Emaar dollar bonds fall on missed profit estimates

Emaar Properties PJSC’s dollar- denominated bonds dropped after the builder of the world’s tallest tower in Dubai said first-quarter profit slumped 45 per cent, missing analysts’ estimates. The yield on the 7.5 per cent convertible notes maturing in December 2015 rose 18 basis points, or 0.18 percentage point, to 6.33 per cent, the highest since April 18, as of 12:55pm in Dubai, according to data compiled by Bloomberg.

The rate on the 8.5 per cent Islamic bond due August 2016 gained 11 basis points to 7.9 per cent, the data shows.First-quarter net income fell to Dh421 million ($115m) from Dh761m a year earlier, Emaar said yesterday. The average estimate of six analysts in a Bloomberg survey was for a profit of Dh567m.