Emaar Properties PJSC, the global property developer of iconic projects, reported today a net operating profit of AED 1.249 billion (US$ 340 million) in the first nine months (January to September) of 2011.
Revenue for the first nine months this year reached AED 5.873 billion (US$ 1.599 billion).
Third quarter (July to September) 2011 revenue stood at AED 1.859 billion (US$ 506 million), compared with the second quarter 2011 revenue of AED 2.032 billion (US$ 553 million).
Net operating profit for the third quarter of this year reached AED 406 million (US$ 111 million), similar to the second quarter 2011 net operating profit of AED 422 million (US$ 115 million).
The nine-month performance of Emaar was underlined by the sustained growth of its hospitality & leisure and shopping malls & retail subsidiaries, the continued demand for homes and commercial space within its established communities such as Downtown Dubai, and the hand-over of prime real estate assets in international markets, including Turkey, Jordan and Syria.
Residences in several master-planned developments of Emaar in other global markets including Saudi Arabia and Egypt – two of the biggest markets in terms of demand for ‘affordable luxury’ homes – will be handed over shortly, adding to the company’s revenue stream in the coming months.
Strong recurring revenue streams
The shopping malls business of Emaar recorded robust growth in revenue during the first nine months of 2011 with the total rental and related revenue for the period being approximately AED 1.6 billion (US$ 436 million). The Dubai Mall, its flagship mall development, welcomed 39 million visitors during the period - 13% higher than visitors in 2010 for the period. The mall is on course to crossing the 50 million visitor mark this year.
Emaar’s hospitality business also contributed significantly to Group revenues with The Address Hotels + Resorts, its flagship hotel brand. In spite of the third quarter being a seasonally lower period for hospitality business, The Address Hotels + Resorts recorded an average occupancy rate of 80% during the first nine months of the year. Revenue from the hospitality & leisure business during the first nine months was AED 844 million (US$ 230 million).
Recurring revenues from the hospitality and shopping malls businesses of Emaar accounted for nearly 41% of total revenue in the first nine months of the year.
Delivering Dubai’s vision
Mr Mohamed Alabbar, Chairman of Emaar Properties, said the continued increase in revenues from Emaar’s malls and hospitality business mirrored the growth achieved by Dubai in its core business sectors, highlighting the company’s contribution to the emirate’s economy.
“Dubai’s growth vision, as outlined by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai, focuses on promoting its retail, tourism and hospitality sectors. By creating global icons and prime real estate assets, Emaar has consistently focused on delivering Dubai’s vision, creating new jobs and powering the growth of ancillary industries,” he explained.
Mr Alabbar added: “Emaar’s focus on emerging markets and further driving its profitable subsidiaries is strategic, and in line with our commitment to offer long-term value for our stakeholders.”
Committed to delivery
In the first nine months of the year, Emaar further expanded its Dubai property portfolio with the delivery of residential units and commercial offices in Burj Khalifa, its dedicated office development in Downtown Dubai – the Boulevard Plaza and its first office development in Dubai Marina – Marina Plaza. In all, Emaar handed over 712 units in the first nine months of the year of which 201 units were handed over in the third quarter.
Internationally, Emaar handed over homes in Samarah Dead Sea Resort, owned by an Emaar’s associated company in Jordan, marking the evolution of a brand-new lifestyle community by the Dead Sea. The company’s Syrian subsidiary handed over commercial offices in The Eighth Gate.
In the coming months, Emaar Middle East, a subsidiary focused on development projects in the Saudi Arabia, will hand over the first homes in the Kingdom at its Al Khobar Lakes development in the Eastern Province. Homes in Jeddah Gate will also be handed over shortly, underscoring Emaar’s commitment to meet the growing demand for ‘affordable luxury’ in the Kingdom.
Emaar is also progressing with the handover of homes in Egypt, where the first phase of its flagship projects, Uptown Cairo and Marassi, are in the final stages of completion.
Emaar demonstrated its industry leadership status most recently with four Guinness World Records for its iconic developments including, ‘Tallest Building’ and ‘Tallest Man-made Structure Ever’ for Burj Khalifa; ‘Largest Shopping Centre’ for The Dubai Mall; and the ‘Highest Restaurant from Ground Level’ for At.mosphere.