Emaar Properties on Sunday said net profit for the first quarter 2017 rose 15 percent, driven by its hospitality, entertainment and leisure businesses, and property sales in Dubai, which grew 44 percent the first three months of the year.
Net profit rose to AED1.38billion ($377million) in the first quarter from AED1.21bn ($328m) reported in same period last year, while revenue jumped 15 percent to AED4.07bn ($1.11bn) from AED3.53bn ($961m).
Recurring revenue from the malls, hospitality, entertainment and leisure businesses reached AED1.59bn ($433m), contributing 39 percent of the total group revenue.
Mohamed Alabbar, chairman, Emaar, said: “Along with our core business of creating premium real estate in Dubai and other international markets, our malls, hospitality and leisure businesses have also recorded growth. This is driven by our new customer-oriented digital strategy that helps optimise our resource use and enhance efficiency.”
Property sales in Dubai rose by 44 percent to AED6.05bn ($1.65bn) compared to AED4.19bn ($1.14b). The group’s backlog reached AED46.245bn ($12.59bn).
New property launches in the first quarter included Downtown Views II in Zabeel area of Downtown Dubai; Vida Residences in Dubai Marina; Creek Gate and Harbour Gate in Dubai Creek Harbour, and Golf Views apartments and Urbana III townhouses in Emaar South.
“We have seen an increase in property sales in Dubai, and we are on track with our construction milestones,” he added.
Revenue from Emaar’s international operations rose 62 percent to AED806m ($219m) from AED499m ($136m), contributing 20 percent of the total group revenue.
Emaar Malls revenue stood at AED836m ($228m) for the first quarter from AED833m ($227m) same period 2016. Net profit stood at AED539m ($147m) compared to AED529m ($144m).
The developer’s hospitality, commercial leasing and entertainment businesses saw revenue increase by five percent to AED756m ($206m) from AED722m ($197m).
In March, the company approved a cash dividend of AED1.07bn ($292m), equivalent to 15 percent of the share capital. The latest statement puts the value of its assets at AED 179bn ($49bn).For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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