UAE’s real estate companies profits fall 25% in Q2

The profits of the UAE-listed real estate companies fell 25 percent year-on-year during the second quarter of the current year, according to Mubasher on Friday.

The reasons for that decline include the increase in the cost of finance and operational costs.

According to data compiled by Mubasher, total profits reported by developers listed on the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) went down to AED 3.05 billion ($830 million) in the second quarter, compared to AED 4.09 billion ($1.11 billion) the year before.

Real estate companies listed on the DFM posted AED 2.56 billion profits in the second quarter this year, against AED 3.63 billion during the same period of 2018.

Meanwhile, ADX-listed developers reported a 5.86 percent year-on-year hike in their profits during the three-month period ended 30 June, recording AED 485.91 million.

Emaar Properties and Aldar Properties topped profitable real estate companies in both Dubai and Abu Dhabi markets.

Emaar’s profits levelled down by 14.82 percent to AED 1.3 billion in the second quarter of 2019, in comparison with AED 1.6 billion in the year-ago period.

The major company’s revenue sank to AED 1.81 billion from April to the end of June, from AED 2.24 billion in the second quarter of 2018.

Meanwhile, Aldar Properties posted a 5.34 percent year-on-year profit increase in the second quarter this year, registering AED 470.4 million.

Aldar’s revenue rose to AED 1.67 billion in the three-month period ended 30 June, versus AED 1.51 billion a year earlier.