Emaar Properties' full-year profit up
But fourth-quarter net profit for the Dubai-listed real estate company fell from the same period the previous year
Dubai-based listed real estate company Emaar Properties reported a 9 per cent hike in net profit to Dh5.7 billion in 2017, but a 16 per cent drop in fourth-quarter net profit from the same period the previous year, it said in a filing on Wednesday to the Dubai Financial Market, where its shares are traded.
Emaar Properties said net profit for the fourth quarter of 2017 dropped to Dh1.35bn compared to Dh1.61bn in the same period of 2016. It did not supply a reason for the drop.
“The growth of our businesses in 2017, across all markets, reflects the success of our focus on delivering high quality lifestyle choices,” said Emaar founder and chairman, Mohamed Alabbar.
“Emaar’s hospitality and leisure operations have also gained further traction through geographic expansion and the creation of innovative experiences.”
Year-on-year net profit rose to Dh5.7bn from Dh5.23bn, the company said. Full-year 2017 revenues increased by 21 per cent to Dh18.8bn from Dh15.5bn in 2016, attributed to strong performance from shopping malls, hospitality, and leisure and entertainment businesses, which accounted for 34 per cent, or Dh6.3bn, of total revenues for the year, 6 per cent higher than in 2016.
Emaar Properties’ fourth-quarter revenues stood at Dh5.36bn, 21 per cent higher than the Dh4.43bn recorded in the same period of 2016.
Several residential developments in Dubai were launched for sale in 2017, including in Dubai Creek Harbour, Dubai Hills Estate, Emaar South, Arabian Ranches II and Downtown Dubai.
In 2017, Emaar Properties listed its property development arm, Emaar Development, on the DFM, selling a 20 per cent stake and raising Dh4.824bn.
It announced last month it would distribute Dh4bn in dividends to shareholders from the proceeds of the initial public offering.
Earlier on Wednesday, Emaar Development reported a 30 per cent jump in 2017 full-year net income as it continues to launch and deliver projects.
The company reported net profit of Dh2.74bn for the 12-month period to the end of December, up from Dh2.11bn a year earlier, it said in a separate filing to the DFM.
Emaar Development achieved record sales of Dh18.03bn in 2017, a 25 per cent increase over Dh14.4bn of sales in 2016. It now has a sales backlog of Dh41bn as of 31 December 2017, with more than 24,000 residential units to be delivered over the coming years, its parent company said.
Revenue from Emaar Properties’ international development operations stood at Dh3.60bn for 2017, up 35 per cent year-on-year from 2016. Global operations now account for 19 per cent of Emaar’s total revenue, it said.
“With our significant sales backlog and a robust development pipeline in the UAE and in high-growth international markets, we will continue to deliver on our founding objective of ‘shaping the future,” Mr Alabbar said.
Updated: February 14, 2018 06:31 PM