30/10/2014 05:41 AST
Emaar Properties recorded a net operating profit of Dhs2.48 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 Dhs1.812 billion ($493 million).
Third quarter (July to September) net operating profit reached Dhs758 million ($206 million), 30 per cent higher than Dhs581 million ($158 million) a year earlier.
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 Dhs17.12 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 Dhs172 billion ($46.8 billion), Emaar Malls recorded a total revenue of Dhs1.898 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 Dhs1.646 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 Dhs1.196 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 Dhs1.059 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 Dhs3.808 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.
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