Emaar posts Dhs 4.347b net profit in nine months
DUBAI: Emaar Properties recorded a net profit of Dhs4.347 billion ($1.184 billion) during the first nine months (January to September) 2017, registering an increase of 20 per cent over the net profit of Dhs3.620 billion ($986 million) during the same period in 2016. Revenue for the first nine months was Dhs13.452 billion ($4.182 billion), 21 per cent higher than the revenue of Dhs11.103 billion ($3.023 billion) during the same period last year.
Emaar’s build-to-sale real estate businesses in UAE, Emaar Development, recorded revenues of Dhs6.508 billion ($1.772 billion), accounting for 48 per cent of the total revenue, and an increase of 27 per cent compared to first nine months of 2016. Emaar Development LLC’S nine months 2017 net profit of Dhs2.106 billion ($573 million) marks an increase of 32 per cent over the same period last year.
Emaar’s shopping malls, hospitality and leisure businesses recorded revenues of Dhs4.444 billion ($1.210 billion), similar to the first nine months of 2016. Emaar’s international property development operations contributed Dhs2.559 billion ($697 million) to the total revenue, an increase of 51 per cent compared to Dhs1.696 billion ($462 million) during the first nine months of 2016. International property development revenue now represents 19 per cent of the total revenue.
Reporting quarter-on-quarter growth, Emaar’s net profit for the third quarter (July to September) 2017 was Dhs1.510 billion ($411 million), a growth of 32 per cent over the net profit of Dhs1.145 billion ($312 million) during Q3 2016. Revenue for Q3 2017 was Dhs5.586 billion ($1.521 billion), 45 per cent higher than the Q3 2016 revenue of Dhs3.846 billion ($1.047 billion).
Emaar has announced its intention to proceed with the sale of 20 per cent of the existing shares of Emaar Development, its build-tosell property development business in the UAE via an initial public offering on the Dubai Financial Market.
Mohamed Alabbar, Chairman of Emaar Properties, said the company’s strategic focus is on creating long-term value for its shareholders. “The partial listing of Emaar Development and the proposed special dividends to be distributed from its proceeds highlight the continued value that we bring to our shareholders. The confidence of our stakeholders and investors in our capabilities is our inspiration and driving force, as we continue to focus on creating premium real estate assets and strengthen our shopping malls and hospitality businesses.”
He added: “The impressive growth in sales of our Dubai residential property launches this year puts us in a strong position to generate strong cash flows for the coming years. The sustained demand for projects in Dubai is a strong indicator of the investor trust in Dubai, which is today one of the fastest-growing hubs for business and leisure, led by the guidance and strategic vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai. With several mega-developments in various stages of development, we will continue to create iconic projects that add to the pride of the city.”
Emaar’s strategic focus is on creating long-term value for its shareholders.