Emaar Properties PJSC recorded a net operating profit of Dh2.489 billion ($678 million) during the first nine months of 2014, driven by robust financial fundamentals, surging investor confidence and Dubai’s strong economic growth. This is 37 per cent higher than the net operating profit for the first nine months of 2013 at Dh1.812 billion ($493 million).
Third quarter (July to September) net operating profit reached Dh758 million ($206 million), 30 per cent higher than Dh581 million ($158 million) a year earlier.
Strong value creation
Mohamed Alabbar, Chairman of Emaar Properties, said: “This has been a record nine-month performance for Emaar as we delivered on our promise of strengthening shareholder value. We have set an industry milestone by announcing a total dividend of Dh17.12 billion ($4.66 billion) this year through our strategic growth initiatives including the distributions approved by the shareholders at the beginning of this year and the dividends proposed for distribution before the end of this year. The successful listing of our malls business is testament to our vision to develop stand-alone profit centres of our diverse businesses in Dubai and international markets, creating long-term value for our stakeholders.”
He added: “The prime driver in our growth is the positive performance of the Dubai economy, which continues to inspire international investor confidence. The vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has energised all sectors of the economy and Dubai’s status as a global hub for business, leisure and fashion has contributed to the impressive performance of Emaar’s core businesses this year. Our strategy for the future is to further consolidate Emaar’s position as one of the largest developers of iconic projects and to increase our recurring and international revenues and profits.”
Recurring revenues
Highlighting the successful listing of the company’s shopping malls and retail subsidiary on the Dubai Financial Market through an IPO that recorded total orders of over Dh172 billion ($46.8 billion), Emaar Malls recorded a total revenue of Dh1.898 billion ($517 million) during the first nine months of 2014. At 27 per cent of Emaar’s total revenue, this is 15 per cent higher than the nine-month 2013 shopping malls revenue of Dh1.646 billion ($448 million). The growth in malls business was underlined by its flagship asset, The Dubai Mall, which welcomed over 58 million visitors, 5 per cent higher than the 55 million recorded in the first nine months of 2013.
Emaar’s hospitality and leisure business recorded a nine-month revenue of Dh1.196 billion ($326 million), 17 per cent of total revenue, by drawing on the upbeat performance of Dubai’s tourism sector. This is 13 per cent higher than the nine-month 2013 hospitality & leisure revenue of Dh1.059 billion ($288 million). The Address Hotels + Resorts, Emaar’s flagship hotel brand, recorded an average occupancy of 84 per cent through the same period, an industry-best.
The recurring revenue businesses (Malls, Hospitality and Retail) accounted for Dh3.808 billion ($1.037 billion), which is 54 per cent of Emaar’s total revenue during the first nine months of 2014. The recurring revenue businesses have recorded steady growth in their share of total revenue accounting for 49 per cent in full-year (FY) 2012, 46 per cent in FY2013 and 54 per cent for 9 months of 2014.
Robust property sales in Dubai
Emaar’s core competency of creating premium real estate assets generated significant sales growth in the first nine months of 2014. The total sales value of Emaar’s projects in Dubai was Dh10.5 billion ($2.9 billion), 15 per cent higher than the nine-month 2013 property sales of Dh9.1 billion ($2.5 billion).
In addition to project launches such as BLVD Heights and Opera Grand in Downtown Dubai, Emaar’s flagship mega-development, Emaar is unveiling new joint venture developments including the six million sq metre waterfront project Dubai Creek Harbour at The Lagoons with Dubai Holding in Mohammed bin Rashid City (MBR City), and the 11 million sq metres (2,700 acres), Dubai Hills Estate with Meraas Holding.
International operations
The company’s international operations also reported positive growth through the first nine months of the year contributing a revenue of Dh1.334 billion ($363 million), 73 per cent higher than the nine-month 2013 international revenue of Dh770 million ($210 million).
The company’s international operations now account for 19 per cent of the total revenue.
With over 214 million sq metres of land bank internationally, Emaar’s impressive growth overseas was highlighted by sales of over Dh3.087 billion ($840 million) from Egypt during the first nine months of 2014, an 140 per cent increase over the same period last year. Emaar’s operations in Turkey, Saudi Arabia, Lebanon, Morocco, USA and Pakistan also recorded impressive growth.
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