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29 March 2024

No Emaar dividend... for third year running

Emaar said net operating profit rose 31 per cent to Dh3.034 billion in 2010. (FILE)

Published
By Parag Deulgaonkar

Emaar Properties – for the third consecutive year — is not likely to pay dividend for 2010, the proposal for which will be discussed at the annual general meeting (AGM).
 
The Dubai-based developer, in the invitation sent to shareholders, said the board of directors would be discussing the proposal regarding “non-distribution” of dividend for the fiscal year 2010.
 
The company will hold its AGM on March 8. If the meeting falls short of quorum, the next AGM will be held on April 5.


Emaar has not been paying dividend since 2008. In 2008 and 2009, the company said it would reinvest its profits into "long-term growth". The UAE's biggest developer by market value had paid a 20 per cent dividend for 2007.
 
In February, Emaar said net operating profit rose 31 per cent to Dh3.034 billion in 2010 as against a net operating profit of D2.324bn in 2009. Annual revenue for 2010 was Dh12.15bn, 44 per cent higher than the 2009 revenues of Dh8.413bn.

It handed over 3,500 units in the UAE and internationally in 2010, including over 770 units in Burj Khalifa, the world’s tallest building and over 420 units in international markets.

Data collated by this website earlier showed that the 50 listed firms on the Dubai and Abu Dhabi stock exchanges were paying higher [Dh12.8bn] in cash dividends for 2010 compared to Dh12.27bn in 2009.

Shuaa Capital, in its GCC strategy note for equity investments, said: “Companies with the highest growing cash flow are, relatively, least likely to default on their dividends. Companies with the highest dividend yields and the highest earnings growth should therefore provide a relatively safer investment.”