Dubai, UAE; November 25, 2014:
In one of the largest dividends declared by a Public Joint Stock Company in the UAE and the region, an Ordinary General Meeting (OGM) of Emaar Properties today approved the distribution of a total of AED 17.12 billion (US$4.66 billion) in dividends to shareholders this year. This is about 250 per cent of the par value of Emaar’s shares, demonstrating the strong value creation by Emaar.
- OGM approves distribution of special cash dividend AED 9 bn (US$ 2.45 bn) raised from IPO of Emaar Malls Group
- Underlines the strong value creation of Emaar; total dividend is 250% of the par value of shares
- Value of Emaar stocks gain about 95% in the past 52 weeks; year-to-date increase in value by about 57%
- Market capitalisation of AED 78 billion (US$21.25 bn) makes Emaar one of the most valuable companies
Dubai, UAE;November 25, 2014: In one of the largest dividends declared by a Public Joint Stock Company in the UAE and the region, an Ordinary General Meeting (OGM) of Emaar Properties today approved the distribution of a total of AED 17.12 billion (US$4.66 billion) in dividends to shareholders this year. This is about 250 per cent of the par value of Emaar’s shares, demonstrating the strong value creation by Emaar.
The OGM approved a Special Cash Dividend of AED 9 billion (US$ 2.45 billion), which adds to the dividend announced in April of AED 8 billion (US$ 2.18 billion), including 15 per cent cash dividend, equivalent to about AED 975 million (US$ 265.5 million), and 10 per cent bonus shares, or 650 million shares, valued at about AED 7.12 billion (US$ 1.94 billion) at AED 10.95 per share, as of April 23, 2014.
The Special Cash Dividend follows the successful IPO and listing of the Emaar Malls Group, the shopping malls and retail business of Emaar Properties, which had recorded total orders of over AED 172 billion (US$ 46.8 billion). Emaar had committed to distribute the proceeds from the IPO as dividend to shareholders as a token of appreciation and has now delivered on the promise. Emaar Malls Group is now listed on the Dubai Financial Market gaining in value by over 12 per cent.
Mohamed Alabbar, Chairman of Emaar Properties, said the dividends declared underline the company’s commitment to creating long-term value for shareholders. “This has been a milestone year for Emaar as we demonstrated the outstanding success of our value-creation model. We are thankful to our shareholders for their continued support and their confidence in operational strategy of business segmentation and geographic expansion.”
He added: “The inspiring initiatives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, to further catalyse the growth of the economy have contributed to the record performance of Emaar and its subsidiaries.
“The overwhelming investor interest for Emaar Malls Group IPO is a strong testament to international investor confidence in Dubai and in Emaar’s value creation model. We will continue to explore growth opportunities in property, shopping malls & retail and hospitality & leisure, by leveraging Dubai’s positive growth.”
With a market capitalisation of AED 78 billion (US$ 21.25 billion) as of November 23, 2014, Emaar is today one of the most valuable companies in the property sector. In the past year, Emaar’s stocks gained in value by about 57 per cent while growth in value over the past 52 weeks is about 95 per cent.
Emaar recorded a net operating profit of AED 2.489 billion (US$ 678 million) and revenue of AED 7.039 billion (US$ 1.916 billion) during the first nine months of 2014. Emaar Malls recorded a total revenue of AED 1.898 billion (US$ 517 million) during the same period, which is 27 per cent of Emaar’s total revenue. The company’s flagship asset, The Dubai Mall welcomed over 58 million visitors during the first nine months of 2014.
With assets of AED 64.93 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 launched several new major projects this year, which received strong investor response.