Emaar Development delivers property sales of Dh4.3b
Leading UAE property developer Emaar Properties reported on Wednesday a net profit fall of 45 per cent in the January-September period to Dh2.44 billion.
The master developer’s nine-month revenue fell 24 per cent to Dh13.4 billion as property sales reached Dh7.786 billion.
For the nine-month period of 2019, Emaar recorded a revenue of Dh17.64 billion and net profit of Dh4.442 billion, led by resilient performance of the property, malls and hospitality business.
In a statement, Emaar said the group now has a total sales backlog of Dh40.758 billion to be recognised as revenue in the coming years.
Mohamed Alabbar, the founder of Emaar, stressing Emaar’s resilience amid uncertain times, said the group’s performance in the third quarter demonstrated its continued resilience during these challenging conditions. “Covid-19 has hugely impacted businesses all over the world, but the plans and strategies that we adopted during the early stages of the pandemic, which included a restructuring of our businesses into leaner operations, showed our great agility in dealing with the crisis.”
He said he was cautiously optimistic about the remainder of the year, and “I am confident that things will be in better shape across most sectors by summer 2021.”
“Meanwhile, we continue to maintain our focus on meeting and exceeding our customer expectations, delivering long-term, sustainable results across our business units, and strengthening our organisation and services for the future ahead,” said Alabbar.
Emaar’s international operation delivered property sales of Dh3.435 billion in the first nine months of 2020, a growth of nine per cent compared to the same period in 2019. Property sales in the UAE, amounting to Dh4.351 billion, also recorded a month-on-month increase
Emaar Development, Emaar’s build-to-sale real estate business in UAE, reported revenue of Dh7.133 billion with a net profit of Dh1.359 billion in the nine-month period, demonstrating its strong financial fundamentals, said the statement.
“Emaar Development remains committed to its projects’ delivery timeframes. As of September 2020, Emaar’s delivery track record includes more than 45,000 residential units in Dubai and, including other international markets, Emaar has delivered over 68,500 residential units. Over 28,000 residences are currently being developed in the UAE, alongside 13,000 units across international markets,” it said.
Emaar now has a total sales backlog of Dh40.758 billion of which Dh27.286 billion is in the UAE, to be recognised as revenue in the coming years.
Emaar Malls, majority-owned by Emaar Properties reported revenue of Dh2.493 billion in the first nine months of 2020, with a net profit of Dh586 million, despite challenging market conditions.
“As part of its continued and unwavering support for its tenants, Emaar Malls also extended its flexible rent Relief Policy for the period from 1 September to 31 December 2020, including a tiered base rent waiver for its tenants,” Emaar said.
The leading online fashion and beauty destination platform Namshi, which was fully acquired by Emaar in 2019, recorded overall revenue of Dh933 million in the first nine months of 2020. With a 35 per cent increase in revenue compared to the same period last year, Namshi’s customer base continued to rise across the Mena region.
Emaar’s hospitality & leisure, entertainment and commercial leasing business contributed Dh1.114 billion to the Group’s total revenue. Along with Emaar Malls, these businesses recorded revenue of Dh3.607 billion, representing 27 per cent of Emaar’s overall revenue.
Emaar’s international property development recorded revenue of Dh2.634 billion for the first nine months of the year, similar to the revenues recorded during the same period last year. International development business contributes 20 per cent to Emaar’s total revenue. The results were underpinned by continued successful operations in Egypt and Pakistan, including the launches of Cairo Gate and Mivida mixed-use development and Panorama tower in Karachi.
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