Emaar Properties said on Tuesday its’ third quarter profit fell five per cent to Dh386 million as compared to Dh406 million for the same period last year due to drop in revenues.
The property developer’s third quarter revenues fell 12 per cent to Dh1.639 billion from Dh1.86 million for the same period last year.
The Dubai-based developer said its 9-month profit jumped 49 per cent to Dh1.6 billion as against Dh1.07 billion for the same period last year.
Its net operating profit was Dh1.607 billion for the first nine months of 2012, 29 per cent higher than the net operating profit of Dh1.249 billion during the same period in 2011.
The revenue for the first nine months of 2012 reached Dh5.560 billion, similar to the revenue of Dh5.873 billion during the same period last year.
Mohamed Alabbar, Chairman, Emaar Properties, said: “The strong performance of Emaar in the first nine months of 2012 is a clear demonstration of our ability to provide long-term value to our stakeholders through strategic investments in new projects and by strengthening our presence in high-growth emerging markets.
“Under the leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the city is on a very positive growth track, underlining its enduring appeal as a global hub for business, trade, travel, hospitality and retail. That positive macroeconomic outlook is reflected in the strength of Dubai’s real estate sector, which is witnessing an ongoing upward price revision as well as a high level of demand for new projects in strategic locations, such as Emaar’s The Address The BVLD, launched to tremendous response in the third quarter of this year.”
Shopping mall and hospitality subsidiaries
Highlighting Emaar’s focus on strengthening its recurring revenue streams, the company’s hospitality & leisure and shopping malls & retail businesses recorded a total revenue of Dh2.855 billion in the first three quarters of this year, representing 51 per cent of Emaar’s total revenue for the period. This is 17 per cent higher than the total shopping malls & hospitality revenue of Dh2.444 billion reported during the first nine months of 2011.
Revenues from the shopping mall & retail business for the first nine months of 2012 reached Dh1.882 billion, approximately 18 per cent higher than the revenue of Dh1.6 billion during the same period last year. The Dubai Mall welcomed more than 44.5 million visitors from January to September 2012, an increase of approximately 15 per cent compared to the same period last year.
Emaar’s hospitality & leisure business recorded revenues of Dh973 million in the first nine months of 2012, 15 per cent higher than the revenues of Dh844 million during the same period last year. Having consolidated its hospitality business by assuming the management of Al Manzil and Qamardeen hotels, launching new projects and signing management agreements in Egypt and Kenya, The Address Hotels + Resorts, the flagship hotel brand of Emaar, recorded an average occupancy rate of 83 per cent during the first nine months of 2012.
New projects and issuance of Sukuk
In the first nine months of this year, Emaar launched new projects in Dubai and international markets. In Dubai, Emaar launched Panorama at The Views, high-end apartments that are part of an established neighbourhood; several luxury villas and townhouses in Arabian Ranches; and The Address The BLVD, a hotel and serviced residences located in Downtown Dubai.
All three projects sold out in record time, contributing to Emaar’s total sales in Dubai at Dh3.08 billion in the first nine months of the year, significantly higher as compared to the same period in 2011.
Emaar also finalised a land transaction with Dubai Properties Group in the Dubailand district. That plot is located on Al Qudra Road adjoining the Arabian Ranches development, Emaar’s fully established master-planned community.
In the third quarter of 2012, Emaar successfully priced its second international fixed-income sukuk offering, raising $500 million via the issuance of trust, which was listed on Nasdaq Dubai. The sukuk’s success underlines Emaar's strong value proposition and the positive credit standing of the company in international financial markets.