Slowdown? Emaar Properties 2018 net up 30%

By Eudore R. Chand

DUBAI 15 February 2019: Emaar Properties has reported a net profit of Dh7.216 billion (US$ 1.965 billion) in 2018, a 30 per cent increase over the net profit of Dh5.561 billion (US$ 1.514 billion) in 2017, prior to considering the effect of the IPO of Emaar Development and forex movement.

Revenue in 2018 was Dh25.694 billion (US$ 6.995 billion), a growth of 37 per cent over FY 2017 revenue of Dh18.752 billion (US$ 5.105 billion).

During the fourth quarter (October to December) 2018, Emaar’s revenue was Dh8.304 billion (US$ 2.261 billion), 53 per cent higher than the Q4 2017 revenue of Dh5.432 billion (US$ 1.479 billion). Net profit in Q4 2018 was Dh1.954 billion (US$ 532 million), 34 per cent higher than the net profit of Dh1.456 billion (US$ 396 million) in Q4 2017, prior to considering the effect of the IPO of Emaar Development and forex movement.

Dividend
In 2018, Emaar Properties distributed an exceptional dividend of Dh4 billion (US$ 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 ($354 million) and special (interim) dividend of Dh1.040 billion (US$ 283 million) respectively in 2018.

Mohamed Alabbar, Chairman of Emaar Properties, 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.”

Key Performance Highlights
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.

In premium property development, Emaar launched world-class residences in Dubai Creek Harbour, Dubai Hills Estate, Emaar Beachfront, Emaar South, Downtown Dubai and Arabian Ranches during 2018. The first homes in Dubai Creek Harbour will be handed over this year, while Dubai Hills Estate is also coming to life with the opening of the Dubai Hills Golf Club.

The robust growth of Emaar in 2018 was supported by the positive performance of Emaar Development, the UAE build-to-sale property development business majority-owned by Emaar as well as by Emaar Malls.

Emaar Development
Emaar Development’s total revenue in 2018 was Dh15.433 billion (US$ 4.202 billion), a growth of 74 per cent over FY 2017 revenue of Dh8.863 billion (US$ 2.413 billion). Highlighting the strong investor interest for Emaar’s residential launches, Emaar reported total sales of Dh14.394 billion (US$ 3.919 billion) in UAE during 2018. Emaar now has a sales backlog of Dh36.454 billion (US$ 9.925 billion) in UAE to be recognised as revenue in the next three to four years.

Emaar Malls
Emaar Malls posted FY 2018 revenue of Dh4.446 billion (US$ 1.210 billion), an increase of 23 per cent, compared to FY 2017 revenue of Dh3.629 billion (US$ 988 million).

Together, the malls and retail centres of Emaar Malls welcomed 136 million visitors in 2018, 5 per cent higher than FY 2017. Emaar Malls marked the 10th anniversary of The Dubai Mall – underlining its reputation as the world’s most-visited retail and lifestyle destination for the fifth consecutive year.

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

International Business
Emaar’s international business operations were equally strong in 2018, contributing 12 per cent to the total revenue. Revenue from overseas operations was Dh3.081 billion (US$ 839 million).

The No 1 listed developer by market capitalisation in the MENA region under MSCI EM Index, Emaar has a landbank of over 1.6 billion square feet in key markets. Today, Emaar is the world’s largest property company outside China, with a brand value of over US$ 2.7 billion. Emaar is also among the top 10 brands in the Middle East, with its brand value increasing by 39 per cent over 2017.



Dubai Gazette