Emaar Properties sales soars 52% to AED9.4b in H1 2019

Dubai / Emirates Business

Emaar Properties reported one of the highest half-year sales in Dubai at AED9.443 billion ($2.571 billion) during the first six months of 2019. This is 52 percent higher than the half-year 2018 sales of AED6.229 billion ($1.696 billion), underlining Emaar’s reputation as the first choice for investors and increasing its market share significantly in Dubai.
Led by the resilient performance of Emaar’s UAE build-to-sell property development business as well as malls and hospitality businesses, Emaar recorded H1 2019 revenue of AED11.569 billion ($3.150 billion) and net profit of AED3.110 billion ($847 million).
As of June 30, Emaar has a total sales backlog of AED49.188 billion ($13.392 billion), including international operations. This will be recognised as revenue in the next three to four years, highlighting the strong financial fundamentals of the company and the successful value-creation model for its stakeholders.
Mohamed Alabbar, Chairman of Emaar Properties, said: “The driving force of Emaar’s strong, consistent performance this year is the enhanced reputation of Dubai as the first choice among the leading global destinations for property investment. Our successful exp- ansion to malls and hospitality, which complements the tourism sector of Dubai, too generates significant revenue. As a catalyst of the economy, and with our commitment to creating value, we will continue to strengthen our three core businesses, especially by leveraging the power of digital connectivity and engagement.”
EMAAR DEVELOPMENT
Emaar Development rec-orded a net profit of AED1.382 billion ($376 million) and revenue of AED6.237 billion ($1.698 billion) for the first six months of the year.
During the first six months of 2019, Emaar Development launched 16 new projects across its mega developments in Dubai with a total project value of AED8.850 billion ($2.409 billion).
Highlighting Emaar’s strong brand value, the company sold over 60% of its units launched in H1 2019.
During Q2 2019, Emaar launched a new master-planned development Mina Rashid, an AED25 billion transformation of Mina Rashid area to build the world’s new sailing destination set by the histo-
ric Dubai Creek near Bur Dubai/Deira. P&O Marinas, a subsidiary of global trade enabler DP World — UAE Region, has made the land available to Emaar and will continue to develop world-class marinas and berthing facilities.
Emaar also recorded sell-out response to its launches in Arabian Ranches III, an extension of Dubai’s well-established Arabian Ranches destination as well as in Dubai Creek Harbour, Dubai Hills Estate, Emaar South, Emaar Beachfront and Downtown Dubai.
EMAAR MALLS AND OTHER BUSINESSES
Emaar Malls recorded 6 percent growth in revenue to AED2.227 billion ($606 million) during the first six months (January to June) of 2019. Net profit has increased by 3 percent to AED1.130
billion ($308 million) in the similar period.
Emaar Malls assets — The Dubai Mall, Dubai Marina Mall, Gold & Diamond Park, Souq Al Bahar and the Community Retail Centres — maintained strong occupancy level at 92 percent, and robust visitors arrival at 68 million during
H1 2019, 2 percent higher than H1 2018.
Emaar’s hospitality & leisure, entertainment and commercial leasing business contributed as much as AED1.318 billion ($359 million) to the total revenue. Along with Emaar Malls, these businesses posted a revenue of AED3.545 billion ($965 million), representing 31 percent of the total group revenue.
The hotels under Emaar Hospitality Group (including managed hotels) reported an average occupancy of 78 percent, higher than the industry average.
During the first six months of 2019, Emaar’s international operations contributed as much as 15 percent to the total revenue at AED1.743
billion ($475 million), 12 percent higher than the H1 2018 international operations revenue of AED1.550 billion ($422 million).
Emaar has a landbank of over 1.6 billion square feet in key markets and is the world’s largest property company outside China, with a brand value of over $2.7 billion.