NBK Capital issued a report on Emaar Properties, stating that Q1-14 revenue missed estimates on property development.

NBK Capital defined the stock’s 12- month fair value at AED 10.57, and recommended a “Hold”.

Emaar published its preliminary results for 1Q2014. Revenues amounted to AED 2,256 million, 24% below forecast of AED 2,986 million and 14% below the Bloomberg consensus estimate of AED 2,626 million. The breakdown was as follows:

o Hospitality: AED 483 million, 6% ahead of estimate of AED 454 million;

o Retail: AED 863 million, 9.7% ahead of forecast of AED 787 million.

o Property development: AED 910 million, missing forecast of AED 1,745 million by 48% (there is usually very little visibility on the performance of this segment).

“ Overall, this is a good quality set of results, where the recurring revenue generating segments have performed quite strongly. We view this very positively as these are the primary drivers of our valuation. We maintain our fair value on the stock for the time being and our “Hold” recommendation”.