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Dubai: A decline in proceeds from the US subsidiary reduced Emaar Properties' first quarter revenue slightly, the company said.
Emaar yesterday reported net profit of Dh1.65 billion ($451 million) in the three months ended March 31, 2008, which is similar what the developer earned in the first and the last quarters of 2007.
Emaar's revenue declined to Dh3.961 billion in the first quarter of 2008, down from Dh3.969 billion in the first quarter of 2007. This figure is much below the Dh5.141 billion revenue in the fourth quarter of 2007.
"The decline in revenue in the first quarter of 2008 as compared to the fourth quarter of 2007 is due to revenue from [US subsidiary] John Laing Homes decreasing by Dh1.2 billion ($327 million) due to its cyclical delivery pattern.
"The fourth quarter of 2007 also includes income from land sales from our associates in Morocco and India," Emaar said.
Annualised earnings per share (EPS) for the first quarter of 2008 is Dh1.08, the same as the actual EPS of Dh1.08 in 2007.
Mohammad Ali Al Abbar, chairman of Emaar Properties, said: "Despite operating in an extremely challenging global economic environment, Emaar Properties continued to add value to its shareholders through its focus on geographic expansion and business segmentation.
"Emaar's farsighted approach of investing in dynamic emerging markets and ongoing commitment to creating trend-setting neighbourhoods in Dubai were among the prime drivers of its value creation for our shareholders."
Emaar's focus in the first quarter of 2008 was on consolidating its international operations, as well as unveiling additional premium residential and commercial property in Dubai.
During the period, customer response to the sale of new apartments in Downtown Burj Dubai was overwhelming.
During the first quarter of 2008, the company had record sales of Dh5.6 billion in the UAE, an increase of 20 per cent compared with sales of Dh4.681 billion in the fourth quarter of 2007.
Investment in hospitality, malls and international businesses continue as Emaar plans to open The Dubai Mall, Dubai Marina Mall and three five-star hotels in the third and fourth quarters of 2008.
Emaar strengthened its global operations with the signing of strategic partnerships earlier this year.
The company became one of the first property developers from the region to expand into China by signing a joint venture agreement with the Shanghai China-News Enterprise Development, a Chinese government entity.
The venture was announ-ced during His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai's China visit.
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