Emaar records 37% growth in net operating profit
This is 37 percent higher than the net operating profit for the first nine months of 2013 at AED 1.812 billion ($493 million).
Third quarter (July to September) net operating profit reached AED 758 million ($206 million), 30 percent higher than AED 581 million ($158 million) a year earlier.
Highlighting the successful listing of the company's shopping malls and retail subsidiary on the Dubai Financial Market through an IPO that recorded total orders of over AED 172 billion ($46.8 billion), Emaar Malls recorded a total revenue of AED 1.898 billion ($517 million) during the first nine months of 2014. At 27 percent of Emaar's total revenue, this is 15 percent higher than the nine-month 2013 shopping malls revenue of AED 1.646 billion ($448 million).
The growth in malls business was underlined by its flagship asset, The Dubai Mall, which welcomed over 58 million visitors, 5 percent higher than the 55 million recorded in the first nine months of 2013.
Emaar's hospitality and leisure business recorded a nine-month revenue of AED 1.196 billion ($326 million), 17 percent of total revenue, by drawing on the upbeat performance of Dubai's tourism sector.
This is 13 percent higher than the nine-month 2013 hospitality & leisure revenue of AED 1.059 billion ($288 million). The Address Hotels + Resorts, Emaar's flagship hotel brand, recorded an average occupancy of 84 percent through the same period, an industry-best.
The recurring revenue businesses (Malls, Hospitality and Retail) accounted for AED 3.808 billion ($1.037 billion), which is 54 percent of Emaar's total revenue during the first nine months of 2014. The recurring revenue businesses have recorded steady growth in their share of total revenue accounting for 49 percent in full-year (FY) 2012, 46 percent in FY2013 and 54 percent for 9 months of 2014.
Emaar's core competency of creating premium real estate assets generated significant sales growth in the first nine months of 2014. The total sales value of Emaar's projects in Dubai was AED 10.5 billion ($2.9 billion), 15 percent higher than the nine-month 2013 property sales of AED 9.1 billion ($2.5 billion).
In addition to project launches such as BLVD Heights and Opera Grand in Downtown Dubai, Emaar's flagship mega-development, Emaar is unveiling new joint venture developments including the 6 million sq m waterfront project Dubai Creek Harbour at The Lagoons with Dubai Holding in Mohammed bin Rashid City (MBR City), and the 11 million sq metres (2,700 acres), Dubai Hills Estate with Meraas Holding.
The company's international operations also reported positive growth through the first nine months of the year contributing a revenue of AED 1.334 billion ($363 million), 73 percent higher than the nine-month 2013 international revenue of AED 770 million ($210 million).
The company's international operations now account for 19 percent of the total revenue. ■