Emaar Properties said revenues from apartment and villa sales rose by more than 40 per cent last year to top Dh4.9 billion, overtaking revenues from the company’s hospitality and leasing operations.
Emaar, the developer of the world's tallest tower, reported that revenue from apartment sales rose 44 per cent to Dh3.6bn. while revenue from villa sales rose 41 per cent to Dh1.3bn.
It made the disclosure in a financial statement published on the Dubai bourse yesterday. Proceeds from sales of plots of land and offices fell 13 per cent over the same period to Dh590 million.
The figures reflect Dubai’s booming house prices which the property agent Jones Lang LaSalle estimates increased 22 per cent last year and could reach 2008 peak levels this year.
At the same time, Emaar said that revenues from its hospitality and leasing operations increased solidly to a total of Dh4.8bn.
Rental income from Emaar’s leased properties and related income increased 20 per cent to Dh3.3bn the company said, while revenues from its hospitality business rose 10 per cent to Dh1.51bn.
The news comes just two days after Emaar revealed plans to sell down up to 25 per cent of its retail and malls division in a secondary offering at a value of up to US$2.45bn, pushing up Emaar’s share price 5.08 per cent on Sunday and by another 1.65 per cent in trading yesterday.
It also came as the company announced the sales launch for its latest housing project, a development of 300 apartments located in two linked 39-storey and 21-storey towers, dubbed BLVD Crescent.
Back in February Emaar posted a 21 per cent increase in 2013 full year profits from to Dh2.5bn.
“Emaar has shown significant growth in the revenues for its villa and condominium sales which are rising at a far faster level than revenues for other parts of the business,” said Vijay Harpalani, an assistant fund manager at Al Mal Capital. “It is possible that they could enjoy the same growth this year, meaning that the real estate side of the business is really driving growth.
“However, there is a lot more risk in this side of the business. This is one of the attractions of the secondary offering that it allows investors to buy into the less risky side of the operation where there is much more visibility on assets.”
lbarnard@thenational.ae
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