Emaar Properties net profit up 20% to $453 million in Q1

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Staff Report

Dubai – Emaar Properties recorded revenue for the first three months of 2018 of Dh5.586 billion ($1.521 billion), 37 per cent higher than Q1 2017 revenue of Dh4.072 billion ($1.109 billion). This was led by significant progress achieved on projects under construction and the growth in malls and hospitality businesses.

Emaar’s net profit grew by 20 per cent to Dh1.665 billion ($453 million), prior to considering the effect of the IPO of Emaar Development, compared to the net profit of Dh1.384 billion ($377 million) during the same period in 2017. The net profit subsequent to considering impact of Emaar Development IPO in 2017 is Dh1.501 billion ($409 million) for the period, an increase of 8.5 per cent over the same period last year.

Emaar Development, the UAE build-to-sell property development business majority-owned by Emaar Properties, recorded strong property sales of AED 3.906 billion (US$ 1.063 billion) during Q1 2018. Emaar Development now has a backlog of AED 41 billion (US$ 11 billion), highlighting the strong revenue recognition in the coming years.

Emaar’s shopping malls, hospitality and leisure and entertainment businesses together generated recurring revenue of AED 1.833 billion (US$ 499 million) during Q1 2018, accounting for 33 per cent of the total Group revenue. This is 15 per cent higher than the Q1 2017 revenue of AED 1.592 billion (US$ 433 million) from these business entities.

Emaar Properties distributed total cash dividend of AED 4 billion (US$ 1.089 billion) from the proceeds of the successful IPO of Emaar Development, in two tranches to the company’s shareholders.

Mohamed Alabbar, Chairman of Emaar Properties, said: “Our strategy to build long-term value for our shareholders is to focus on creating future cities that are relevant to our new generation, and to continue to drive the success of our hospitality, malls, leisure and entertainment businesses. We are a customer-first company, and we focus on rapid construction and project delivery. Our achievements are the result of working and winning together – by being open to ideas, welcoming innovation and promoting smart thinking.”

In the property business, Emaar marked several new residential launches in Dubai, including the unveiling of a private island destination, Emaar Beachfront. Innovative concepts in modern living were also launched in Dubai Creek Harbour, Dubai Hills Estate, Emaar South and Downtown Dubai.

In its other businesses, Emaar Malls (DFM: EMAARMALLS) recorded revenues of AED 1.038 billion (US$ 283 million) in Q1 2018, a growth of 24 per cent over Q1 2017 revenue of AED 836 million (US$ 228 million). Its flagship mall development, The Dubai Mall marked the opening of its expanded Fashion Avenue – which has the largest collection of renowned global brands under one roof. It brings an additional 150 luxury brands and several innovative attractions to the world’s most-visited retail and lifestyle destination.

Emaar has also launched Dubai Hills Mall, a regional mall located in Dubai Hills Estate, with construction progressing at a rapid pace. The Mall will have a GLA of approximately 2 million square feet and will feature approximately 650 retail and dining outlets including ‘fast fashion’ stores, restaurants and cafés.

Emaar’s hospitality, commercial leasing and entertainment businesses reported revenues of AED 795 million (US$ 216 million) during Q1 2018, 5 per cent higher than the Q1 2017 revenue of AED 756 million (US$ 206 million) during Q1 2017. Emaar Hospitality brands – Address Hotels + Resorts, Vida Hotels and Resorts and Rove Hotels (joint venture with Meraas) – recorded an average occupancy of 90 per cent, higher than Dubai’s industry average in Q1 2018.

Emaar Hospitality Group also marked a historic milestone of 50 hotel projects in its portfolio currently, including 35 upcoming projects in the UAE and international markets, as well as 15 hotels and serviced residences that are operational in Dubai. In key openings, the Group opened Rove Dubai Marina in April 2018, and signed management agreements to operate hotels in several locations in Sharjah and Ras Al Khaimah. This is in addition to its expanding presence in international markets such as Saudi Arabia, Bahrain, Egypt, Turkey and The Maldives. -abdulbasit@theuaenews.com