The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Dubai / WAM
Emaar Properties recorded a net operating profit of AED 5.704 billion during full-year (January to December) 2017, a growth of 16 percent over the FY 2016 net operating profit of AED 4.917 billion. Total revenue for FY 2017 increased by 21 percent to AED18.812 billion, over FY 2016 revenue of AED 15.540 billion.
In 2017, Emaar successfully listed its UAE build-to-sell property development business, Emaar Development, by selling its 20 percent stake through IPO and raised AED4.824 billion and also announced AED4 billion of exceptional dividend from the proceeds of the IPO.
Emaar Development, majority-owned by Emaar Properties, reported total revenue of AED 8.863 billion, a growth of 28 per cent compared to AED 6.899 billion in FY 2016. The Company also achieved record sales of AED18.03 billion in FY 2017, an increase of 25 per cent over FY 2016 sales of AED14.4 billion. Emaar Development now has a sales backlog of around AED41 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 AED6.351 billion representing 34 percent of the total revenue of FY 2017, 6 percent higher than FY 2016 revenue of AED5.976 billion.
Revenue from Emaar’s international development operations was AED3.603 billion during FY 2017, a growth of 35 per cent over FY 2016 revenue of AED 2.665 billion.
; 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 AED 5.360 billion (US$ 1.459 billion), 21 per cent higher than Q4 2016 revenue of AED 4.437 billion (US$ 1.208 billion). Emaar recorded a net operating profit of AED 1.357 billion (US$ 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 FY 2017 revenue of AED 3.629 billion (US$ 988 million), a growth of 12 per cent over FY 2016 revenue of AED 3.227 billion (US$ 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 FY 2016.
Emaar’s hospitality & leisure, commercial leasing and entertainment businesses recorded revenue of AED 2.722 billion (US$ 741 million) in the FY 2017.