Emaar posts profit of $120 mn for June quarter

Written by Agencies | Dubai | Updated: Jul 31 2009, 19:09pm hrs
Dubai-based realty developer Emaar Properties said on Friday that its net operating profit surged to USD 120 million in the second quarter of 2009 over USD 65 million in the same quarter last year.

Revenue for the three-month period ended June 30 grew by 25 per cent to USD 528 million, the company said in statement. The increase in revenue and profitability in the second quarter of 2009 can be attributed to higher unit deliveries and increased sales of completed units as compared to first quarter, the company said.

Emaar Properties Chairman Mohamed Alabbar said: "The first half of the year was extremely challenging as we steered the company through new market realities. We succeeded in identifying the right opportunities that co-existed with the challenges and focused on project delivery."

Due to continued slowdown in the US real estate market and chapter 7 proceedings relating to J L homes, Emaar also decided to write down its complete book value of JL Homes amounting to USD 470 million during the second quarter in order to be conservative in accounting for such an investment.

Such exceptional write down resulted in a net loss of USD 350 million during the second quarter of 2009.

Emaar says its country subsidiaries and joint ventures in India, Egypt, Morocco, Syria, Jordan and Saudi Arabia continue to make strong progress with various projects, several of them coming on line next year.