DUBAI — Dubai’s Emaar Properties on Wednesday posted a seven-percent drop in quarterly profits as revenues cost doubled, but said recurring revenues from hospitality were on the rise.
Emaar said net profits dropped to 612 million dirhams (166.8 million dollars) in the quarter ending September 30, compared to 655 million dirhams in the corresponding period last year.
The developer that built the world’s tallest tower, Burj Khalifa, said however that its revenues increased 43 percent to 2.8 billion dirhams in the same period.
The company’s income statement showed that the cost of revenues doubled from 852 million dirhams in the third quarter of 2009 to 1.75 billion dirhams in the third quarter this year.
“Our strategic developments in shopping malls and hospitality are now yielding strong recurring revenues, which highlights our commitment to investing in the long term by adding value to our stakeholders,” Emaar chairman Mohamed Alabbar in a statement.
“The challenges of the global financial slowdown are behind us, and we are entering a new phase of growth,” he added.
Emaar said its net profits in the first nine month of 2010 hit 2.2 billion dirhams, compared to a loss of 393 million dirhams in the corresponding period last year.
The company’s revenue was boosted by the handover of units in Burj Khalifa during the first half of the year.
Dubai house prices shed more than half their value, according to various estimates, as a result of the global financial crisis, which dried out international finance.
The listed firm, which is partly owned by the Dubai government, owns Dubai Mall. It also partnered with Italian designer Giorgio Armani to strengthen its presence in hospitality, opening the first Armani hotel in Burj Khalifa earlier this year.
Emaar successfully tapped the international bond market earlier this month launching convertible notes worth 500 million dollars that are due in 2015. It said the bond sale issue was aimed at converting short-term liabilities into long-term debt.