DUBAI, March 18 (Reuters) - Emaar Properties’ revenue from sale of apartments more than doubled last year, offseting a sharp drop in sales of commercial units that is struggling to recover three years after the emirate’s property market collapse.
The builder of the world’s tallest tower generated a revenue of 2.5 billion dirhams ($680.64 million) from sales of condominiums last year, compared with 1.1 billion dirhams in 2011, a detailed earnings statement released on Monday showed.
However, income from sale of commercial units, plots and others dropped significantly to 682.2 million dirhams compared with 2.7 billion dirhams in the prior-year.
Emaar is one of the better performing companies in Dubai’s real estate sector with its focus on retail and hospitality segments helping it see through the emirate’s real estate crash which resulted in a 50 percent slump in prices.
Dubai itself has witnessed a gradual recovery in its property market largely buoyed by return of speculative buyers in the home sales segment.
Emaar’s revenue from villa sales in 2012 also dropped slightly to 937.1 million dirhams from 958.7 million dirhams. Overall revenue was nearly flat at 8.2 billion dirhams from 8.1 billion dirhams in 2011.
The company posted a 28 percent drop in fourth-quarter net profit in January, missing analysts’ forecasts, as costs soared amid revival of stalled projects in the emirate.
The report also said Emaar received outstanding receivables of 326.3 million dirhams from troubled affiliate Amlak last year for which debit notes were issued. The developer is still owed 243 million dirhams by Amlak, down from 595 million dirhams in 2011.
Emaar shares have risen 44.5 percent year-to-date outperforming the wider Dubai benchmark, which is up 16.8 percent in the same period. The stock was down 1.6 percent as at 0715 GMT on Monday. ($1 = 3.6730 UAE dirhams) (Reporting by Praveen Menon; Editing by Dinesh Nair)