Retail and hospitality now make up 54% of Emaar revenues

Mall subsidiary records Dh1.89b in revenues for first three quarters

29/10/2014 18:51 AST

Newly-listed Emaar Malls generated revenues of Dh1.89 billion for the first three quarters, 15 per cent higher than for the comparable period last year (Dh1.64 billion. The Dubai Mall continued to be the biggest contributor to Emaar’s retail-side operations, drawing in 58 million visits in the first nine months and against 55 million last year. (The IPO had generated total orders of Dh172 billion plus.) Post the IPO, the company had announced a special dividend of Dh5.3 billion, and which followed one — totalling Dh3.7 billion — just before the release as well. In April, the company paid dividends of Dh8 billion through a mix of cash and bonus shares. This year’s dividend outgo will total Dh17.12 billion, or 250 per cent of the par value of the scrip. The share price remained unchanged at Dh10.35. The 52-week high is Dh12.

At the parent company level, Emaar Properties had revenues of Dh7.03 billion in the year to September, and derived a Dh2.48 billion net profit in doing so. For the third quarter specifically, Emaar Properties had a net operating profit of Dh758 million on revenues of Dh1.97 billion.

Apart from its malls and retail interests, Emaar’s other recurring revenues, from hospitality, fetched nine-month revenues of Dh1.19 billion, which works out to 17 per cent of total revenues. This is also 13 per cent higher from the corresponding year figures of Dh1.05 billion.

The three recurring business lines made up 54 per cent of the parent’s revenues. In fact, this is the highest attained by them, given that in the full-year 2012 they made up 49 per cent and 46 per cent in 2013.

The core operations of real estate development, sales and leasing recorded revenues of Dh10.5 billion, up from last year’s Dh9.1 billion. It continues to put out new sales launches, the latest being apartment units at Dubai Creek Harbour. The company’s international operations now account for 19 per cent of the total revenue, by totalling Dh1.33 billion.

Gulf News