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Emaar approves $2.45bn cash dividend

Total value of dividends distributed this year over $4.66bn

Downtown Dubai by Emaar Properties.
Downtown Dubai by Emaar Properties.

The board of directors of Emaar Properties PJSC has approved a special cash dividend of AED9bn ($2.45bn) to be distributed to the company's shareholders.

The amount the total value of dividends distributed this year to over AED17.12bn ($4.66bn) - one of the largest announced by any listed company in the UAE.

The total value of the dividends is about 250% of the par value of Emaar 's shares, highlighting the strong value creation by the company.

The newly announced cash dividend follows overwhelming investor response from regional and international investors to the initial public offering of Emaar Malls Group , which recorded total orders of over AED172bn ($46.8bn).

Emaar Properties will conduct an Ordinary General Meeting to seek the approval of its shareholders in distributing the special dividend.

One of the most actively traded shares on DFM, Emaar 's stock value has increased by about 108% in the past 52 weeks, with year-to-date increase in value by over 62%. As of 11 October, 2014, Emaar has a market capitalisation of over AED81.98bn ($22.32bn).

Mohamed Alabbar, chairman of Emaar Properties, said: "With over AED17.12bn ($4.66bn) in dividend, including AED10bn ($2.72bn) in cash, declared this year, Emaar has set a milestone in enhancing value for our shareholders. Earlier this year, we had announced the additional cash dividend from the listing of Emaar Malls, and we are now delivering on our promise to them."

He added: "The highly successful IPO of Emaar Malls and the overwhelming investor response highlight the global investor confidence in our company's financial strength and vision, which is led by the positive growth of Dubai."

In April, Emaar declared dividend of AED8bn ($2.18bn), including 15% cash dividend, equivalent to about AED975mn ($265.5mn), and 10% bonus shares, or 650mn shares, valued at about AED7.12bn ($1.94bn) at AED10.95 per share, as of 23 April, 2014.

The leading owner and operator of shopping malls in Dubai, Emaar Malls has a total GLA of approximately 5.9mn ft2 (as at 30 June 2014) and a GLA occupancy rate of 95% in the six months ended 30 June 2014, operating through four divisions. Its flagship asset, The Dubai Mall is the world's most visited retail and lifestyle destination.

With assets of AED64.93bn ($17.68bn) as of 2013 end and an impressive land bank of over 226mn m2 in high-growth international markets, Emaar also owns 12 hotels and resorts, with over 1,900 rooms.

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