Emaar board meets to approve Dh9bn cash dividend

Emaar Properties has called for an ordinary general meeting (OGM) of its board and shareholders on Monday to seek approval to distribute a special cash dividend of Dh9 billion.

If the meeting falls short of quorum, the next OGM will be held on December 1.

The cash dividend follows the IPO and listing of Emaar Malls Group, the shopping malls and retail business of Emaar Properties. The IPO of Emaar Malls Group had recorded total orders of over Dh172 billion.

With the approval of the cash dividend, the total value of dividends to be distributed to Emaar’s shareholders this year will be over Dh17.12 billion. This is about 250 per cent of the par value of Emaar’s shares.

Mohamed Alabbar, Chairman of Emaar Properties, said: “The additional cash dividend is a strong demonstration of our commitment to create long-term value for our shareholders. Their confidence in our growth strategy has been our inspiration in undertaking the IPO for Emaar Malls Group, which is now listed on Dubai Financial Market.”

He added: “This year has been exceptional for Emaar in our concerted attempts at value creation for our stakeholders with all our core businesses – property, malls and hospitality & leisure – recording robust growth. Our international operations are also robust and we will continue to draw on our proven competencies to further establish Emaar as one of the most valuable and admired companies.

“We will also leverage the positive growth environment of Dubai, which is preparing to host the World Expo 2020, and strengthen our partnerships to create cities of the future in line with the growth vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.”

In April, Emaar declared dividend of Dh8 billion, including 15 per cent cash, equivalent to about Dh975 million, and 10 per cent bonus shares, or 650 million shares, valued at about Dh7.12 billion at Dh10.95 per share, as of April 23, 2014.

Emaar recorded a net operating profit of Dh2.489 billion and revenue of Dh7.039 billion during the first nine months of 2014.

Emaar Malls recorded total revenue of Dh1.898 billion during the same period, which is 27 per cent of Emaar’s total revenue.  The company’s flagship asset, The Dubai Mall, welcomed over 58 million visitors during the first nine months of 2014.
 

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