Dubai, UAE; March 19, 2008: The financial results for Emaar Properties PJSC for the year ended December 31, 2007, were approved at the company’s tenth Annual General Meeting (AGM), which was held today.
The assembly approved a cash dividend of 20 per cent of the nominal value of shares, which will be entitled to all shareholders registered on the tenth day following the date of the AGM.
One of the world’s leading property developers, Emaar’s current land bank stands at 519 million square metres – over twelve times more than in 2005. The fair value of this land increased by 74 per cent from AED 68 billion in 2006 to AED 118 billion (US$32 billion) as at end of 2007.
Presenting the company’s financial results for 2007 and outlining its future growth strategy, Mr Mohamed Ali Alabbar, Chairman, Emaar Properties, said that despite the prevailing volatility in international capital markets, the company maintains its dominant global role. “Our strategy of creating significant value for our shareholders is progressing well. The net asset value of the Group, including the fair value of the land, real estate properties and market value of listed associates increased 46 per cent from AED 11.6 per share in 2006 to AED 16.9 per share as at end of 2007.”
Emaar’s partnership with Bawadi LLC to develop 70 million square feet of land increased the company’s land bank in Dubai by 76 per cent to 162 million square feet. “This transaction is fully in line with the Dubai Strategic Plan outlined by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, and demonstrates how the emirate can continue to enjoy a leadership position by leveraging its existing strengths,” said Mr Alabbar.
He added: “By aiming higher, we hope to achieve even greater things. Emaar is well on its way to becoming one of the most valuable companies in the world by 2010, and we are grateful to our shareholders for their trust in our strategy of geographic expansion and business segmentation, aimed at generating even more long-term value for them.”
Highlighting the gains by Emaar’s business subsidiaries, Mr Alabbar said that Emaar Hospitality will build assets with a total value of AED 3.5 billion (US$ 950 million) through a portfolio of seven hotels by next year. Emaar Malls Group, the shopping malls subsidiary, will open The Dubai Mall and Dubai Marina Mall towards the end of 2008 with a combined asset value of AED 9 billion (US$ 2.45 billion) and gross leasable area of over 3.9 million square feet.
Mr Alabbar pointed out that the Armani Residences at Burj Dubai, which last year achieved the iconic status of being the world’s tallest building, also commands some of the world’s highest prices, with the Armani Residences achieving prices of up to AED 12,888 (US$ 3,509) per square ft.
“Emaar’s focus is on execution, with the clear objective of ensuring the timely delivery of our domestic and international projects,” he said. “2007 marked the first year that we launched projects in the international arena, and the response to our sales launches was extremely encouraging. Last year, Emaar launched 3,891 units and sold 2,456 units in international pilot projects, excluding the United States. Of these total units launched, 67 per cent were in last quarter of 2007.”
In 2007, Emaar recorded annual net profits of AED 6.575 billion (US$ 1.790 billion), an increase of three per cent compared to AED 6.371 billion (US$ 1.735 billion) in 2006. During the same period, annual revenue increased by 25 per cent to AED 17.566 billion (US$ 4.782 billion) compared to AED 14 billion (US$ 3.813 billion) in 2006. Earnings per share (EPS) for the year 2007 stood at AED 1.08 (US$ 0.29) compared to AED 1.05 (US$ 0.29) in 2006.
During the AGM, the assembly approved the Director’s Report, Auditor’s Report and the appointment of auditors for 2008.
