DUBAI (Reuters) - Dubai’s Emaar Properties (EMAR.DU), builder of the world’s tallest tower, reported a 15 percent rise in first-quarter net profit on Sunday, broadly in line with analysts’ expectations.
The developer, in which Dubai’s government owns a minority stake, made a net profit of 1.384 billion dirhams ($376.9 million) in the three months to March 31, it said in a statement.
That compares with a profit of 1.205 billion dirhams in the corresponding period last year, the company said.
SICO Bahrain and EFG Hermes had forecast Emaar would make a quarterly profit of 1.424 billion dirhams and 1.350 billion dirhams respectively.
Quarterly revenue was 4.072 billion dirhams, against 3.529 billion dirhams a year earlier.
Recurring revenue, from the likes of hotel, entertainment and shopping mall operations, contributed 39 percent of the group revenue, Emaar said.
First-quarter property sales jumped 44 percent year on year to 6.049 billion, it said, with a project backlog of 46.245 billion dirhams to be recognized as revenue in the “next few years”.
The company “has seen an increase in property sales in Dubai,” chairman Mohamed Alabbar said in the statement.
The total value of property transactions in Dubai jumped 45 percent year on year in the first quarter to $21 billion, according to the Dubai Land Department.
Chairman Mohamed Alabbar said on March 6 that he hoped for a better year after a “tough” 2016.
($1 = 3.6725 UAE dirham)
Reporting by Hadeel Al Sayegh; Editing by David Goodman