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29 March 2024

Emaar Q1 net at Dh863m

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By Staff

Emaar Properties recorded a net profit of Dh863 million ($235 million) during the first quarter (January to March) of 2014. This is 55 per cent higher than the first quarter 2013 net profit of Dh556 million ($151 million) and 14 per cent higher than the fourth quarter (September to December) 2013 net profit of Dh756 million ($206 million).

The revenue for Q1 2014 is Dh2.256 billion ($614 million), seven per cent higher than Q1 2013 revenue of Dh2.110 billion ($574 million).

Emaar’s shopping malls and retail and hospitality and leisure businesses together contributed Dh1.346 billion ($366 million) in recurring revenues during Q1 2014, nearly 60 per cent of the total revenue and 15 per cent higher than Q1 2013 revenues of Dh1.166 billion ($317 million).

Mohamed Alabbar, Chairman of Emaar Properties, said the strong performance of Emaar has been underlined by the robust growth of Dubai’s economy, which is today a global hub for business and leisure, and a safe haven for investments.

“The growth vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has led to tangible results, with all core sectors of the economy including aviation, retail, tourism, trade and hospitality recording outstanding performance. This has further energised Emaar’s growth, highlighted by the increased number of international investors in our projects, especially from new markets,” he said.

Alabbar added: “The increase in tourist arrivals to Dubai and the positive market sentiment have catalysed the growth of our shopping malls and hospitality business too, which contribute significantly to our recurring revenues. This year, led by our strategy to monetise key performing assets, expand to high-growth international markets and develop prime real estate assets in Dubai, we will continue to focus on delivering long-term value for our shareholders and in providing exceptional service standards to our customers.”

Strong recurring revenues

Emaar’s shopping malls and retail business contributed Dh863 million ($235 million), over 38 per cent of Emaar’s total revenue in Q1 2014. This is 15 per cent higher than Q1 2013 revenues of Dh749 million ($204 million). The Dubai Mall, Emaar’s flagship mall asset, welcomed nearly 21 million visitors in the first three months of the year.

Emaar plans to list up to 25 per cent of the Emaar Malls Group equity through a secondary offering of shares. The funds thus raised, estimated to be between Dh8 to 9 billion (over $2.1 to 2.4 billion), will primarily be distributed as dividend to the company’s shareholders.

The hospitality and leisure business of Emaar recorded Q1 2014 revenue of Dh483 million ($132 million), over 21 per cent of the company’s total revenue. This is 16 per cent more than the Q1 2013 revenue of Dh417 million ($114 million).

The Address Hotels + Resorts reported average occupancy of 92 per cent during the first three months of this year. Emaar strengthened its hospitality portfolio with the launch of serviced apartments under The Address Hotels + Resorts and Vida Hotels and Resorts in Dubai.

New launches, robust sales


Q1 2014 was underscored by several new project launches by Emaar in Dubai with strong investor interest from international markets. The value of total sales during the quarter is Dh5.917 billion ($1.611 billion), 94 per cent higher Dh3.043 billion ($828 million) sales during same period in 2013.

In international project sales, Egypt recorded strong increase in value at Dh546 million ($149 million) during the first three months of the year. Significant investor response was also recorded for Emaar’s projects in Pakistan, with the value of sales in Q1 2014 at Dh235 million ($64 million).

As part of its international expansion, Emaar signed a Memorandum of Understanding with Abdul Latif Jameel, Saudi Arabia’s leading business group, to develop integrated property projects in the Kingdom.

A glittering start

Emaar flagged off the year in spectacular style with the New Year’s Eve Gala in Downtown Dubai, which welcomed millions of visitors. Downtown Dubai also hosted the 6th Emirates Classic Car Festival, and the inaugural Dubai Festival of Lights, organised in partnership with the City of Lyon's Festival of Lights (Fête des Lumières de Lyon).

Continuing to win top honours at international awards, Armani Hotel Dubai was crowned as the ‘World’s Leading Landmark Hotel’ at the World Travel Awards, while the 10th Annual Global Traveller’s ‘Reader Survey Awards’ honoured The Address Hotels + Resorts as the ‘Best Hotel Chain in the Middle East’ and The Address Downtown Dubai as ‘Best Hotel in the World.’

16th AGM today

The 16th Annual General Meeting (AGM) of Emaar Properties PJSC will be held today (Wednesday) evening at the Armani Hotel in Burj Khalifa.

The AGM will cover the proposal of the Board of Directors regarding distribution of dividends to the shareholders amounting to 15 per cent of the share capital, Dh0.15 per share as a cash dividend, and 10 per cent bonus shares of the share capital of the company for the year 2013.

The meeting will receive and approve the report of the board of directors on the company’s activities and financial position, and the auditors’ report for the year ending December 31, 2013. The AGM will also appoint the auditors for 2014.

"If the meeting falls short of quorum, the next AGM will be held at 7pm on Wednesday, April 30 at the same venue," the property developer said in a statement.

Emaar had recorded full-year 2013 net profit of Dh2.568 billion ($699 million) and annual revenue of Dh0.328 billion ($2.812 billion). The company’s strong performance was underlined by recurring revenues from the company’s shopping malls and retail, hospitality and leisure business units, which together contributed Dh4.8 billion ($1.307 billion) to FY’13 revenue, or 46 per cent of the total.

With assets of over Dh62.82 billion ($17.1 billion) and an impressive land-bank of more than 226 million sq m in high-growth international markets, Emaar’s growth strategy is to leverage the buoyant growth of Dubai’s real estate sector through iconic projects, build further on its partnerships, develop mall assets in international markets, and explore opportunities for monetising its core assets to provide further growth capital and create long-term value for its stakeholders.