Dubai-based Emaar Properties recorded a 15% growth in net profit to AED2.83bn during the first six months of 2017, compared to AED2.47bn during the same period last year.
H1 2017 revenue was AED7.86bn, an increase of 8% over H1 2016 revenue of AED7.25bn.
Emaar also announced a plan to list its UAE Real Estate development business through up to 30% share offering on the Dubai Financial Market (DFM). The funds raised through the sale of equity will be primarily distributed as dividends to shareholders. This will ensure that the value of this business is properly recognised, thereby enhancing value for Emaar shareholders, the company said.
Recurring revenue from Emaars shopping malls and retail, hospitality and leisure, commercial leasing and entertainment businesses in H1 2017 was AED3.01bn, which represents 38% of the total revenue, the company said.
Emaars revenue from its international development recorded a growth of 64% in H1 2017 to AED1.69bn, compared to the H1 2016 international revenue of AED1.03bn. This was underpinned by significant progress in projects achieved in key markets including Egypt, Turkey, India, and Saudi Arabia, among others. Emaars international development now contribute 22% to the total group revenue, it said.
In Q2 2017, Emaar recorded a net profit of AED1.45bn, an increase of 14% over Q2 2016 net profit of AED1.27bn.
Mohamed Alabbar, chairman of Emaar Properties, said: Organisation-wide, we are marking a transformational change to strengthen project management and service excellence led by digital technology. At every stage of development, we place emphasis on being more efficient and responsive to the aspirations of our customers, and to create long-term value for our stakeholders.
This complements the transition of the nation into a smart economy led by the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai. As a year-round tourism and retail destination, and with a focus on infrastructure development, the UAE has evolved as a global business and leisure hub, and through our projects, we are contributing to the nation in driving sustained economic growth.
During the first six months of 2017, Emaar recorded property sales in Dubai of AED10.8bn, 22% higher than AED8.9bn during the same period in 2016.
This growth was led by residential launches in Emaars flagship projects including Dubai Creek Harbour, Downtown Dubai, Dubai Hills Estate, and Emaar South the smart city hubs of the future. The new residential project launches in the first six months of the year included Downtown Views II and Vida Dubai Mall in Downtown Dubai, Vida Residences in Dubai Marina, Creek Gate, Harbour Gate and Creek Rise in Dubai Creek Harbour, Park Heights I & II and Maple 3 in Dubai Hills Estate and Golf Views apartments and Urbana III stacked townhouses in Emaar South.
A highlight of Emaars property development portfolio was the completion of foundation work for the Dubai Creek Harbour Tower. More than 145 barrette piles have been laid to depths of over 72m to secure the super-tall structure. Emaar also achieved the challenging engineering feat of designing, constructing and lifting an iconic Sky Bridge that links the new Address Sky View hotel with the Address Residences Sky View in Downtown Dubai.
With robust sales in Dubai, Emaar now has a total backlog of AED49.5bn including a backlog of over AED40bn in Dubai, to be recognised in the next few years, a testament to the companys strong financial fundamentals.
Emaar Malls, the shopping malls and retail business majority-owned by Emaar Properties, reported H1 2017 net profit of AED1.02bn, 3% higher than H1 2016 net profit of AED987mn. The shopping mall assets of Emaar Malls welcomed over 65 million visitors in the first half of 2017, an increase of 7% over H1 2016.
The hospitality and leisure, commercial leasing, and entertainment businesses of Emaar recorded H1 2017 revenue of AED1.39bn, which is 7% higher than the H1 2016 revenue of AED1.29bn.
Emaar further strengthened its hospitality portfolio in the first half of the year with the opening of three properties Address Boulevard in Downtown Dubai, Rove Healthcare City, and Rove Trade Centre.