Wednesday 28 September 2022

Emaar's nine-month profit surges 20pc to $1.2bn

DUBAI, November 12, 2017

Leading property developer Emaar Properties has recorded a Dh4.35 billion ($1.18 billion) net profit for the first nine months (January to September), up 20 per cent over the net profit of Dh3.62 billion ($986 million) for the same period in 2016.

Announcing the results, Emaar said the revenue for the first nine months was Dh13.452 billion ($4.182 billion), 21 per cent higher than the revenue of Dh11.103 billion ($3.023 billion) during the same period last year.

The Dubai developer’s build-to-sale real estate businesses in the UAE, Emaar Development, registered  revenues of Dh6.508 billion ($1.772 billion), accounting for 48 per cent of the total revenue, and an increase of 27 per cent compared to first nine months of 2016.

Emaar Development’s nine months 2017 net profit soared 32 per cent to hit Dh2.106 billion ($573 million) over the same period last year.

The Emirati real estate group’s shopping malls, hospitality and leisure businesses recorded revenues of Dh4.444 billion ($1.210 billion), similar to the first nine months of 2016. Its international property development operations contributed Dh2.559 billion ($697 million) to the total revenue, an increase of 51 per cent compared to Dh1.696 billion ($462 million) during the first nine months of 2016.

International property development revenue now represents 19 per cent of the total revenue, it stated.

Reporting quarter-on-quarter growth, Emaar’s net profit for the third quarter was Dh1.510 billion ($411 million), up 32 per cent over the net profit of Dh1.145 billion ($312 million) during Q3 2016.

Revenue for Q3 2017 was Dh5.586 billion ($1.521 billion), 45 per cent higher than the Q3 2016 revenue of Dh3.846 billion ($1.047 billion).

Emaar has announced its intention to proceed with the sale of 20 per cent of the existing shares of Emaar Development LLC, its build-to-sell property development business in the UAE via an initial public offering on the Dubai Financial Market.

On its solid perforance, Chairman Mohamed Alabbar said the company’s strategic focus was on creating long-term value for its shareholders.

"The partial listing of Emaar Development and the proposed special dividends to be distributed from its proceeds highlight the continued value that we bring to our shareholders. The confidence of our stakeholders and investors in our capabilities is our inspiration and driving force, as we continue to focus on creating premium real estate assets and strengthen our shopping malls and hospitality businesses," remarked Al Abbar.

"The impressive growth in sales of our Dubai residential property launches this year puts us in a strong position to generate strong cash flows for the coming years," stated the top official.

The sustained demand for projects in Dubai is a strong indicator of the investor trust in Dubai, which is today one of the fastest-growing hubs for business and leisure, he noted.

"With several mega-developments in various stages of development, we will continue to create iconic projects that add to the pride of the city," he added.

Al Abbar said a highlight of Emaar’s impressive growth this year has been the surge in sales of residential property in Dubai, which increased by 32 per cent over the same period last year to Dh15.361 billion ($4.182 billion).

Emaar now has an impressive domestic sales backlog of Dh40.806 billion ($11.110 billion) with an expected net cash flow to Emaar of about Dh18 billion ($4.9 billion).

Having delivered over 34,500 residential units in Dubai since 2002, Emaar has over 24,000 new developments under construction across eight master-planned projects in prime locations with over 80 per cent of these units already sold.

This year, Emaar recorded sustained growth in demand for its residential sales in Dubai Creek Harbour, Dubai Hills Estate, Emaar South, Downtown Dubai and Arabian Ranches II, said Al Abbar.

The company has also purchased a prime water front land in Dubai Harbour, the master-planned development well-positioned between Jumeirah Beach Residences and The Palm Jumeirah measuring about 950,000 sq ft with about 10 million sq ft GFA.

Emaar will build a series of elegantly designed high-rise residential apartments overlooking the Arabian Gulf in addition to a hospitality project to be operated by its Address Hotels + Resorts, which will also have branded residences, he stated.

The key launches in Q3 2017 included the new Golf Links neighbourhood, a first-of-its-kind villa community in Emaar South, 17 Icon Bay and Address Harbour Point in Dubai Creek Harbour and Park Ridge and Phase 3 of Sidra villas in Dubai Hills Estate. Emaar also announced the launch of an exhilarating tourist attraction – Sky Walk, a 200-m high cantilever observation corridor in the Address Sky View development in Downtown Dubai, said Emaar in its statement.

Emaar’s total property sales including international operations in the first nine months of 2017 was Dh17.638 billion ($4.802 billion) with an expanding total backlog of Dh50.543 billion ($13.761 billion). To date, Emaar has handed over 44,200 residential units in Dubai and international markets, it added.-TradeArabia News Service

Tags: Emaar | Dubai | real estate | profit | developer | Revenue |

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