Revenue – AED3.8bn, +16% Y-o-Y, +3% Q-o-Q, +1.2% vs. EFGe EBIT – AED1.3bn, +32% Y-o-Y, +8% Q-o-Q, 6.8% vs. EFGe Net Income – AED1.1bn, +36% Y-o-Y, 10% Q-o-Q, EFGe: -14% Contracted sales in Dubai – AED2.7bn, +95% Y-o-Y, -41% Q-o-Q Contracted sales in international markets – AED1.5bn, -3% Y-o-Y, +139% Q-o-Q    Strong recovery in international contracted sales come as the main positive highlight for the quarter. We attribute this to good numbers reported at Emaar Misr’s project, Marassi, in 3Q16, pending confirmation on the release of additional information, from either Emaar Properties or Emaar Misr. Local sales were also strong (almost doubling Y-o-Y), with the sequential drop (41%) attributed to high base effect and to seasonality. Reported numbers were decent, coming in roughly in line with our estimates, with the 14% earnings miss mostly attributed to higher-than-expected minority charge.      Main positives: i) Strong recovery in international contracted sales, which came in at AED1.5bn in 3Q16 (-2.9% Y-o-Y, +138.8% Q-o-Q). The corresponding figure for 9M16 is AED3.1bn (-21.4% Y-o-Y). Better sales numbers in Egypt was likely the driver for the growth in 3Q16, likely on strong sales at Emaar Misr’s project in the North Coast (Marassi). We estimate sales in Egypt have exceeded cEGP2.9bn (unchanged Y-o-Y), showing some recovery, after a weak 1H16. We await the figure to be published in Emaar’s quarterly presentation or release of operational metrics from Emaar Misr for a confirmation. 9M16 international sales total AED3.1bn (-21.4% Y-o-Y); ii) Local sales were also strong, coming in at AED2.7bn (+95.3% Y-o-Y, -41.1% Q-o-Q), with the sequential weakness attributed to seasonality, especially after an exceptionally strong 2Q16. 9M16 sales total AED11.6bn (+54.4% Y-o-Y). Management indicated that the Dubai sales were led by continued strong demand for The Address Residence Dubai Opera, premium Fairway Vistas & Sidra villas in Dubai Hills Estate and Harbour Views at Dubai Creek Harbour, with demand for the latter spiking after the launch of The Tower at Dubai Creek Harbour, according to management iii) Strong revenue figure, adding 15.5% Y-o-Y and 3.2% Q-o-Q, driven by strong growth in the development sales, which we estimate to have come at AED2.5bn (+20.7% Y-o-Y, +5.0% Q-o-Q); iv) Good reported numbers, with the earnings miss attributed to a relatively large minority charge for minority interest. Higher income from Emaar’s Indian operations, post its full consolidation, may be a possible explanation for this      Main negatives: i) Weaker revenue growth for EGM in 3Q16, with revenue adding 6.2% Y-o-Y only to AED774mn ii) Weak growth for revenue from hospitality and commercial leasing in 3Q16 (AED588mn, +3.9% Y-o-Y, +2.1% Q-o-Q), likely a reflection of weaker income from hospitality (average occupancy in the flagship Address + Resorts in 9M16 was 85% vs. 86% in 1H16, indicating a weak 3Q16). That said, 9M16 occupancy came 2ppts ahead of 9M15 average of 83%. (Mai Attia, Sara Boutros, company)   Emaar (DU): AED6.79 as of 8 November 2016, Rating: Buy, FV: AED10.29/share, MCap: USD13,246mn, EMAAR UH / EMAR.DU