Dubai's Emaar Properties reports 8% rise in Q2 profit, now in 'exciting phase of growth'

Emaar Properties has increased its second-quarter net profit by 8 per cent year-on-year to Dh1.27 billion as revenue climbed by 7 per cent to Dh3.5bn.

In the six-month period, net profit was up 12 per cent to Dh2.48bn (H1 2015: Dh2.2bn) as revenue climbed by 11 per cent to Dh7.26bn (Dh6.52bn).

The company said that over the six-month period, recurring revenue from its retail, hospitality and leisure arm comprised 40 per cent of its total at Dh2.92bn. This is slightly ahead of the Dh2.9bn generated last year, although its share of last year’s revenue was 45 per cent.

Revenue from its international operations was Dh1.03bn – 14 per cent of the total, but a 12 per cent decline on the Dh1.17bn generated in the same period a year earlier.

The property development arm witnessed a 20 per cent increase in revenue to Dh3.62bn, while the total amount of properties sold during the period equated to Dh10.44bn — 23 per cent higher than last year. Emaar now has a backlog of projects to be delivered over the next three to four years with a value of Dh45bn.

Mohamed Alabbar, the chairman of Emaar Properties, said that the results highlighted the success of its strategy to consolidate its position as the biggest developer in Dubai, and to build its recurring revenue base.

“We are in one of the most exciting phases of our growth strategy having launched a brand new icon for the city – The Tower at Dubai Creek Harbour – and the imminent roll-out of Dubai Opera in Downtown Dubai.

“We are scaling up our malls business with the launch of a retail district in Dubai Creek Harbour and the expansion of Dubai Mall. We are also strengthening our hospitality portfolio with 35 new hotels and serviced residences in the UAE and international markets.”

This beat an estimate from analyst SICO Bahrain, which had predicted a profit of Dh1.06bn.

The company’s shares closed almost 1 per cent lower at Dh6.82 per share, but in the year to date have climbed by almost 20 per cent, giving it a market cap of just below Dh49.2bn.

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Michael Fahy

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