Emaar Properties records 19% growth in net profit in 9 months

Dubai / Emirates Business

Global property developer Emaar Properties recorded 19 per cent growth in net profit to AED 3.620 billion during the first nine months (January to September) of this year compared to a net profit of AED 3.048 billion during the same period in 2015.
Revenue for the first nine months of 2016 was AED11.103 billion. This is an increase of 13 percent over the revenue of AED9.849 billion during the same period last year.
The combined revenue from the shopping malls & retail and hospitality & leisure businesses during the first nine months of 2016 stood at AED 4.278 billion, similar to same period in 2015 despite the ongoing development at The Address Downtown Dubai hotel this year. Today, these two business segments account for 39 percent of the total revenue of Emaar.Emaar’s international operations recorded revenue of
AED 1.696 billion during the first nine months of 2016. This accounts for 15 percent of the total revenue.
With total sales of AED 14.689 billion during the first nine months of 2016, which is 28 percent higher than the sales of AED 11.442 billion during the same period last year, Emaar now has a backlog of AED 47.576 billion to be recognised in the next few years. This demonstrates the financial fundamentals of the company and the continued value it will
create for its stakeholders.

Positive growth in Q3
During the third quarter (July to September) 2016, Emaar recorded a net profit of AED 1.145 billion, which is 36 percent higher than the Q3 2015 net profit of AED 843 million.
Revenue for Q3 2016 was AED 3.846 billion, 16 percent higher than the Q3 2015
revenue of AED 3.329 billion.

A smart company
for the future
Mohamed Alabbar, Chairman of Emaar Properties, said: “Our focus for 2016 has been to maximise operational efficiency and drive profitability, while strengthening our revenue stream through new developments in prime real estate assets, malls and hotels in Dubai.
“The vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, is to create a smart city of the future. This has always been our inspiration to push our boundaries and be more innovative. Dubai Creek Harbour, Dubai Hills Estate and the ongoing expansion of Downtown Dubai are examples of our commitment to create city hubs with digital lifestyle features that meet the aspirations of the future generation.”
Alabbar said that Emaar is drawing on the potential of digital technologies to enhance efficiency and customer service. “Across all our operations – from project design to development and after-sales service, we are being even more customer-oriented. With technology changing modern lifestyles, we aim to be more agile, responsive and relevant to ensure that we create long-term value for our stakeholders.”

Property sales in Dubai
Emaar recorded significant growth in property sales in Dubai, its primary market. During the first nine months of 2016, sale from its launches in its home-market accounted for AED 11.601 billion. This is 54 percent higher than the sales of AED 7.513 billion in Dubai during the same period in 2015.
The growth in investor base was underpinned by new residential launches in Dubai Creek Harbour, one of the world’s largest mega-developments; Dubai Hills Estate, a premium lifestyle community; and in Downtown Dubai. Emaar unveiled new cultural and touristic icons with the launch of The Tower in Dubai Creek Harbour and the opening of Dubai Opera in Downtown Dubai. Both have catalysed sales of residences in the two communities.
Among the new launches this year are: The Address Residences Dubai Opera, Act One Act Two and Il Primo in Downtown Dubai, premium Fairway & Parkway Vistas and Sidra villas in Dubai Hills Estate, 52/42 prime waterfront development in Dubai Marina; Creek Horizon and Harbour Views in Dubai Creek Harbour.
Emaar also commenced the sales on Emaar South its newest mega-development in Dubai South, just minutes from the Al Maktoum International Airport and in easy proximity to the Expo 2020 Dubai site, with the launch of Urbana stacked townhouses. A dedicated golf district, the nearly 7 sq km Emaar South is one of the key components of the newly planned city. Featuring more than 15,000 residences, the project will be a smart neighbourhood that will also create several hundred new jobs in the hospitality,
retail and leisure sectors.

Growth in recurring revenues
Emaar Malls (DFM: EMAARMALLS), the shopping malls & retail business majority-owned by Emaar Properties, recorded a net profit of AED 1.422 billion during the first nine months of 2016, 16 percent higher than AED 1.221 billion recorded in the same period last year.
Revenue during the first nine months of 2016 from the malls business is AED 2.392 billion, 10 percent higher than the same period last year.
The hospitality & leisure, commercial leasing and entertainment business of Emaar recorded revenues of
AED 1.886 billion during the first nine months of 2016.
The average occupancy in the flagship Address + Resorts in Dubai during the first nine months of 2016 was 85 per cent, higher than the industry average and 2 percent higher than the same period last year. The Address Hotels + Resorts and Vida Hotels and Resorts are expanding its footprint to Bahrain, Egypt and Turkey to operate hotels and serviced residences, as well as across the UAE.
Emaar launched Rove Hotels, a joint venture with Meraas Holding, and opened its first property – Rove Downtown Dubai – to strong guest response. In all, 10 Rove Hotels will open in Dubai, adding over 3,700 rooms, in central locations across the city, just in time for Expo 2020 Dubai. The Address Boulevard Dubai, a brand new addition to the portfolio will open soon, while two new Rove Hotels are expected to be unveiled before year end.
The opening of Dubai Opera, a multi-format venue for opera, theatre, concerts, art exhibitions, orchestra and film, has also energised the hospitality business, in addition to adding to the civic pride of the city.
Emaar has assets valued at over AED 165.7 billion and a land bank of 196 million sq. m in Dubai and international markets. Emaar has handed over more than 40,865 homes to date, cementing its strong track-record in project delivery.