Retail, hospitality boost Emaar Q3 profit by 31% to Dh843m

Property developer Emaar Properties recorded net profit growth of 16 per cent for the first nine months of 2015 to Dh3.048 billion compared to Dh2.622 billion during the same period in 2014.

Revenues for the first nine months of 2015 were Dh9.849 billion, a growth of 25 per cent over the same period last year at Dh7.888 billion.

During the third quarter of 2015, Emaar recorded a net profit of Dh843 million, 31 per cent higher than Q3 2014 net profit of Dh645 million.

Q3 2015 revenues were Dh3.329 billion, growing by 56 per cent compared to Q3 2014 revenues of Dh2.136 billion.

Underlining the strong growth of its shopping malls, retail and hospitality business, recurring revenues for the first nine months of 2015 grew to Dh4.194 billion, 10 per cent higher than Dh3.808 billion during same period last year. This represents 43 per cent of the total revenues during the first nine months of 2015.

Emaar’s international operations recorded robust growth with revenues from global operations during the first nine months of 2015 at Dh1.734 billion, which is 18 per cent of the total revenue. This is 21 per cent more than the revenues from international operations during the same period last year.

Mohamed Alabbar, Chairman of Emaar Properties, said: “The robust performance of Emaar highlights the success of our strategy to develop exceptional real estate assets in our home market of Dubai and other key international markets with a focus on ensuring the highest standards of build quality and service excellence… Our projects, including joint venture initiatives, create smart cities of the future that also support the ongoing preparations to host Expo 2020 Dubai, which serves as a growth catalyst for the economy.”

Emaar said demand for the launches in Dubai, especially from end-use investors, has been strong with total sales during the first nine months of year at Dh7.513 billion. Sales in international markets during the same period were valued at Dh3.929 billion.

The hospitality and leisure business of Emaar recorded revenues of Dh1.199 billion during the first nine months of the year, similar to revenues during the same period last year at Dh1.196 billion. Hospitality revenues now account for 12 per cent of the total revenue.

With two hotel brands – The Address Hotels + Resorts and Vida Hotels and Resorts – currently under the hospitality business, Emaar is now all set to roll out the first property under its third brand, Rove Hotels (a joint venture with Meraas Holding), targeting the mid-market segment. The average occupancy in the flagship Address + Resorts in Dubai during the first nine months of 2015 was 84 per cent.

The Address Hotels + Resorts and Vida Hotels and Resorts are now expanding its footprint to Turkey, Egypt, Nigeria and Bahrain to operate hotels and serviced residences.

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