Global property developer Emaar Properties recorded 19 per cent growth in net profit to Dh3.620 billion ($986 million) during the first nine months (January to September) of 2016 compared to a net profit of Dh3.048 billion ($830 million) during the same period in 2015.
Revenue for the first nine months of 2016 was Dh11.103 billion ($3.023 billion). This is an increase of 13 per cent over the revenue of Dh9.849 billion ($2.681 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 Dh4.278 billion ($1.165 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 per cent of the total revenue of Emaar.
Emaar’s international operations recorded revenue of Dh1.696 billion ($462 million) during the first nine months of 2016. This accounts for 15 per cent of the total revenue.
With total sales of Dh14.689 billion ($3.999 billion) during the first nine months of 2016, which is 28 per cent higher than the sales of Dh11.442 billion ($3.115 billion) during the same period last year, Emaar now has a backlog of Dh47.576 billion ($12.953 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 third-quarter 2016
During the third quarter (July to September) 2016, Emaar recorded a net profit of Dh1.145 billion ($312 million), which is 36 per cent higher than the Q3 2015 net profit of Dh843 million ($230 million).
Revenue for Q3 2016 was Dh3.846 billion ($1.047 billion), 16 per cent higher than the Q3 2015 revenue of Dh3.329 billion ($906 million).
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.”
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 Dh11.601 billion ($3.158 billion). This is 54 per cent higher than the sales of Dh7.513 billion ($2.045 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, the shopping malls & retail business majority-owned by Emaar Properties, recorded a net profit of Dh1.422 billion ($387 million) during the first nine months of 2016, 16 per cent higher than Dh1.221 billion ($332 million) recorded in the same period last year. Revenue during the first nine months of 2016 from the malls business is Dh2.392 billion ($651 million), 10 percent higher than the same period last year.
The hospitality & leisure, commercial leasing and entertainment business of Emaar recorded revenues of Dh1.886 billion ($513 million) 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 per cent 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 Dh165.7 billion ($45.1 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.