Strong sales boost Emaar profit by 15% in Q1

Dubai - Property sales in Dubai surges 44% to reach Dh6.049b

Emaar Properties on Sunday said its 2017 first-quarter net profit rose 15 per cent to Dh1.384 billion ($377 million) from Dh1.205 billion in the same quarter last year as property sales in Dubai surged by 44 per cent to reach Dh6.049 billion.
In a statement, the region's leading property developer said its total revenue for January-March 2017 quarter also climbed 15 per cent to Dh4.072 billion from Dh3.529 billion in the similar quarter last year.
Recurring revenues from the malls, hospitality, entertainment and leisure businesses of Emaar were Dh1.592 billion in the first quarter, contributing 39 per cent of the total group revenue.
During the period, Emaar's international operations recorded a revenue of Dh806 million, an increase of 62 per cent over the year-ago quarter's Dh499 million, accounting for 20 per cent of the total group revenue. At the annual general meeting of Emaar Properties, shareholders have approved to distribute a cash dividend of Dh1.074 billion, equivalent to 15 per cent of the share capital.
 
Focus on value creation
Mohamed Alabbar, chairman of Emaar Properties, said that the positive results achieved by Emaar across its operations underlines the focus of the company on continued value creation for its stakeholders.
"Along with our core business of creating premium real estate in Dubai and other international markets, our malls, hospitality and leisure businesses have also recorded growth. This is driven by our new customer-oriented digital strategy that helps optimise our resource use and enhance efficiency," he said.
"We have seen an increase in property sales in Dubai, and we are on track with our construction milestones. Emaar's performance underpins the positive economic environment of Dubai led by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai."
 
Strong property sales
Emaar recorded robust property sales of Dh6.049 billion during the first quarter in Dubai. This is 44 per cent higher than the value of property sales in Dubai during the year-ago period's Dh4.194 billion, and 115 per cent higher than the previous quarter's Dh2.810 billion. The group now has a backlog of Dh46.245 billion to be recognised as revenue in the next few years.
The property business in Dubai was highlighted by new residential launches in Downtown Dubai, Dubai Marina and joint venture projects under Dubai Hills Estate, Dubai Creek Harbour and Emaar South.
Emaar accomplished a key milestone with the completion of the pile foundations for the new global icon The Tower, designed by Santiago Calatrava, in Dubai Creek Harbour. Emaar has also achieved significant construction progress on the projects in Dubai Hills Estate, which now has green avenues, lakes, waterbodies and roads.
The new property launches in the first quarter include Downtown Views II, located in the Zabeel area of Downtown Dubai; Vida Residences in Dubai Marina; Creek Gate and Harbour Gate in Dubai Creek Harbour; and Golf Views apartments and Urbana III stacked townhouses in Emaar South.
With 190 million sqm of land bank in the UAE and key international markets, Emaar assets are valued at around Dh179 billion.
 
Expanding malls, hospitality
During the first quarter, Emaar Malls recorded revenues of Dh836 million, similar to the Dh833 million a year ago.
Net profit from the malls business during the period was Dh539 million, similar to the first quarter of 2016's Dh529 million and 19 per cent higher than the previous period's Dh452 million.
Emaar's hospitality, commercial leasing and entertainment units reported revenues of Dh756 million during the first quarter, an increase of five per cent over the same period last year at Dh722 million.
- business@khaleejtimes.com