Emaar records revenue of $1.1bn in Q1 2017
Emaar’s international operations recorded Q1 2017 revenue of $219m, an increase of 62% compared to Q1 2016 revenue of $136m
Emaar Properties reported a net profit of $377m (AED1.4bn) in the first quarter of 2017, an increase of 15% over the same period last year at $328m (AED1.2bn).
Total revenue for earned in Q1 2017 was $1.1bn (AED4bn), an increase of 15% over Q1 2016 revenue of $961m (AED3.5bn).
Recurring revenues from the malls, hospitality, entertainment, and leisure businesses of Emaar were $433m (AED1.5bn) in Q1 2017 contributing 39% of the total group revenue.
Emaar’s international operations recorded Q1 2017 revenue of $219m (AED806m), an increase of 62% compared to Q1 2016 revenue of $136m (AED499m), and accounting for 20% of the total group revenue.
At the annual general meeting of Emaar Properties, shareholders approved distribution of cash dividend of $292m (AED1bn), equivalent to 15% of the share capital.
Mohamed Alabbar, chairman of Emaar Properties, said that the positive results achieved by Emaar across its operations underlines the focus of the company on continued value creation for its stakeholders.
“Along with our core business of creating premium real estate in Dubai and other international markets, our malls, hospitality, and leisure businesses have also recorded growth.
“We have seen an increase in property sales in Dubai, and we are on track with our construction milestones.”
Emaar recorded property sales of $1.6bn (AED6bn) during Q1 2017 in Dubai. This is 44% higher than the value of property sales in Dubai during the same period last year at $1.1bn (AED4.1bn), and 115% higher than the figures for Q4 2016 at $765mn (AED 2.8bn).
The group now has a backlog of $12.6bn (AED46.2bn) to be recognised as revenue in the next few years, according to a company statement.
The property business in Dubai was highlighted by new residential launches in Downtown Dubai, Dubai Marina, and joint venture projects under Dubai Hills Estate, Dubai Creek Harbour, and Emaar South.
Emaar accomplished a key milestone with the completion of the pile foundations for the new global skyscraper, The Tower, designed by Santiago Calatrava, in Dubai Creek Harbour.
Emaar has also achieved significant construction progress on the projects in Dubai Hills Estate, which now has green avenues, lakes, waterbodies, and roads.
The new property launches in Q1 2017 includes Downtown Views II, located in the Zabeel area of Downtown Dubai, Vida Residences in Dubai Marina, Creek Gate and Harbour Gate in Dubai Creek Harbour, and Golf Views apartments and Urbana III stacked townhouses in Emaar South.
During Q1 2017, Emaar Malls recorded revenues of $228m (AED836m), similar to Q1 2016 revenue of $227m (AED833m).
Net profit from the malls business during Q1 2017 was $147m (AED539m), similar to Q1 2016 net profit of $144m (AED529m) and 19% higher than Q4 2016 net profit of $123m (AED452m).
Emaar’s hospitality, commercial leasing, and entertainment businesses reported revenues of $206m (AED756m) during Q1 2017, an increase of 5% over the same period last year at $197m (AED722m).
Emaar’s hospitality segment marked the launch of two new hotels in Q1 2017 including Address Boulevard and Rove Healthcare City.
A midscale brand, Rove Hotels is being developed as a joint venture with Meraas Holding with plans to roll out 10 hotels in Dubai by 2020.
The Address branded hotels, under Emaar Hospitality Group, recorded an average occupancy of 92% during Q1 2017, higher than the industry average.
Emaar is in the course of expanding its hospitality business with 26 upcoming projects in the UAE, Turkey, Egypt, Saudi Arabia, and Bahrain.