Dubai: Emaar Properties posts AED4.3bn 9M net profits
Emaar Properties recorded a net profit of AED4.3bn during the first nine months of 2017, an increase of 20% over the net profit of AED3.6bn during the same period in 2016.
Revenue for the first nine months was AED13.4bn, 21% higher than the revenue of AED11.1bn during the same period last year.
Emaar’s build-to-sale real estate businesses in the UAE, Emaar Development, recorded revenues of AED6.5bn, accounting for 48% of the total revenue, and an increase of 27% compared to first nine months of 2016. Emaar Development’ nine months 2017 net profit of AED2.1bn marks an increase of 32% over the same period last year.
Reporting quarter-on-quarter growth, Emaar’s net profit for the third quarter of 2017 was AED1.5bn, a growth of 32% over the net profit of AED1.1bn during Q3 2016. Revenue for Q3 2017 was AED5.5bn, 45% higher than the Q3 2016 revenue of AED3.8bn.
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.
“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 HH 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.”
This year, Emaar recorded sustained growth in demand for its residential sales in Dubai Creek Harbour, Dubai Hills Estate, Emaar South, Downtown Dubai, and Arabian Ranches ll. The company has also purchased a prime waterfront land in Dubai Harbour, the master-planned development recently announced by HH Sheikh Mohammed. The land is well-positioned between Jumeirah Beach Residences and The Palm Jumeirah measuring about 950,000 sq ft with about 10 million sq ft GFA. Emaar will build a series of elegantly designed high-rise residential apartments overlooking the Arabian Gulf in addition to a hospitality project to be operated by its Address Hotels + Resorts, which will also have branded residences.
Emaar’s total property sales including international operations in the first nine months of 2017 was AED17.6bn with an expanding total backlog of AED50.5bn. To date, Emaar has handed over 44,200 residential units in Dubai and international markets.