Emaar reveals $678mn profit for first nine months
Dubai-based developer, in which the government has a 31.2% stake, also revealed a 21% rise in third quarter net profit of $206mn.
Emaar Properties has reported a net profit of $678mn for the first nine months of 2014 – 37% higher than the corresponding period last year.
The Dubai-based developer, in which the government has a 31.2% stake, also revealed a 21% rise in third quarter net profit of $206mn.
Mohamed Alabbar, chairman of Emaar Properties, said: “This has been a record nine-month performance for Emaar as we delivered on our promise of strengthening shareholder value. We have set an industry milestone by announcing a total dividend of AED17.12bn ($4.66bn) this year through our strategic growth initiatives including the distributions approved by the shareholders at the beginning of this year and the dividends proposed for distribution before the end of this year.
“The successful listing of our malls business is testament to our vision to develop stand-alone profit centres of our diverse businesses in Dubai and international markets, creating long-term value for our stakeholders.”
Emaar Malls recorded a total revenue of AED1.898bn ($517mn) during the first nine months of 2014. At 27% of Emaar’s total revenue, this is 15% higher than the nine-month 2013 shopping malls revenue of AED1.646bn ($448mn). The growth in malls business was underlined by its flagship asset, The Dubai Mall, which welcomed over 58mn visitors, 5% higher than the 55mn recorded in the first nine months of 2013.
Emaar’s hospitality and leisure business recorded a nine-month revenue of AED1.196bn ($326mn), 17% of total revenue, by drawing on the upbeat performance of Dubai’s tourism sector. This is 13% higher than the nine-month 2013 hospitality & leisure revenue of AED1.059bn ($288mn). The Address Hotels + Resorts, Emaar’s flagship hotel brand, recorded an average occupancy of 84% through the same period, an industry-best.
The recurring revenue businesses (malls, hospitality and retail) accounted for AED3.808bn ($1.037bn), which is 54% of Emaar’s total revenue during the first nine months of 2014. The recurring revenue businesses have recorded steady growth in their share of total revenue accounting for 49% in full-year (FY) 2012, 46% in FY2013 and 54% for nine months of 2014.
The total sales value of Emaar’s projects in Dubai was AED10.5bn ($2.9bn), 15% higher than the nine-month 2013 property sales of AED9.1bn ($2.5bn).
The company’s international operations also reported positive growth through the first nine months of the year contributing a revenue of AED1.334bn ($363mn), 73% higher than the nine-month 2013 international revenue of AED770mn ($210mn).
The company’s international operations now account for 19% of the total revenue.
With over 214mn m2 of land bank internationally, Emaar’s impressive growth overseas was highlighted by sales of over AED3.087bn ($840mn) from Egypt during the first nine months of 2014, a 140% increase over the same period last year. Emaar’s operations in Turkey, Saudi Arabia, Lebanon, Morocco, USA and Pakistan also recorded impressive growth.