Emaar Properties PJSC recorded a net profit of AED1.384 billion ($377 million) in the first quarter (January-March) of 2017, an increase of 15% over the same period last year at AED1.205 billion ($328 million).
The company’s total revenue for Q1 2017 was AED4.072 billion ($1.109 billion), an increase of 15% over Q1 2016 revenue of AED3.529 billion ($961 million). Recurring revenues from the malls, hospitality, entertainment and leisure businesses of Emaar were AED1.592 billion ($433 million) in Q1 2017 contributing 39% to the total group revenue.
“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 enhances efficiency,” says Emaar Properties chairman Mohamed Alabbar.
“We have seen an increase in property sales in Dubai, and we are on track with our construction milestones. Emaar’s performance underpins the positive economic environment of Dubai led by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE vice president & prime minister and ruler of Dubai,” he adds.
Expanding malls, hospitality portfolio
During Q1 2017, Emaar Malls recorded revenues of AED836 million ($228 million), similar to Q1 2016 revenue of AED833 million ($227 million).
Net profit from the malls business during Q1 2017 was AED539 million ($147 million), similar to Q1 2016 net profit of AED529 million ($144 million) and 19% higher than Q4 2016 net profit of AED452 million ($123 million).
The shopping mall assets of Emaar Malls, including its flagship – The Dubai Mall – welcomed over 34 million visitors in Q1 2017, 10% higher than Q1 2016. With a GLA of about 6 million sqft in Dubai, Emaar Malls is expanding The Dubai Mall’s Fashion Avenue by another 1 million sqft built-up area this year. Additionally, The Dubai Mall is adding new retail and leisure attractions with the Boulevard, Fountain Views and Zabeel expansions.
Emaar’s hospitality, commercial leasing and entertainment businesses reported revenues of AED756 million ($206 million) during Q1 2017, an increase of 5% over the same period last year at AED722 million ($197 million).
Emaar’s hospitality segment marked the launch of two new hotels in Q1 2017 including Address Boulevard, a city lifestyle resort under the portfolio of Address Hotels + Resorts, and Rove Healthcare City. A contemporary midscale brand, Rove Hotels, is being developed as a joint venture with Meraas Holding with plans to roll out 10 hotels in Dubai by 2020.
In addition, Emaar is in the course of expanding its hospitality business with 26 upcoming projects in the UAE, Turkey, Egypt, Saudi Arabia and Bahrain.