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Thu 10 Feb 2011 03:46 PM

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Impairments push Emaar to 62% profit slump in Q4

Dubai state-backed developer books $113.5m in impairments 'on certain assets' in Q4

Impairments push Emaar to 62% profit slump in Q4
Net profits in the three months to December 31 plunged to $74.6m, down from $196m in the year-earlier period

Emaar Properties, builder of the world’s tallest tower,
posted a 62 percent fall in profits in the fourth quarter on high writedowns
and impairments related to its associates.

Net profits in the three months to December 31 plunged to
$74.6m, down from $196m in the same period a year earlier.

In total, the UAE’s biggest developer booked $113.5m in
impairments during the quarter, linked to its financial associates and discontinued
operations, but provided no further details.

Emaar owns a 45 percent stake in Islamic mortgage provider
Amlak and has outstanding loans of AED772.6m to the company

Impairments aside, Emaar announced profits of $826m in 2010,
a 31 percent increase on the year before, and a 44 percent rise in revenues to
$3.3bn.

The firm’s mall, retail and hospitality subsidiaries
provided approximately 24 percent of total revenues, showing Emaar’s efforts to
diversify its revenue streams are beginning to bear fruit.

Emaar handed over 3,500 units in the UAE and internationally
in 2010, including over 770 units in Burj Khalifa and 420 units in
international markets.

Emaar's chairman Mohammed Alabbar said the developer will
see "significant revenue streams from international operations" this
year.

The firm is scheduled to hand over homes in two major Saudi
projects, and is continuing to work on developments in Turkey and Egypt.

Emaar said in January that it sold $500m in Islamic bonds
and the company raised the same amount in December to repay short-term loans. The
developer plans to raise $2bn in total.

*With agencies

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Expat Writer 9 years ago

'Handed over 770 units in the Burj Khalifa'.....handed them over to who?They are all empty.

They probably completed them during this period but I for one would like to know how many they have been paid for.