Dubai property recovery boosts Emaar Q1

Marked by the increased sales of properties in Dubai, delivery of homes in Egypt and strong recurring revenues from the shopping malls and hospitality businesses, Emaar Properties has announced a 44 per cent surge in its quarterly net profits, from Dh421m ($115m) in Q1, 2011, to Dh606m ($165m) in Q1 2012. In all, Emaar handed over 158 residential units during the first three months of 2012, comprising of 117 units in Dubai and 41 units in the international markets. The company also handed over 180,000 sq ft of commercial space in the first quarter of the year. New unit sales in Dubai also increased significantly during the first three months of 2012, exceeding Dh620m ($169m) during the period. Emaar also unveiled an exclusive collection of Golf Homes at Arabian Ranches Golf Club. The launch received strong investor response with a majority of the units, valuing approximately Dh100m ($27m), sold in the first two days. “We have entered a new era of growth for Emaar, focused on identifying new growth opportunities in line with the fast-changing economic environment,” proclaimed Mohamed Alabbar, Chairman of Emaar Properties. In a media statement, Alabbar added: “Our strength has always been in envisaging and executing prime real estate assets that contribute significantly to the economies we serve in. In Dubai, our assets are a prime driver of tourism, hospitality and retail, the traditional sectors that boost economic growth.” The property major recorded revenues of Dh1.821bn ($496m) for Q1 012, with shopping malls and retail businesses contributing Dh651m ($177m), and hospitality and leisure businesses contributing Dh403m ($110m) during the period. The revenues from business segments of malls and hospitality in this quarter increased by 25 per cent as compared to same period in 2011 and accounted for 58 per cent of the company’s total revenue. “We are thankful to the guidance and support of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai, who inspires us to work towards setting new milestones, such as the newly announced ‘Dubai Modern Art Museum & Opera House District’ in Downtown Dubai, that add to the civic pride of the city. The expansion that we have announced to The Dubai Mall and our hospitality business are all geared to generate long-term value creation for our stakeholders,” Alabbar added. With the establishment of Downtown Dubai as a major hub for tourism and shopping, the number of visitors to The Dubai Mall during the first three months of 2012 increased by 22 per cent to 16 million. The Address Hotels + Resorts recorded its best performance since inception with an average occupancy of 92 per cent during this period. Welcoming 2012 with the spectacular New Year’s Celebrations at Downtown Dubai that hosted over 1 million visitors in Emaar’s flagship development, the company plans to launch new initiatives and projects during the year that are set to further energise the company’s operations in Dubai, its home market.