Dubai-based developer Emaar Properties has been upgraded to Baa3 long-term issuer rating by Moody’s Investor Service with a ‘stable’ outlook.
The company behind the Burj Khalifa, the world’s tallest building, said the upgrade highlighted “its financial strength and ability to create sustained shareholder value through its ongoing projects and assured recurring revenues from its malls and hospitality businesses”.
Mohamed Alabbar, chairman of Emaar Properties, said: “Emaar has recorded significant growth in property sales in our core market of Dubai and other international markets.”
He revealed that this year, Emaar and Emaar Malls together have distributed over AED2.375 billion ($646 million) in dividends to shareholders.
He added that the company has a total backlog in the UAE alone valued at AED28.3 billion to be recognised over the next four to five years.
Alabbar said that having delivered over 40,200 homes already, Emaar has nearly 13,000 residential units in development in the UAE with a land bank of over 195 million sq m in Dubai and international markets.
In its report, Moody’s said: “We believe that Emaar’s market leadership position and balance sheet strength – in combination with stable recurring revenues and a sizeable property sales backlog – will support the company’s credit profile during the currently challenging market conditions and as it enters a phase of elevated capex ahead of the Dubai World Expo 2020.”
Among the headline developments of Emaar is The Tower at Dubai Creek Harbour, which will be 100 metres taller than the Burj Khalifa.
Emaar recorded first-quarter net profit of AED1.205 billion ($328 million), an increase of 17 percent compared to the same period last year.
Led by significant progress in construction of its projects, Emaar’s Q1 2016 revenue was AED3.529 billion, 17 percent higher than Q1 2015.
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