By: Mahmoud Gamal

Dubai – Mubasher: The UAE listed real estate companies reported a 21.9% year-on-year decline in its profits during the first quarter of 2017, according to the listed firms’ quarterly financial statements.

Profits reached AED 2.74 billion ($745.76 million) in Q1-17, compared to AED 3.51 billion ($955.34 million) in Q1-16.

The Q1-17 profits were weighed down by lower revenues and delayed payments in some projects, analysts told Mubasher.

The Abu Dhabi-listed property firms posted AED 683.41 million in Q1-17, a growth of 1.23% from AED 675.06 million in Q1-16.

Aldar Properties accounted for the biggest share of profits after posting AED 640.63 million in Q1-17 backed by a rise in direct costs, registering a 2% year-on-year decline.

RAK Properties saw the highest rise in profits to AED 39.88 million in Q1-17, up 115% year-on-year.

However, Eshraq Properties saw a decline in its losses to AED 955,000 in Q1-17, compared to AED 1.01 million in Q1-16.

In Dubai’s bourse, seven real estate companies saw a 27.6% decline in their profits to AED 2.056 billion in Q1-17 from AED 2.84 billion in Q1-16.

Emaar Properties acquired the biggest share of profits after recording AED 1.384 billion, a growth of 15% year-on-year.

Emaar’s profits were backed by fixed revenues from the hospitality sector and increased sales, with expectation to see higher results this year, Fady El-Ghattis, CEO of Topsy Turvy Consultations, said.

Emaa Malls Group also saw a 2% year-on-year rise in its profits to AED 539 million in Q1-17.

Most real estate firms saw a positive performance in Q1-17, yet the losses of Drake and Scull International (DSI) along with the modest profits of Arabtec Holding weighed on the sector’s overall profits, capital market analyst Waleed Hamad said.

DSI incurred losses of AED 838.88 million in Q1-17, against profits of AED 9.53 million in Q1-16.

Arabtec turned profitable after generating AED 17.62 million in Q1-17, while direct costs rose to AED 2.08 billion in Q1-17.

The main problem facing DSI and Arabtec is that they do not generate operating profits till now, Al Ghattis said.

Real estate developers are expected to see profits this year, spurred by Expo 2020 projects, Al Ghattis added.

Translated by: Julian Nabil