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Emaar Properties 2017 operating profit tops $1.5bn

DUBAI, February 15, 2018

Emaar Properties recorded a net operating profit of Dh5.704 billion ($1.553 billion) during 2017, a growth of 16 per cent over the figure of Dh4.917 billion ($1.339 billion) posted in the previous year.

Total revenue for 2017 increased by 21 per cent to Dh18.812 billion ($5.122 billion), over 2016 revenue of Dh15.540 billion ($4.231 billion), reported Emirates news agency Wam.

In 2017, Emaar successfully listed its UAE build-to-sell property development business, Emaar Development, by selling its 20 per cent stake through IPO and raised Dh4.824 billion ($1.313 billion) and also announced Dh4 billion ($1.089 billion) of exceptional dividend from the proceeds of the IPO.

Emaar Development, majority-owned by Emaar Properties, reported total revenue of Dh8.863 billion ($2.413 billion), a growth of 28 per cent compared to Dh6.899 billion ($1.878 billion) in FY 2016. The Company also achieved record sales of Dh18.03 billion ($4.91 billion) in FY 2017, an increase of 25 per cent over FY 2016 sales of Dh14.4 billion ($3.92 billion). Emaar Development now has a sales backlog of around Dh41 billion ($11 billion) as of December 31, 2017, highlighting the robust fundamentals of the company with more than 24,000 residential units to be delivered over the coming years.

Underpinning the success of Emaar’s business segmentation, its shopping malls, hospitality and leisure and entertainment businesses together accounted revenue of Dh6.351 billion ($1.729 billion) representing 34 per cent of the total revenue of FY 2017, 6 per cent higher than FY 2016 revenue of Dh5.976 billion ($1.627 billion).

Revenue from Emaar’s international development operations was Dh3.603 billion ($981 million) during FY 2017, a growth of 35 per cent over FY 2016 revenue of Dh2.665 billion ($726 million); global operations now account for 19 per cent of Emaar’s total revenue.

During the fourth quarter (October to December) 2017, Emaar Properties recorded a revenue of Dh5.360 billion ($1.459 billion), 21 per cent higher than Q4 2016 revenue of Dh4.437 billion ($1.208 billion). Emaar recorded a net operating profit of Dh1.357 billion ($369 million) during the same period, 5 per cent higher than the net operating profit earned during fourth quarter 2016.

Mohamed Alabbar, chairman of Emaar Properties, said that the company’s strategic growth initiatives, underlined by the Emaar Development IPO as well as the expansion of its shopping malls and hospitality business, highlight Emaar’s commitment to long-term value creation for its stakeholders.

"The growth of our businesses in 2017, across all markets, reflects the success of our focus on delivering high quality lifestyle choices. Setting benchmarks in design, build quality and the choice of amenities, our property developments are sought-after by investors while our malls business is setting retail trends by serving as retail and leisure destinations of choice. Emaar’s hospitality and leisure operations have also gained further traction through geographic expansion and the creation of innovative experiences," said Alabbar.

A driver of the company’s growth, Emaar’s property development business achieved new milestones in project delivery during 2017. To date, the company has handed over 45,900 residential units in Dubai and global markets since 2002, with over 34,800 units delivered in UAE alone.

In 2017, Emaar rolled out many new residential launches in Dubai Creek Harbour, Dubai Hills Estate, Emaar South, Arabian Ranches II and Downtown Dubai, all of them reporting strong investor response.

Continuing its track-record of on-schedule project management, Emaar has made significant progress in the construction of Dubai Creek Tower, the new global icon that will create a new skyline for the nation.

Emaar Malls, the shopping malls and retail business majority-owned by Emaar Properties, recorded 2017 revenue of Dh3.629 billion ($988 million), a growth of 12 per cent over FY 2016 revenue of Dh3.227 billion ($879 million). Together, the malls and retail centres of Emaar Malls welcomed 130 million visitors in 2017, 4 per cent higher than the visitor turnout of 125 million during 2016.

Emaar’s hospitality & leisure, commercial leasing and entertainment businesses recorded revenue of Dh2.722 billion ($741 million) in 2017.

Tags: Emaar Properties | operating profit | 2017 |

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