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Wed 14 Feb 2018 04:08 PM

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Emaar Properties reports 16% increase in full-year profits

Chairman Mohamed Alabbar said last week he was worried about 2019

Emaar Properties reports 16% increase in full-year profits
Alabbar said Emaar’s “significant sales backlog and a robust development pipeline in the UAE and in high-growth international markets” will ensure the company continues its growth strategy.

Emaar Properties reported a full-year profit of $1.5bn (AED5.7bn), up 16 percent on the previous year.

The full-year revenue for 2017 was $5.1bn (AED18.8bn), an increase of 21 percent on 2016.

Emaar raised $1.3 billion in November when it sold a 20 percent stake, or 800 million shares, in a listing of unit Emaar Development.

Chairman Mohamed Alabbar said last week he was worried about 2019 and would prefer to keep debt levels "reasonable."

Emaar Development reported this month a 30 percent increase in 2017 profit to 2.74 billion dirham. Emaar Malls, another unit, reported a 27 percent rise in fourth quarter profit to 574 million dirhams.

Emaar Properties is part of a joint-venture building The Tower in Dubai, which it has said would be the world's tallest tower, outdoing the more than 160-storey Burj Khalifa, built by the developer.

The Tower at Dubai Creek Harbour is scheduled to be completed in 2020.

Alabbar said Emaar’s “significant sales backlog and a robust development pipeline in the UAE and in high-growth international markets” will ensure the company continues its growth strategy.

Emaar’s hospitality & leisure, commercial leasing and entertainment businesses recorded revenue of $741m (AED2.7bn) in the full-year 2017.

The three hotel brands – Address Hotels + Resorts, Vida Hotels and Resorts and Rove Hotels recorded an average occupancy of 79 percent, higher than Dubai’s industry average.

Emaar Hospitality Group opened three new hotels in 2017 – Address Boulevard in Downtown Dubai, Rove Healthcare City and Rove Trade Centre. The group has a number of upcoming hotel projects in the UAE and other international markets including Saudi Arabia, Turkey, Egypt, Bahrain and The Maldives.