15/02/2017 05:32 AST
Global developer Emaar Properties PJSC recorded a robust full-year 2016 net profit of AED5.233 billion ($1.425 billion), 28 percent higher as compared to the FY 2015 net profit of AED4.082 billion ($1.111 billion). Emaar achieved FY 2016 revenues of AED15.540 billion ($4.231 billion), an increase of 14 percent over FY 2015 revenues of AED13.661 billion ($3.719 billion).
Highlighting the strength of its diversified business model, recurring revenues from Emaar's shopping malls, hospitality, entertainment and leisure businesses for 2016 was AED5.976 billion ($1.627 billion) similar to 2015, despite the ongoing redevelopment at The Address Downtown Dubai. The recurring revenue businesses now account for 38 percent of the total Group revenue.
Emaar's international operations recorded revenue of AED2.665 billion ($726 million) during FY 2016 accounting for 17 percent of the total Group revenue.
With increase in revenue contribution from real estate, the performance of the malls and hospitality businesses, the fourth-quarter (October to December) 2016 net profit of Emaar increased by 56 percent to AED1.613 billion ($439 million) compared to Q4 2015 net profit of AED1.034 billion ($281 million), and 41 percent higher than the Q3 (July to September) 2016 net profit of AED1.145 billion ($312 million).
Revenue for Q4 2016 was AED4.437 billion ($1.208 billion), 16 percent higher than the Q4 2015 revenue of AED3.812 billion ($1.038 billion), and 15 percent more than the Q3 2016 revenue of AED3.846 billion ($1.047 billion).
Emaar has handed over around 41,500 residential units, 33,947 of them in Dubai. Highlighting its strong development potential, Emaar has a land bank of 190 million sq m globally including a significant 25 million sq m in the UAE.
Investments in premium real estate contributed to robust property sales in Dubai during 2016 at AED14.4 billion ($3.92 billion), which is 41 percent higher than the FY 2015 sales value of AED10.23 billion ($2.79 billion).
Sales across various international markets in 2016 were valued at AED3.9 billion ($1.1 billion). The Group now has a backlog of AED42.977 billion ($11.701 billion) to be recognized in the next few years, underlining its strong financial fundamentals.
Highlighting the confidence of regional and international investors in Emaar, in 2016 the company concluded a $750 million Sukuk listed on Nasdaq Dubai at competitive pricing.
Mohamed Alabbar, Chairman of Emaar Properties, said that the impressive growth achieved by the company in 2016 underlines the success of the company's long-term investments in creating sustained value for its stakeholders.
He added: "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.
"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."
Emaar's strategy of shaping the future today was defined in 2016 with Dubai Hills Estate, the 11 million sq m 'green city within the city,' which will also feature a world-class retail hub and is set around an 18-hole championship golf course.
Emaar has set another new milestone in urban development with the launch of The Tower in Dubai Creek Harbour, billed to be one of the iconic attractions in the world, and set in the heart of a 6 sq km mega-development. Also featuring a retail district for high-end brands, Dubai Creek Harbour creates a brand-new skyline
Saudi Gazette
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