UAE-based Emaar Properties has recorded a revenue of Dh5.58 billion ($1.52 billion) for the first three months, up 37 per cent compared to Dh4.07 billion ($1.1 billion) over last year mainly led by significant progress achieved on projects under construction and the growth in malls and hospitality businesses.

Announcing the Q1 results, the leading global developer said its net profit grew by 20 per cent to Dh1.665 billion ($453 million), prior to considering the effect of the IPO of Emaar Development compared to the net profit of Dh1.384 billion ($377 million) during the same period in 2017.

The net profit subsequent to considering impact of Emaar Development IPO in 2017 is Dh1.501 billion ($409 million) for the period, an increase of 8.5 per cent over the same period last year, it stated.

Chairman Mohamed Alabbar said: "Our strategy to build long-term value for our shareholders is to focus on creating future cities that are relevant to our new generation, and to continue to drive the success of our hospitality, malls, leisure and entertainment businesses."

"We are a customer-first company, and we focus on rapid construction and project delivery. Our achievements are the result of working and winning together – by being open to ideas, welcoming innovation and promoting smart thinking," noted Alabbar.

Emaar Development, the UAE build-to-sell property development business majority-owned by Emaar Properties, recorded strong property sales of Dh3.906 billion ($1.063 billion) during Q1 2018. Emaar Development now has a backlog of Dh41 billion ($11 billion), highlighting the strong revenue recognition in the coming years.

Emaar’s shopping malls, hospitality and leisure and entertainment businesses together generated recurring revenue of Dh1.833 billion ($499 million) during Q1 2018, accounting for 33 per cent of the total Group revenue. This is 15 per cent higher than the Q1 2017 revenue of Dh1.592 billion ($433 million) from these business entities.

Emaar Properties distributed total cash dividend of Dh4 billion ($1.089 billion) from the proceeds of the successful IPO of Emaar Development, in two tranches to the company’s shareholders, said the statement from the Dubai developer.

In the property business, Emaar marked several new residential launches in Dubai, including the unveiling of a private island destination, Emaar Beachfront. Innovative concepts in modern living were also launched in Dubai Creek Harbour, Dubai Hills Estate, Emaar South and Downtown Dubai.

In its other businesses, Emaar Malls recorded revenues of Dh1.038 billion ($283 million) for the three-month period, up 24 per cent over Dh836 million ($228 million) last year.

Emaar has also launched Dubai Hills Mall, a regional mall located in Dubai Hills Estate, with construction progressing at a rapid pace. The Mall will have a GLA (gross land area) of 2 million sq ft and will feature 650 retail and dining outlets including ‘fast fashion’ stores, restaurants and cafés.

The Dubai developer said its hospitality, commercial leasing and entertainment businesses have registered solid growth with revenues of Dh795 million ($216 million), up 5 per cent over Dh756 million ($206 million) last year.

Alabbar said Emaar Hospitality Group also marked a historic milestone of 50 hotel projects in its portfolio currently, including 35 upcoming projects in the UAE and international markets, as well as 15 hotels and serviced residences that are operational in Dubai.

"In key openings, the Group opened Rove Dubai Marina in April 2018, and signed management agreements to operate hotels in several locations in Sharjah and Ras Al Khaimah," he stated.

"This is in addition to its expanding presence in international markets such as Saudi Arabia, Bahrain, Egypt, Turkey and The Maldives," he added.-TradeArabia News Service