|By TAP Staff| The Board of Directors of Emaar Properties has approved a Special Cash Dividend of AED 9 billion (US$ 2.45 billion) to be distributed to the company’s shareholders taking the total value of dividends distributed this year to over AED 17.12 billion (US$ 4.66 billion) – one of the largest announced by any listed company in the UAE. The total value of the dividends is about 250 per cent 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 AED 172 billion (US$ 46.8 billion). 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 per cent in the past 52 weeks, with year-to-date increase in value by over 62 per cent. As of October 11, 2014, Emaar has a market capitalization of over AED 81.98 billion (US$ 22.32 billion).
Mohamed Alabbar, Chairman of Emaar Properties, said: “With over AED 17.12 billion (US$ 4.66 billion) in dividend, including AED 10 billion (US$2.72 billion) in cash, declared this year, Emaar has set a milestone in enhancing value for our shareholders. Earlier this year, we had announced the additional cash dividend from the listing of Emaar Malls, and we are now delivering on our promise to them.
“We are thankful to all our stakeholders for their continued trust and confidence in us. We will continue to focus on creating long-term value by further strengthening our core businesses in prime real estate assets, shopping malls & retail and hospitality. Highlighting the success of our strategy to add continuous value to our shareholders, Emaar’s stock has increased over 62 per cent in value year-to-date.
He added: “The highly successful IPO of Emaar Malls and the overwhelming investor response highlight the global investor confidence in our company’s financial strength and vision, which is led by the positive growth of Dubai.
“His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, has set a strong roadmap for growth that will continue to energise the core sectors of the economy in which we have proved our competencies. We will continue to focus our energies to achieving newer milestones and creating value for all stakeholders.”
In April, Emaar declared dividend of AED 8 billion (US$ 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 leading owner and operator of shopping malls in Dubai, Emaar Malls has a total GLA of approximately 5.9 million sq ft. (as at 30 June 2014) and a GLA occupancy rate of 95 per cent 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 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 also owns 12 hotels and resorts, with over 1,900 rooms. This year, Emaar has launched several new major projects, which received strong investor response.