Dubai – Global developer Emaar Properties recorded full-year 2016 net profit of Dh5.233 billion ($ 1.425 billion), 28 per cent higher as compared to the FY 2015 net profit of Dh4.082 billion ($1.111 billion).
Emaar achieved FY 2016 revenues of Dh15.540 billion ($4.231 billion), an increase of 14 per cent over FY 2015 revenues of Dh13.661 billion ($3.719 billion).
Highlighting the strength of its diversified business model, recurring revenues from Emaar’s shopping malls, hospitality, entertainment and leisure businesses for 2016 was Dh5.976 billion ($1.627 billion) similar to 2015, despite the ongoing redevelopment at The Address Downtown Dubai. The recurring revenue businesses now account for 38 per cent of the total Group revenue.
Emaar’s international operations recorded revenue of Dh2.665 billion ($726 million) during FY 2016 accounting for 17 per cent of the total Group revenue.
With increase in revenue contribution from real estate, the performance of the malls and hospitality businesses, the fourth-quarter (October to December) 2016 net profit of Emaar increased by 56 per cent to Dh1.613 billion ($439 million) compared to Q4 2015 net profit of Dh1.034 billion ($281 million), and 41 per cent higher than the Q3 (July to September) 2016 net profit of Dh1.145 billion ($312 million).
Revenue for Q4 2016 was Dh4.437 billion ($1.208 billion), 16 per cent higher than the Q4 2015 revenue of Dh3.812 billion ($1.038 billion), and 15 per cent more than the Q3 2016 revenue of Dh3.846 billion ($1.047 billion).
Emaar has handed over around 41,500 residential units, 33,947 of them in Dubai. Highlighting its strong development potential, Emaar has a land bank of 190 million sq m globally including a significant 25 million sq m in the UAE.
Investments in premium real estate contributed to robust property sales in Dubai during 2016 at Dh14.4 billion ($3.92 billion), which is 41 per cent higher than the FY 2015 sales value of Dh10.23 billion ($2.79 billion). Sales across various international markets in 2016 were valued at Dh3.9 billion ($1.1 billion). The Group now has a backlog of Dh42.977 billion ($11.701 billion) to be recognised in the next few years, underlining its strong financial fundamentals.
Mohamed Alabbar, Chairman of Emaar Properties, said that the impressive growth achieved by the company in 2016 underlines the success of the company’s long-term investments in creating sustained value for its stakeholders.”