Emaar Q1 profit up 55pc; hits $235m
Dubai, April 22, 2014
Emaar Properties, recorded a net profit of Dh863 million ($235 million) during the first quarter (Q1) of 2014, marking a 55 per cent increase over the Q1 2013 net profit of Dh556 million.
It is also 14 per cent higher than the fourth quarter 2013 net profit of Dh756 million ($206 million).
The revenue for Q1 2014 is Dh2.256 billion ($614 million), 7 per cent higher than Q1 2013 revenue of Dh2.110 billion ($574 million).
Emaar’s shopping malls & retail and hospitality & leisure businesses together contributed Dh1.346 billion in recurring revenues during Q1 2014, nearly 60 per cent of the total revenue and 15 per cent higher than Q1 2013 revenues of Dh 1.166 billion.
Mohamed Alabbar, chairman of Emaar Properties, said: “The increase in tourist arrivals to Dubai and the positive market sentiment have catalysed the growth of our shopping malls and hospitality business too, which contribute significantly to our recurring revenues.
“This year, led by our strategy to monetise key performing assets, expand to high-growth international markets and develop prime real estate assets in Dubai, we will continue to focus on delivering long-term value for our shareholders and in providing exceptional service standards to our customers.”
Emaar’s shopping malls and retail business contributed Dh863 million, over 38 per cent of Emaar’s total revenue in Q1 2014. This is 15 per cent higher than Q1 2013 revenues of Dh749 million. The Dubai Mall, Emaar’s flagship mall asset, welcomed nearly 21 million visitors in the first three months of the year.
Emaar plans to list up to 25 per cent of the Emaar Malls Group equity through a secondary offering of shares. The funds thus raised, estimated to be between Dh8 to 9 billion, will primarily be distributed as dividend to the company’s shareholders.
The hospitality & leisure business of Emaar recorded Q1 2014 revenue of Dh483 million, over 21 per cent of the company’s total revenue. This is 16 per cent more than the Q1 2013 revenue of Dh417 million.
The flagship Address Hotels + Resorts reported average occupancy of 92 per cent during the first three months of this year. Emaar strengthened its hospitality portfolio with the launch of serviced apartments under The Address Hotels + Resorts and Vida Hotels and Resorts in Dubai.
New launches, robust sales
Q1 2014 was underscored by several new project launches by Emaar in Dubai with strong investor interest from international markets. The value of total sales during the quarter is Dh5.917 billion, 94 per cent higher Dh3.043 billion sales during same period in 2013.
In international project sales, Egypt recorded strong increase in value at Dh546 million during the first three months of the year. Significant investor response was also recorded for Emaar’s projects in Pakistan, with the value of sales in Q1 2014 at Dh235 million.
As part of its international expansion, Emaar signed a Memorandum of Understanding with Abdul Latif Jameel, Saudi Arabia’s leading business group, to develop integrated property projects in the Kingdom. – TradeArabia News Service