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Emaar records 28% increase in net profit in the first nine months of 2018


Emaar Properties, developer of the world’s tallest tower Burj Khalifa, recorded a 28 per cent growth in net profits to Dh5.26 billion (US$1.43 billion) during the first nine months of 2018, compared to the net profit of Dh4.10 billion (US$1.12 billion) during the same period last year, a company statement said.

 

The developer recorded a 30 percent jump in revenue to Dh17.39 billion (US$4.73 billion) in the first nine months of 2018, compared to Dh13.35 billion (US$3.63 billion) during the same period in 2017, led by the robust growth achieved by Emaar Development, the UAE build-to-sale property development business majority owned by Emaar, as well as the impressive performance by Emaar Malls.

 

Emaar’s build-to-sale real estate businesses in UAE, Emaar Development, recorded revenues of Dh10.03 billion (US$2.73 billion), accounting for 58 per cent of the total revenue. This is an increase of 54 per cent compared to first nine months of 2017. Emaar Development’s net profit increased by 19 per cent to Dh2.49 billion (US$680 million) over same period last year.

 

Emaar’s shopping malls, hospitality and leisure businesses recorded revenues of Dh5.18 billion (US$1.41 billion) during the nine months of the year, 17 per cent higher than revenue of Dh4.44 billion (US$1.21 billion) during the same period last year, which represents 30 per cent of the total revenue. Emaar’s international property development operation contributed Dh2.18 billion (US$595 million) to the total revenue during nine-month period of the year, which represents 13 per cent of the total revenue.

 

Mohamed Alabbar, Chairman of Emaar Properties, said: “Our commitment to our customers and stakeholders is to create continued value, which reflects in the strong performance of our core businesses. We focus on continuously evolving our businesses to meet the aspirations of today’s customers. By investing in digital technology and by innovating new lifestyle environments, we are creating assets that shape the future.”

 

Backed by strong investor interest in Emaar’s premium property development in the UAE, Emaar Development recorded total sales of Dh10.03 billion (US$2.73 billion) during the first nine months of 2018. Emaar Development now has a total sales backlog of Dh38.52 billion (US$10.49 billion), which will be recognised as revenue in the next three to four years. Emaar Development also announced to distribute a special (interim) cash dividend of Dh1.04 billion (US$283 million) to its shareholders, equivalent to 26 per cent of its share capital.

 

During nine months of the year, Emaar Development launched several exceptional residential projects such as Beach Vista, Sunrise Bay and Marina Vista in Emaar Beachfront, Grande in Downtown Dubai, The Grand in Dubai Creek Harbour and Socio, Collective and Golf Place in Dubai Hills Estate. With these launches, Emaar currently has over 26,500 units under development in UAE. To date, Emaar has delivered more than 35,100 residences in Dubai and over 49,500 residences including the hand-overs in other international markets.

 

Emaar Malls recorded revenues of Dh3.23 billion (US$880 million), during the first nine months of 2018, 29 per cent higher than the revenue for the same period last year at Dh2.5 billion (US$681 million). One of the largest mall operators in the world with a total gross leasable area of 6.7 million square foot, Emaar Malls assets have occupancy levels of 93 per cent and welcomed 99 million visitors during the first nine months of 2018.

 

Revenue from Emaar’s hospitality, commercial leasing and entertainment businesses was Dh1.95 billion (US$532 million) during the first nine months of 2018, similar to the revenue of Dh1.94 billion (US$529 million) during the same period in 2017.

 

Emaar is today ranked as the world’s largest property company outside China, with a brand value of over US$2.7 billion, making it the first choice for international investors seeking high-value returns. Emaar is also among the top 10 brands in the Middle East led by its strategic new developments, with its brand value increasing by 39 per cent in the past year.