Emaar profit surges 21pc to $699m in 2013
Dubai, February 17, 2014
Top developer Emaar Properties has recorded a full-year net profit of Dh2.57 billion ($699 million) in 2013, up 21 per cent over Dh2.119 billion the previous year led by Dubai’s robust economic growth and surging investor confidence.
The builder of the world's tallest tower Burj Khalifa, Emaar said its annual revenue surged 25 per cent to Dh10.328 billion compared to Dh8.24 billion the year before.
This strong performance was underlined by recurring revenues from the company’s shopping malls & retail and hospitality & leisure business units, which together contributed Dh4.8 billion to FY’13 revenue, or 46 per cent of the total, said the Dubai-based developer in its statement.
This is an increase of 17 per cent in from the revenues from the two businesses during 2012, which accounted for Dh4.096 billion, it stated.
Emaar’s property business generated total revenue at Dh5.528 billion. Revenues from the company’s global operations in 2013 were Dh1.167 billion, representing 11 per cent of the total revenue.
The fourth quarter (October to December) revenues soared to Dh2.762 billion, up 18 per cent compared to the previous quarter of Dh2.347 billion, said the statement.
The company's net profit for the fourth quarter surged 30 per cent to hit Dh756 million compared to Dh581 million in the previous quarter and 48 per cent higher than Dh512 million the previous year.
Commenting on the results, chairman Mohamed Alabbar said: "One of the defining aspects of Emaar’s strong financial performance in 2013 is the positive contribution of our developments to the local economy. Downtown Dubai, our flagship mega-development, has energised the property, retail, tourism and hospitality sectors, in addition to creating over 50,000 jobs since its launch."
"Emaar’s fundamental financial strength is underscored by our diversified growth model, with the shopping malls and hospitality business contributing significantly to the total revenue," he observed.
“With the economy gaining further traction following the successful bid by the UAE to host the World Expo 2020 in Dubai, the city is entering a new phase of dynamic growth," stated Alabbar.
The Dubai ruler, he said, has outlined a clear development strategy for the city and Emaar will complement this through its focus on developing integrated neighbourhoods that meet the emirate’s future needs including the world-class infrastructure for hosting World Expo 2020.
"Our strong pipeline of projects, which reflect our commitment to creating long-term value for our stakeholders, will serve as a key growth driver for the company and for Dubai,” noted Alabbar.
According to him, Emaar’s leasing & retail business recorded a total revenue of Dh3.285 billion in 2013, up 21 per cent over shopping malls & retail revenue of Dh2.719 billion the year before.
Driving this growth, The Dubai Mall, Emaar’s flagship mall, welcomed over 75 million visitors, a growth of 15 per cent over 2012. The mall’s 1,200 plus retail outlets recorded a 26 per cent rise in sales during 2013 compared to the previous year.
According to market estimates, more than 50 per cent of all luxury goods sold in Dubai are purchased at the mall.
With a portfolio of 12 hotels and resorts consisting of over 1,900 rooms, Emaar’s hospitality & leisure business recorded revenues of Dh1.515 billion in 2013, up 10 per cent over Dh1.37 billion the previous year, said Alabbar. The Address Hotels + Resorts maintained an average occupancy of 84 per cent during 2013, similar to that in 2012.
In 2013, Emaar announced the launch of a diverse portfolio of serviced residences to be managed by its flagship hotel brand, The Address Hotels + Resorts. Emaar also launched the Vida Hotels and Resorts, its new hospitality concept targeting a new generation of business executives, entrepreneurs and leisure travellers.
To support Dubai’s 'Tourism Vision 2020' strategy to welcome over 20 million annual visitors by the turn of the decade, Alabbar said Emaar has also joined hands with Meraas Holding, a leading Dubai-based development company, to launch a new hotel brand, ‘Dubai Inn’ focused on the affordable segment, said its chairman.
In 2013, Emaar marked the launch of several new major projects in Dubai including The Address Residence Fountain Views I, II and III; The Address Residence Sky View and Burj Vista in Downtown Dubai; The Hills and Vida Residence in Emirates Living; and Palma and Rosa villas in Arabian Ranches.
Emaar also unveiled The Opera District, featuring the iconic Dubai Opera, a 2,000-seat multi-venue performing arts centre, in Downtown Dubai, he noted.
The launches gained solid response from customers in Dubai and other international markets. The total value of sales in Dubai for 2013 is Dh12 billion, which is nearly three times compared to the sales in 2012, he added.-TradeArabia News Service