Emaar board approves total cash dividend of Dh9bn

The Board of Directors of Emaar Properties PJSC has approved a Special Cash Dividend of Dh9 billion (US$ 2.45 billion) to be distributed to the company’s shareholders taking the total value of dividends distributed this year to over Dh17.12 billion (US$ 4.66 billion) – one of the largest announced by any listed company in the UAE.

The total value of the dividends is about 250 per cent of the par value of Emaar’s shares, highlighting the strong value creation by the company.

The newly announced cash dividend follows overwhelming investor response from regional and international investors to the initial public offering of Emaar Malls Group, which recorded total orders of over Dh172 billion (US$ 46.8 billion).
Emaar Properties will conduct an Ordinary General Meeting to seek the approval of its shareholders in distributing the special dividend.

One of the most actively traded shares on DFM, Emaar’s stock value has increased by about 108 per cent in the past 52 weeks, with year-to-date increase in value by over 62 per cent.

As of October 11, 2014, Emaar has a market capitalisation of over Dh81.98 billion (US$ 22.32 billion).

Mohamed Alabbar, Chairman of Emaar Properties, said: “With over Dh17.12 billion (US$ 4.66 billion) in dividend, including Dh10 billion (US$2.72 billion) in cash, declared this year, Emaar has set a milestone in enhancing value for our shareholders.
“Earlier this year, we had announced the additional cash dividend from the listing of Emaar Malls, and we are now delivering on our promise to them.

“We are thankful to all our stakeholders for their continued trust and confidence in us.

“We will continue to focus on creating long-term value by further strengthening our core businesses in prime real estate assets, shopping malls and retail and hospitality. Highlighting the success of our strategy to add continuous value to our shareholders, Emaar’s stock has increased over 62 per cent in value year-to-date.

He added: “The highly successful IPO of Emaar Malls and the overwhelming investor response highlight the global investor confidence in our company’s financial strength and vision, which is led by the positive growth of Dubai.

“His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has set a strong roadmap for growth that will continue to energise the core sectors of the economy in which we have proved our competencies.

“We will continue to focus our energies to achieving newer milestones and creating value for all stakeholders.”

In April, Emaar declared dividend of Dh8 billion (US$ 2.18 billion), including 15 per cent cash dividend, equivalent to about Dh975 million (US$ 265.5 million), and 10 per cent bonus shares, or 650 million shares, valued at about Dh7.12 billion (US$ 1.94 billion) at AED 10.95 per share, as of April 23, 2014.

The leading owner and operator of shopping malls in Dubai, Emaar Malls has a total GLA of approximately 5.9 million sq ft. (as at 30 June 2014) and a GLA occupancy rate of 95 per cent in the six months ended 30 June 2014, operating through four divisions.

Its flagship asset, The Dubai Mall is the world’s most visited retail and lifestyle destination.

With assets of Dh64.93 billion (US$ 17.68 billion) as of 2013 end and an impressive land bank of over 226 million sq m in high-growth international markets, Emaar also owns 12 hotels and resorts, with over 1,900 rooms.

This year, Emaar has launched several new major projects, which received strong investor response.

Follow Emirates 24|7 on Google News.