UAE: Emaar approves 15% cash dividend at AGM
Emaar Properties approved the distribution of cash dividends, amounting to $292m, to its shareholders at its annual general meeting
Emaar Properties PJSC has authorised the distribution of 15% cash dividend to its shareholders.
The approval of the dividends, equivalent to $292m (AED1.074bn), was announced during the company’s 19th annual general meeting (AGM).
The report of the Board of Directors on the activities and financial position of Emaar, the auditor’s report, and the balance sheet for 2016 were also approved during the AGM.
Ernst and Young was appointed as the auditor for 2017.
In 2016, Emaar recorded a net profit of $ 1.425bn (AED5.233bn), and revenues of $4.231bn (AED15.540bn). Recurring revenues from Emaar’s shopping malls, hospitality, entertainment, and leisure businesses was $1.627bn (AED5.976bn), 38% of the group’s total revenue.
Meanwhile, Emaar’s international operations logged a revenue of $726m (AED2.665bn), which was 17% of the group’s total revenue.
According to UAE state news agency, WAM, the developer’s real estate sales in Dubai also recorded notable growth during 2016, at $3.95bn (AED14.4bn). Sales across various international markets in 2016 were valued at $1.1bn (AED3.9bn).
Emaar Properties reportedly now has a backlog of $11.701bn (AED42.977bn), to be recognised in the next few years.
The last year also saw Emaar strengthening its land bank – particularly in Dubai – without capital investment, by going for joint ventures and strategic partnerships. The company’s land bank in the UAE now stands at over 2,400ha (24 million square metres), taking its total land bank across all markets to over 19,000ha (190 million square metres).
The group further reported that, also in 2016, Emaar Malls recorded a net profit of $510m (AED1.874bn) and a revenue of $879m (AED3.227bn), with its shopping malls welcoming 125 million visitors.
According to Emaar, the Dubai Mall has retained the distinction of being the world’s most visited retail and leisure destination, having welcomed 80 million visitors per annum for the last three consecutive years.
The hospitality and leisure, commercial leasing, and entertainment business of Emaar recorded $748m (AED2.749bn) in revenues in 2016. Average occupancy of hotels under Emaar Hospitality Group in Dubai was 85%, higher than the industry average.
Mohamed Alabbar, chairman of Emaar Properties, said: “Our ambition is to further strengthen customer loyalty and enhance our brand value. We will achieve this with our absolute focus on being a customer-centric organisation. We will also strengthen our financial performance by maintaining a robust balance sheet.
“Across all our businesses, we focus on bringing high-calibre professionals, while also shaping the next generation of young future leaders. Our new growth approach is led by the digital transformation of our operations, which will transform our company and ensure that we are future-ready.”