Emaar Properties records 28% growth in FY 2016

RetailME Bureau

Emaar Properties PJSC has recorded full-year 2016 net profit of AED5.23 billion ($1.43 billion), 28% higher compared to the FY 2015 net profit of AED4.08 billion ($1.11 billion).

Emaar achieved FY 2016 revenues of AED15.54 billion ($4.23 billion), an increase of 14% over FY 2015 revenues of AED13.66 billion ($3.72 billion).

Recurring revenues from Emaar’s shopping malls, hospitality, entertainment and leisure businesses for 2016 was AED5.98 billion ($1.63 billion) similar to 2015, despite the ongoing redevelopment at The Address Downtown Dubai. The recurring revenue businesses now account for 38% of the total Group revenue.

Emaar’s international operations recorded revenue of AED2.67 billion ($726 million) during FY 2016 accounting for 17% of the total Group revenue.

Driven by increase in revenue contribution from real estate and the performance of the malls and hospitality businesses, Emaar’s fourth-quarter (October to December) 2016 net profit increased by 56% to AED1.61 billion ($439 million) compared to Q4 2015 net profit of AED1.03 billion ($281 million). Revenue for Q4 2016 was AED4.44 billion ($1.21 billion), 16% higher than the Q4 2015 revenue of AED3.81 billion ($1.04 billion).

The impressive growth achieved by Emaar Properties in 2016 underlines the success of the company’s long-term investments in creating sustained value for its stakeholders, feels chairman Mohamed Alabbar

“Emaar’s growth reflects the dynamism of the UAE, which has evolved as a global hub for business and leisure. As the nation sets new milestones in futuristic developments, Emaar will continue to invest in next-generation technology to deliver modern lifestyles that meet the lifestyle aspirations of our youth and future generations,” he adds.

“This ‘future now’ strategy sets the foundation for our growth in the coming years, which reflects the growth aspirations of Dubai as a smart and sustainable city, steered by the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE vice president and prime minister and ruler of Dubai,” Alabbar continues.

Emaar Malls, the shopping malls and retail business majority-owned by Emaar Properties, recorded a net profit of AED1.88 billion ($510 million) during 2016, an increase of 13% over the FY 2015 net profit of AED1.66 billion ($451 million). FY 2016 revenue recorded a growth of 8% to AED3.23 billion ($879 million) compared to FY 2015 revenue of AED3 billion ($815 million).

The shopping malls assets of Emaar Malls together welcomed 125 million visitors during 2016, similar to annual footfall during 2015. The Dubai Mall set a similar footfall level of 80 million visitors for the third consecutive year despite ongoing expansion in and around the mall.

The hospitality and leisure, commercial leasing and entertainment business of Emaar recorded revenues of AED2.75 billion ($748 million) during the year ended December 31, 2016. Average occupancy of hotels under Emaar Hospitality Group in Dubai was 85%, higher than the industry average and 5% higher than last year.

Highlighting the confidence of regional and international investors in Emaar, last year the company concluded a $750 million Sukuk listed on Nasdaq Dubai at competitive pricing.