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Emaar Properties records 20% increase in Q3 net profit
Emaar Properties PJSC, recorded a 20 percent increase in net profit to Dh1.33 billion(US$362 million) in third quarter (July to September) of 2019, compared to the net profit of Dh1.11 billion (US$302 million) recorded during the same period in 2018. Revenue of Emaar also grew 14 per cent to Dh6.07 billion (US$1.65 billion) during third quarter of 2019, compared to revenue of Dh5.34 billion (US$1.45 billion) during the same period last year.
The developer recorded property sales of Dh12.62 billion (US$3.43 billion) in Dubai during the first nine months (January to September) of 2019, a growth of 25 per cent compared to same period in 2018.
The growth is attributed to the continuous interest from foreign investors in both residential and commercial developments as well as new, first-time home buyers entering the UAE property market.
Emaar recorded a revenue of Dh17.64 billion (US$4.80 billion) and net profit of Dh4.44 billion (US$1.20 billion) in the first nine months of 2019, led by resilient performance of the property, malls and hospitality business.
Mohamed Alabbar, Chairman of Emaar Properties and Emaar Development, said: “Emaar’s results are driven by its key principles of having the best people working day and night to achieve utmost customer happiness through providing them superior product and services. Also, in these dynamic markets, maintaining superior performance is a key testimony of an excellent team and their continuous efforts to achieve efficiencies, superior product and financial results.”
Emaar Development PJSC, the UAE development arm of Emaar Properties, recorded a net profit of Dh2.07 billion (US$564 million) and revenue of Dh9.62 billion (US$2.62 billion) for the first nine months of the year.
During the first nine months of 2019, Emaar Development launched 19 new projects across its mega developments in Dubai with a total project value of Dh10.12 billion (US$2.75 billion). Highlighting Emaar’s strong brand value, the company has sold over 70 per cent of its units launched in first nine month of 2019.
During 2019, Emaar launched properties in the newly launched master-planned community of Arabian Ranches III, Emaar Beachfront and Dubai Hills Estate, recording a sell-out response and also launched Ease by Emaar, a property management services, helping investors of South Beach at Emaar Beachfront capitalise on an emerging business model of short-term rentals and earn substantial returns.
Emaar Development has also entered into a new joint venture for master-planned development ‘The Valley’, an Dh25 billion (US$7 billion) project located on Dubai – Al Ain Road.
Emaar Malls, the shopping malls and retail arm of Emaar Properties, recorded 6 per cent increase in revenue to Dh3.41 billion (US$929 million) during the first nine months (January to September) of 2019, compared to same period in 2018. Net profit has also increased by 6 per cent to Dh1.73 billion (US$472 million) compared to same period last year.
Emaar Malls assets – The Dubai Mall, Dubai Marina Mall, Gold & Diamond Park, Souq Al Bahar and the Community Retail Centres – maintained strong occupancy level at 92 per cent, and robust visitors arrival at 99 million during the first nine months of this year.
Emaar’s hospitality & leisure, entertainment and commercial leasing business along with Emaar Malls, posted a revenue of Dh5.25 billion (US$1.43 billion), representing 30 per cent of the total Group revenue. The hotels under Emaar Hospitality Group (including managed hotels) in Dubai reported an average occupancy of 78 per cent, higher than the industry average.
Emaar’s international property development operations recorded 22 percent increase in revenue to Dh2.67 billion (US$728 million) during first nine months of 2019, compared to revenue of Dh2.18 billion (US$595 million) during same period in 2018. This now represents 15 per cent to the total Group revenue.
Emaar has a landbank of over 1.7 billion square feet in key markets and is ranked 14th among the world’s strongest real estate companies in 2019, with an estimated brand value of US$2.7 billion.