DUBAI, May 1 (Reuters) - Dubai’s Emaar Properties reported an 8.5 percent increase in net profit on Tuesday on the back of strong contributions from its shopping malls business despite a weaker property market.
Dubai’s residential property market is showing few signs of rebounding from a three-year downturn caused by modest demand and increasing supply from new developments.
The developer, in which the government of Dubai owns a minority stake, made a net profit of 1.5 billion dirhams ($408 million) in the three months to March 31, it said in a bourse statement.
That compares with a profit of 1.38 billion dirhams in the year-earlier period.
SICO Bahrain had forecast Emaar would make a quarterly profit of 1.37 billion dirhams.
Emaar said its development arm recorded property sales of 3.9 billion dirhams during the first quarter. In the same period a year ago Emaar had said property sales were 6 billion dirhams.
Emaar Development only listed in the last quarter of 2017.
Emaar said its quarterly profit was 1.67 billion dirhams before taking into account the impact of listing its real estate development arm last year.
That unit recently reported a first quarter profit increase of 62 percent to 819 million dirhama.
Emaar Properties quarterly revenue was 5.59 billion dirhams compared to 4 billion dirhams in the same year ago period. ($1 = 3.6728 dirham) (Reporting by Alexander Cornwell Editing by Saeed Azhar/Keith Weir)