Emaar Properties’ revenue grows by 37% to $1.5bn in Q1 2018
Taking into account the impact of Emaar Development’s IPO, Emaar Properties' Q1 2018 net profit was valued at $453m, 20% higher than Q1 2017’s $377m
Emaar Properties saw its revenue grow by 37% in Q1 2018, going up to $1.5bn (AED5.6bn) from $1.1bn (AED4.1bn) in the same period last year.
The developer’s net profit, meanwhile, increased by 20% increase compared to Q1 2017’s $377m (AED1.4bn), standing at $453m (AED1.7bn), before taking into account the impact of Emaar Development’s IPO.
The company revealed in a statement that with the IPO factored in, its net profit for the first three months of the year was valued at $409m (AED1.5bn), an 8.5% increase from the first quarter of 2017.
Earlier this week, Emaar Development reported that its property sales in the first three months of 2018 reached $1.1bn (AED3.9bn), while its backlog is now valued at $11bn (AED41bn).
According to Emaar Properties, it has distributed, in two tranches, a total of $1.1bn (AED4bn) in cash dividend from the proceeds of the IPO of Emaar Development to the company’s shareholders.
Emaar’s shopping malls, hospitality, and leisure and entertainment businesses together generated recurring revenue of $499m (AED1.8bn) during Q1 2018, accounting for 33% of the total group revenue. This is 15% higher than the businesses’ Q1 2017 revenue of $433m (AED1.6bn).
Mohamed Alabbar, chairman of Emaar Properties, said: “Our strategy to build long-term value for our shareholders is to focus on creating future cities that are relevant to our new generation, and to continue to drive the success of our hospitality, malls, leisure, and entertainment businesses.
“We are a customer-first company, and we focus on rapid construction and project delivery. Our achievements are the result of working and winning together, by being open to ideas, welcoming innovation, and promoting smart thinking.”
Emaar Malls posted $283m (AED1.04bn) in revenues in Q1 2018, a growth of 24% compared to the Q1 2017 revenue of $228m (AED836m).
The company opened the expanded Fashion Avenue of The Dubai Mall, as well as launched Dubai Hills Mall, with construction “progressing at a rapid pace”, Emaar added in its statement.
The company further noted that its Emaar Hospitality brands Address Hotels + Resorts, Vida Hotels and Resorts, and Rove Hotels enjoyed an average occupancy rate of 90%, reportedly higher than Dubai’s industry average in Q1 2018.