By: Bedour El Ra’ee

Mubasher: The ten real estate companies listed on the UAE stock exchanges achieved a decline of 39% in profits during the third quarter of 2018 compared to the same period in the prior year.

Earnings shrank to AED 2.5 billion in Q3-18 from AED 4.05 billion in Q3-17, according to the latest data contributed by Mubasher.

Listed on the Abu Dhabi Securities Exchange (ADX), real estate companies posted a decrease of 33% in profits to AED 412.4 million in Q3-18 from AED 615.03 million in Q3-17.

Meanwhile, the property firms listed on the Dubai Financial Market (DFM) registered a drop of 40.10% to AED 2.06 billion in Q3-18 from AED 3.433 billion in Q3-17.

RAK Properties incurred a loss of AED 22.8 million in Q3-18 against profits valued at AED 13.1 million in Q3-17.

The ADX-listed Sharjah Group reported a plummet of 80.5% in profits to approximately AED 670,000 in Q3 this year from AED 3.43 million in Q3-17.

During the first nine months of 2018, the real estate sector has acquired 19% of total profits or AED 10.88 billion in both the ADX and the DFM.

In the nine-month period in 2018, real estate companies listed on both the ADX and the DFM registered a decline of 10.4% to AED 57.59 billion compared to AED 52.18 in 9M-17.

The real estate sector in the ADX logged profits worth AED 1.57 billion in 9M-18 from AED 1.93 billion in 9M-17, a year-on-year decline of 18.68%.

The DFM-listed Emaar Properties reported a decrease of 33.5% in earnings to AED 681.8 million in Q3-18 from AED 1.024 billion in Q3-17.

During the 9-month period, real estate companies listed on the DFM posted an increase of 38.17% in earnings to AED 9.31 billion from AED 6.74 billion in 9M-17.

DSI succeeded in shrinking its losses to AED 662.3 million in 9M-18 from AED 1.22 billion in 9M-17.

The income statements of the real estate sector in both the ADX and the DFM were impacted by the negative financials of development property companies due to low demand, Fadi Ghattis, the CEO of MindCraft Consultants, told Mubasher.