Hospitality, malls business lift Emaar’s H1 profit by 15%
dubai — Emaar Properties recorded a growth in net profit by 15 per cent to Dh2.8 billion during the first half of 2017 compared to Dh2.5 billion during the same period last year.
Its H1 2017 revenues totalled Dh7.9 billion, an increase of eight per cent over H1 2016 revenue of Dh7.3 billion.
Recurring revenue from Emaar’s shopping malls and retail, hospitality and leisure, commercial leasing and entertainment businesses in H1 2017 is Dh3 billion, which represents 38 per cent of its total revenue.
Revenue from international development recorded a growth of 64 per cent in H1 2017 to Dh1.7 billion, compared to H1 2016 figures of Dh1 billion. This was underpinned by significant progress in projects achieved in key markets, including Egypt, Turkey, India and Saudi Arabia, among others. Emaar’s international development now contribute 22 per cent to the total group revenue, the developer said in a statement on Monday.
Emaar’s shares were down 0.6 per cent to Dh8.3 in a general negative market on Monday.
Q2 performance
In the second quarter of 2017, Emaar recorded a net profit of Dh1.5 billion, an increase of 14 per cent over Q2 2016 net profit of Dh1.3 billion.
Mohamed Alabbar, chairman of Emaar Properties, said the positive performance builds on Emaar’s ongoing focus on project delivery.
“As a year-round tourism and retail destination, and with a focus on infrastructure development, the UAE has evolved as a global business and leisure hub, and through our projects, we are contributing to the nation in driving sustained economic growth.”
Emaar distributed a cash dividend of 15 per cent of its share capital, equivalent to Dh1.1 billion.
Emaar has announced a plan to list its UAE real estate development business through up to 30 per cent share offering on the Dubai Financial Market. The funds raised through the sale of equity will be primarily distributed as dividends to shareholders.
H1 property sales
During the first six months of 2017, Emaar recorded property sales in Dubai worth Dh10.8 billion, 22 per cent higher than Dh8.9 billion during H1 2016. This growth was led by residential launches in Emaar’s projects, including Dubai Creek Harbour, Downtown Dubai, Dubai Hills Estate and Emaar South.
Emaar now has a backlog of Dh49.5 billion, including a backlog of over Dh40 billion in Dubai, to be recognised in the next few years. Emaar Malls, the shopping malls and retail business majority owned by Emaar Properties, reported H1 2017 net profit of Dh1 billion, three per cent higher than H1 2016 net profit of Dh987 million. Emaar Malls’ revenue in H1 2017 is Dh1.6 billion, similar to H1 2016 revenue of Dh1.6 billion.
The hospitality and leisure, commercial leasing and entertainment businesses of Emaar recorded H1 2017 revenue of Dh1.4 billion, seven per cent higher than the H1 2016 revenue of Dh1.3 billion.
In the first half of 2017, it opened three properties — Address Boulevard in Downtown Dubai, Rove Healthcare City and Rove Trade Centre. Occupancy levels at Address Hotel + Resorts were 82 per cent, higher than the industry average. The hospitality business has also expanded its geographic footprint with management agreements to operate hotels in Saudi Arabia, Bahrain, Egypt and Turkey. The group has 27 upcoming projects in the UAE and international markets.
— waheedabbas@khaleejtimes.com