Emaar Properties’ Q1 net profit rises to Dh657m

Emaar Properties recorded an 8.0 per cent growth in net profit to Dh657 million for the first quarter 2021 compared to the net profit of Dh609 million during the same period in 2020.

The developer said on Monday that it achieved a significant 83 per cent increase in sales to Dh7.115 billion in the first quarter compared to the Q1 2020 sales of Dh3.887 underscoring investors’ continued confidence in Emaar brand and recovery of Dubai real estate market.

Emaar’s Q1 2021 revenue stood at Dh5.993 billion, an increase of 12 per cent compared to Q1 2020 revenue of Dh5.328 billion.

The developer said with a solid sales backlog of Dh41.805 billion, which will be recognised as future revenue for Emaar Properties, the backlog “reflects the strength of its financial position to preserve high revenue, profitability and shareholders’ return in the foreseeable future.”

Mohamed Alabbar, founder of Emaar Properties, said as one of the most dynamic and growing markets in the world, Dubai’s property market resilience is a testament to its commitment to become one of the world’s best cities.

“We are dedicated to delivering properties in a timely manner and providing unparalleled residential developments that improve the lives of our residents and visitors. Within such a short space of time, Emaar has managed to achieve results that are comparable to 2019, before the pandemic affected businesses globally. Results are not by chance; they are a collective effort,” said Alabbar.

The global property developer, which built Burj Khalifa, a global icon, and The Dubai Mall, the world’s most-visited retail and lifestyle destination, said in its statement that Dubai continues to lead the way as a global hub for trade, financial services, logistics, travel and hospitality, with emerging sectors witnessing growth such as technology, green energy, healthcare and education.

Emaar has handed over more than 74,500 residential units in Dubai and international markets, with more than 25,500 units currently under development in the UAE and 11,500 units in global markets.

Emaar Properties comprises Emaar Development (majority owned), Emaar International, Emaar Malls, and Emaar Hospitality, Leisure & Entertainment.

Emaar’s international operations continued to improve their operational results and recorded property sales of Dh1.211 billion in Q1 2021 compared to Dh1.023 billion in Q1 2020, a growth of 18 per cent compared to 2020. International businesses contributed 13 per cent to Emaar’s total revenue, underpinned by successful operations in Egypt, India and Pakistan.

Emaar Malls, the shopping malls and retail giant, recorded revenue of Dh901 million. Overall net profit for Q1 2021 amounted to Dh318 million which is 169 per cent higher than Q4 2020. Emaar Malls assets maintained strong occupancy levels at 91 per cent.

The hospitality, leisure, entertainment and commercial leasing businesses of Emaar recorded revenue of Dh457 million for Q1 2021, with the hotels under Emaar Hospitality Group, including its managed hotels, boasting average occupancy levels of 62 per cent despite current market challenges and restrictions imposed by authorities. — issacjohn@khaleejtimes.com