Emaar Properties, UAE's largest developer by market value, reported a 69-percent plunge in second-quarter net profit Tuesday, missing estimates, as it handed over fewer homes and wrote off its investments in Dubai Bank. The builder of the world's tallest tower, Burj Khalifa, made a net profit of AED250 million ($68.1 million) for the quarter ended June 30, compared with a profit of AED801.9 million in the same period a year ago. Emaar handed over around 244 units during the second quarter, down from 612 units in the same period last year, it said in a statement on Dubai's bourse website. This was also down from 270 handed over in the first quarter of this year. Emaar, which has set up a core team for a strategic review of its operations, said revenues in the second quarter fell to AED2.03 billion, a drop of 23 percent. The developer wrote off its investment in Dubai Bank, valued at AED172 million it said in the statement. Dubai government announced in May that it would take over the troubled lender. Net profit for the first six months of 2011 fell 49 percent to AED843 million, Emaar said. Emaar's shares closed 0.3 percent lower on the Dubai bourse before the results were announced. The shares have fallen 19 percent year-to-date. House prices in Dubai will fall another 10 percent, a deepening a three-year rout to nearly 60 percent from its peak, a Reuters poll showed earlier in July. Mohamed Alabbar, chairman, Emaar Properties, said in January that as part of its long-term vision to create and sustain long-term value for its stakeholders, the company is focused on creating premium real estate developments in key emerging markets across the world. “We will continue our emphasis on business and geographic expansion, while exploring partnership opportunities with proven specialists to bring greater value efficiencies to our operations,” he said. Meanwhile, Emaar Properties' Indian subsidiary made a net loss of Rs2.05 billion (AED170.4 million) in the first quarter of this year, the company said recently. Emaar MGF, a joint venture between Dubai-based real estate developer Emaar Properties and India's MGF Development Limited, also saw total income decline 1.25 percent to Rs10.5 billion in 2010-11 from Rs10.6 billion the previous year, the company said in a posting to the Bombay Stock Exchange. Emaar MGF dismissed rumors earlier this year that it was valuing the assets of its joint venture with MGF Developments in preparation for an exit or partial sale. The company came under fire after building the 63.5 hectare Commonwealth Games Village in New Delhi - a development plagued by poor construction work and delays. The developer was penalized by Indian authorities who cashed its $45 million (AED165.2 million) bank guarantee. Emaar Properties declined to comment on Tuesday on the first-quarter performance of its subsidiary. During the last fiscal year, expenditures of Emaar MGF soared by 23.87 per cent to Rs10.02 billion from Rs8.09 billion in the year-ago period, the filing said. The company also said its raw materials cost went up by 17.24 per cent to Rs6.33 billion from Rs5.4 billion in 2010
