Dubai / Emirates Business
Emaar Properties recorded revenue for first half of 2018 of AED11.474 billion ($3.124 billion), 46 percent higher than H1 2017 revenue of AED7.866 billion ($2.142 billion), led by strong construction progress and growth in malls business.
Emaar’s net profit grew by 18 percent to AED3.344 billion ($910 million), prior to considering the effect of IPO of Emaar Development, compared to the net profit of AED2.837 billion ($772 million) during the same period in 2017. The net profit for the first half of 2018 after considering impact of Emaar Development IPO in 2017 is AED2.981 billion ($812 million), an increase of 5 percent over same period last year.
Emaar Development, the UAE build-to-sell property development business majority-owned by Emaar Properties, recorded impressive sales of residential properties in the UAE, valued at AED6.229 billion during first six months of the year, highlighting strong investor appeal for Emaar Development’s projects. The total sales backlog of Emaar Development is AED38.502 billion ($10.482 billion) to be recognised as revenue in the coming years, underpinning the strong long-term fundamentals of the company.
Emaar’s malls, hospitality, leisure and entertainment businesses recorded revenue of AED3.536 billion ($963 million), 17 percent higher than the same period in 2017 at AED3.016 billion ($821 million), which represents 31 percent of the total revenue.
Revenue for the second quarter (April to June) 2018 was AED5,888 billion ($1,603 billion), 55 percent higher than the Q2 2017 revenue of AED3.794 billion ($1.033 billion). Net profit for Q2 2018 grew by 16 percent to AED1.679 billion ($457 million), prior to effect of Emaar Development’s IPO. Net profit after considering Emaar Development IPO was AED 1.480 billion ($403 million), 2 percent higher than the Q2 2017 net profit of AED1.453 billion ($396 million).
Mohamed Alabbar, Chairman of Emaar Properties, said: “The strong financial performance of the company during the half-year highlights the strength of Dubai’s economy and its appeal to international investors and tourists.”
“While our property business recorded positive growth with several new residential destinations launched in Dubai, our malls, hospitality, leisure and entertainment business benefited from the increase in tourist arrivals and boost in domestic spending.”
“Our focus continues to be on creating premium real estate assets and strengthening the competencies of our malls and hospitality business to add value to our stakeholders.”
In property business, Emaar has launched several residential projects in Dubai Creek Harbour, Dubai Hills Estate, Downtown Dubai and Emaar South, as well as the unveiled Emaar Beachfront, a private island destination. The launches recorded strong interest from international investors underlining Emaar’s reputation for superior design, build quality and timely delivery.
Emaar Malls reported H1 2018 revenue of AED2.103 billion ($573 million), 29 percent higher than the H1 2017 revenue of AED1.624 billion ($442 million). Emaar is further expanding its malls business with the launch of Dubai Square, a retail metropolis of the future in Dubai Creek Harbour, the six square kilometre mega-development only 10 minutes from the Dubai International Airport and Downtown Dubai. Ushering in the future of retail, the new precinct will also feature the Middle East’s largest-of-its-kind Chinatown.
Emaar is progressing in the construction of Dubai Hills Mall, a regional mall, in Dubai Hills Estate with 2 million square feet gross leasable area. The shopping mall assets of Emaar Malls – The Dubai Mall, Dubai Marina Mall, Souk Al Bahar, Gold & Diamond Park and community shopping centres – together welcomed over 67 million visitors during the first six months of the year, 3 per cent more than the 65 million visitor footfall in H1 2017.
Emaar’s hospitality, commercial leasing and entertainment businesses reported revenues of AED 1.433 billion ($390 million) during the first six months of the year, 3 percent higher than the H1 2017 revenue of AED1.392 billion ($388 million). Emaar Hospitality brands – Address Hotels + Resorts, Vida Hotels and Resorts and Rove Hotels — continue to record higher occupancy than Dubai’s industry average. Emaar Hospitality Group signed several management contracts in the UAE and in global markets, and now has over 50 hotel projects – operational and upcoming – in its portfolio currently.