Feb. 24 (Bloomberg) -- Emaar Properties PJSC rose to the highest level in more than four years as the real estate company said it would start offering units of a new project and on bets it would pay a higher annual dividend.
Shares of the developer of the world’s tallest skyscraper climbed 4.6 percent to 5.26 dirhams, the highest close since November 2008. The stock was the biggest gainer on the benchmark DFM General Index. Emaar, whose board will meet tomorrow to discuss the dividend, said it will build two hotels and serviced apartment towers in Dubai that will include 532 apartments and 180 hotel rooms.
“New projects create more and more interest from investors and build momentum,” said Tariq Qaqish, deputy head of asset management at Dubai-based Al Mal Capital. “Investors are also buying stock ahead of the dividend announcement.”
Emaar said it will offer units of The Address Residence Sky View in Dubai and Riyadh on March 2 following a sell-out response to those made available at a separate luxury hotel development in Downtown Dubai last month. In January, Emaar shares surged 30 percent, the best start to a year since the company went public in 2000.
Dubai’s property market is recovering amid a broader pickup in the economy, which probably expanded 5 percent in 2012, the fastest pace since 2007, according to government forecasts. Tourism, hotel and restaurant industries grew 16 percent in the first half, official data show. The developer’s full-year profit increased 18 percent after it sold more than 80 percent of projects available in 2012.
“The project builds on the growth of the property market and tourism sectors of Dubai,” Chairman Mohamed Alabbar said in the e-mailed statement yesterday.
Dubai announced in November plans to develop a new district with the world’s largest mall, 100 hotels and gardens larger than London’s Hyde Park, which Emaar will co-develop. The sheikhdom also plans to build five theme parks for $2.7 billion.
About 43 million shares were traded today, more than double the three-month daily average. The company’s 14-day relative strength index rose to 78. A reading above 70 indicates to some analysts that a security is poised to drop.
Ten analysts recommend investors buy Emaar shares, while three say hold them, according to data compiled by Bloomberg. HSBC Holdings Plc said earlier this month it expects Emaar’s shares to rise to 6 dirhams.
--Editors: Claudia Maedler, Shaji Mathew