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Emaar 2013 profits jump 21% to Dh2.57bn

By Staff

Emaar Properties recorded net profit of Dh2.568 billion for 2013 as compared to Dh2.119 billion in the previous year, registering an increase of 21 per cent.

Annual revenue for 2013 reached Dh10.328 billion, 25 per cent increase on 2012 revenues of Dh8.240 billion.

This strong performance was underlined by recurring revenues from the company’s shopping malls & retail and hospitality & leisure business units, which together contributed Dh4.8 billion to 2013 revenue, or 46 per cent of the total. This is an increase of 17 per cent in from the revenues from the two businesses during 2012, which accounted for Dh4.096 billion.

Emaar’s property business generated total revenue at Dh5.528 billion. Revenues from the company’s global operations in 2013 were Dh1.167 billion, representing 11 per cent of the total revenue.

Fourth quarter revenues reached Dh2.762 billion, an 18 per cent increase compared to the previous quarter of Dh2.347 billion.

Net profit for the fourth quarter totalled Dh756 million, 48 per cent higher than the fourth quarter 2012 net profit of Dh512 million.

Mohamed Alabbar, Chairman of Emaar Properties, said: “One of the defining aspects of Emaar’s strong financial performance in 2013 is the positive contribution of our developments to the local economy. Downtown Dubai, our flagship mega-development, has energised the property, retail, tourism and hospitality sectors, in addition to creating over 50,000 jobs since its launch. Emaar’s fundamental financial strength is underscored by our diversified growth model, with the shopping malls and hospitality business contributing significantly to the total revenue.

“With the economy gaining further traction following the successful bid by the UAE to host the World Expo 2020 in Dubai, the city is entering a new phase of dynamic growth. His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, has outlined a clear development strategy for the city. Emaar will complement this through our focus on developing integrated neighbourhoods that meet Dubai’s future needs including the world-class infrastructure for hosting World Expo 2020. Our strong pipeline of projects, which reflect our commitment to creating long-term value for our stakeholders, will serve as a key growth driver for the company and for Dubai.”

Leasing & retail business

Emaar’s leasing & retail business recorded a total revenue of Dh3.285 billion in 2013. This is 21 per cent higher than the 2012 shopping malls & retail revenue of Dh2.719 billion.

Driving this growth, The Dubai Mall, Emaar’s flagship mall, welcomed over 75 million visitors, a growth of 15 per cent over 2012. The mall’s 1,200 plus retail outlets recorded a 26 per cent rise in sales during 2013 compared to the previous year. According to market estimates, more than 50 per cent of all luxury goods sold in Dubai are purchased at the mall.

With a portfolio of 12 hotels and resorts consisting of over 1,900 rooms, Emaar’s hospitality & leisure business recorded revenues of Dh1.515 billion in 2013. This is 10 per cent higher than the 2012 revenue of Dh1.377 billion. The Address Hotels + Resorts maintained an average occupancy of 84 per cent during 2013, similar to that in 2012.

In 2013, Emaar announced the launch of a diverse portfolio of serviced residences to be managed by its flagship hotel brand, The Address Hotels + Resorts. Emaar also launched the Vida Hotels and Resorts, its new hospitality concept targeting a new generation of business executives, entrepreneurs and leisure travellers.

To support Dubai’s Tourism Vision 2020 strategy to welcome over 20 million annual visitors by the turn of the decade, Emaar has also joined hands with Meraas Holding, a leading Dubai-based development company, to launch a new hotel brand, ‘Dubai Inn’ focused on the affordable segment.

New projects

Emaar marked the launch of several new major projects in Dubai during 2013 including The Address Residence Fountain Views I, II and III; The Address Residence Sky View and Burj Vista in Downtown Dubai; The Hills and Vida Residence in Emirates Living; and Palma and Rosa villas in Arabian Ranches. Emaar also unveiled The Opera District, featuring the iconic Dubai Opera, a 2,000-seat multi-venue performing arts centre, in Downtown Dubai.

The launches gained solid response from customers in Dubai and other international markets. The total value of sales in Dubai for the full year 2013 is Dh12 billion (US$ 3.3 billion), which is nearly 3 times compared to the sales in 2012.

Emaar also unveiled Dubai Hills Estate, the first phase of Mohammed Bin Rashid City (MBR City) a joint venture with Meraas Holding; and a waterfront city inspired and built on the banks of the Dubai Creek, also part of MBR City, as a joint venture with Dubai Holding. Supporting Dubai’s bid to host the best expo ever, Emaar has signed a MoU to develop an integrated urban centre and golf destination in a prime location at Dubai World Central, the home to Expo 2020 and the Al Maktoum International Airport.

Among key international project launches, Emaar Erbil launched Downtown Erbil, the first-of-its-kind integrated lifestyle development in the fast-growing city of Erbil in Kurdistan of Iraq; Emaar Middle East launched a second residential tower, Abraj Al Hilal 2 in Jeddah Gate, its flagship masterplanned community in Saudi Arabia; Emaar Misr launched several new projects within Mivida and Uptown Cairo, its masterplanned communities in the city; and Emaar Turkey unveiled fully-furnished serviced homes, The Address Residences Emaar Square, Istanbul.