Emaar’s Q1 profit swells 17%

The Tower at Dubai Creek Harbour
The Tower at Dubai Creek Harbour

Dubai - Developer posts net profit of Dh1.2 billion; revenues soars to Dh3.529 billion

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By Abdul Basit

Published: Mon 2 May 2016, 4:02 PM

Last updated: Wed 4 May 2016, 10:27 PM

Global developer Emaar Properties has recorded a Q1, 2016 net profit of Dh1.205 billion, an increase of 17 per cent compared to the net profit of Dh1.026 billion during the same period last year.
Led by significant progress in construction of its projects, Emaar's Q1, 2016 revenue was Dh3.529 billion, 17 per cent higher than the Q1, 2015 revenue of Dh3.024 billion. Recurring revenues from the shopping malls and hospitality businesses during Q1, 2016 were Dh1.555 billion, 44 per cent of the total revenue. International operations, led by the strong results primarily in Egypt among other markets, contributed Dh499 million to revenue, a growth of 44 per cent over Q1, 2015 revenue and accounting for 14 per cent of Emaar's Q1, 2016 revenue.
Mohamed Alabbar, chairman of Emaar Properties, said: "The first-quarter results are a clear indicator of the growth we have achieved across all our three core businesses this year. Property sales in Dubai and other key international markets have gained momentum, a testament to our differentiating strength in offering the right property of choice for investors in premium locations."
"We are building on this positive trend by developing premium projects in exceptional locations, especially in Dubai, to support the vision of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to establishing the city as a global leader in all sectors, and to complement the preparations for the Expo 2020 Dubai. This is highlighted by the launch of the iconic new tower in Dubai Creek Harbour and the planned opening of Dubai Opera in Downtown Dubai this year. Both will serve as magnets for investors and visitors," he said.
Alabbar also added: "We are also launching a new Retail District in Dubai Creek Harbour and expanding The Dubai Mall, in addition to rolling out 35 new hotels and serviced residences in Dubai and other international markets. The sustained recurring revenue from these assets will help create long-term value for our stakeholders."
Highlighting its commitment to shareholders, Emaar has distributed a cash dividend of 15 per cent of the share capital, equivalent to Dh1.074 billion for the year 2015. Emaar also recorded Q1, 2016 revenue of Dh1.974 billion from its property business, 32 per cent higher than the same period in 2015. In Q1, 2016, Emaar has recorded strong sales of Dh5.151 billion, a growth of 41 per cent over Q1 2015, led by robust sales in Dubai. The value of sales in Dubai during this quarter reached Dh4.194 billion, 70 per cent higher than the first quarter of 2015.
Property sales in Dubai were led by strong investor interest in Harbour Views at Dubai Creek Harbour, The Address Residences Dubai Opera and premium Sidra villas in Dubai Hills Estate. Emaar has awarded construction contract for Dubai Creek Residences in Dubai Creek Harbour and construction is progressing as per schedule. During Q1, 2016, Emaar Malls recorded revenues of Dh833 million and net profit of Dh529 million, recording a growth of 22 per cent.
Emaar Malls also distributed 10 per cent of the share capital, equivalent to Dh1.301 billion, as cash dividend to the shareholders. Emaar's hospitality, commercial leasing and entertainment businesses reported revenues of Dh722 million during the first quarter of 2016.
- business@khaleejtimes.com

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