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REAL ESTATE ASSETS GROWTH

Emaar Properties posts 30pc jump in 2018 net profit

DUBAI, February 14, 2019

Leading UAE developer Emaar Properties has reported a net profit of Dh7.216 billion ($1.965 billion) in 2018, up 30 per cent over Dh5.561 billion ($1.514 billion) the previous year, prior to considering the effect of the IPO of Emaar Development and forex movement.

Announcing the results for 2018, Emaar said its revenue in 2018 registered a growth of 37 per cent to hit  Dh25.694 billion ($6.995 billion), over FY 2017 revenue of Dh18.752 billion ($5.105 billion).

For the fourth quarter (October to December) 2018, Emaar’s revenue was Dh8.304 billion ($2.261 billion), 53 per cent higher than the Q4 2017 revenue of Dh5.432 billion ($1.479 billion).

Net profit in Q4 2018 was Dh1.954 billion ($532 million), 34 per cent higher than the net profit of Dh1.456 billion ($396 million) in Q4 2017, prior to considering the effect of the IPO of Emaar Development and forex movement.

In 2018, Emaar Properties had distributed an exceptional dividend of Dh4 billion ($1.089 billion) from the proceeds of Emaar Development IPO, highlighting the company’s commitment to delivering sustained value.

Emaar Malls and Emaar Development too distributed a cash dividend of Dh1.301 billion ($354 million) and special (interim) dividend of Dh1.040 billion ($283 million) respectively in 2018, it stated.

Chairman Mohamed Alabbar said: "Our strategy for 2018 was to launch and build premium real estate assets that gained strong investor response from regional and international markets. We also expanded our malls business to be relevant to changing customer aspirations, highlighted by the expansion of The Dubai Mall and the launch of Dubai Square."

"In the hospitality business, we aim to be asset-light and focus more on our operational strengths. With digital transformation and building an ownership mindset driving our growth, we will continue to create long-term value for our shareholders," he stated.

To date, Emaar has handed over more than 51,800 residential units in Dubai and other international markets. More than 29,800 residences are under development in the UAE and over 17,500 units in global markets, he added.

The hospitality and leisure, entertainment and commercial leasing businesses of Emaar together recorded revenue of Dh2.734 billion ($744 million), in line with FY 2017 revenue of Dh2.722 billion ($741 million).

It has also introduced an investment project Rove City Walk in 2018 where guest rooms were offered for sale with revenue share arrangement. The launch was very successful with record sale of Dh154 million ($42 million).

As part of its strategy to be asset-light, Emaar Hospitality Group signed definitive documentation with Abu Dhabi National Hotels to divest its entire economic interest in a portfolio of five hotels in Dubai. In 2018, the group’s hotel brands – Address Hotels + Resorts, and Vida Hotels and Resorts continued to record higher occupancy than Dubai’s industry average.

Emaar said its international business operations were equally strong in 2018, contributing 12 per cent to the total revenue. Revenue from overseas operations was Dh3.081 billion ($839 million).-TradeArabia News Service




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