Emaar sales increase by 53% at Dhs5.979 billion in first quarter

Business Bureau, Gulf Today

Emaar Properties achieved one of the highest quarterly property sales in Dubai during the first quarter (January to March) of 2019 recording an increase of 53 per cent to Dhs 5.979 billion (US$ 1.628 billion) compared to the Q1 2018 sales of Dhs 3.906 billion (US$ 1.063 billion).

The sales to international customers more than doubled in Q1 2019 to Dhs2.645 billion (US$ 720 million) compared to Dhs1.187 billion (US$ 323 million) in Q1 2018, highlighting the significant interest of international investors in Dubai real estate and the strength of Emaar brand.

Dubai has emerged as a global hub for all businesses including financial services, logistics, travel, hospitality and trade, and is steadily growing in other sectors such as healthcare, technology and clean energy. This growth in these businesses is nurturing a strong and diverse knowledge base and community of trained professionals. The growth in the knowledge economy and the vibrance of city are the primary drivers of the growth in sales of real estate recorded by Emaar in the first quarter of the year.

Emaar reported a net profit of Dhs1.742 billion ($474 million) in Q1 2019 compared to the net profit of Dhs 1.625 billion (US$ 442 million) during the same period in 2018. Q1 2019 revenue was Dhs5.894 billion (US$ 1.605 billion), similar to the revenue in the first quarter of 2018.

Emaar’s sales backlog, reflecting the revenues to be recognised over next three to four years, increased from Dhs 48.404 billion (US$ 13.178 billion) as of Q4 2018 to Dhs 50.012 billion (US$ 13.616 billion) at the end of Q1 2019. Emaar has a sales backlog in Dubai of Dhs 37.960 billion (US$ 10.335 billion) similar to the backlog in Q1 2018 in spite of the significant increase in revenue to Dhs 15.411 billion (US$ 4.196 billion) in 2018.

The strong backlog reflects the robustness of Emaar’s financial position to maintain high revenue, profitability and return to shareholders in the foreseeable future.

Mohamed Alabbar, Chairman of Emaar Properties, said: “Our focus on timely project execution and cash flow generation underlines our market leadership. Emaar’s operational strategy of building premium residential assets, and expanding the malls, hospitality and entertainment operations to meet the aspirations of the new generation of customers continues to drive our growth. The surge in sale of Emaar’s real estate developments in Dubai to international investors not only highlights Dubai’s position as the region’s leading business centre and hub city, but as the one of the most dynamic and growing market economies.”

Emaar Development, the UAE build-to-sell property development business majority-owned by Emaar Properties, recorded Q1 2019 revenue of Dhs 3.341 billion (US$ 910 million) compared to Dhs3.265 billion (US$ 889 million) in Q1 2018.

The quarter also highlighted several firsts by Emaar including the provision of a complimentary 3-year renewable business license and renewable residency visa for investors in the Executive Residences in Dubai Hills Estate. Further, Emaar recently launched the first real estate project in collaboration with the fashion icon of the Arab world - ELIE SAAB at Emaar Beachfront.

Emaar also launched Arabian Ranches III, a secure gated townhouse neighbourhood as well as three phases of Expo Golf Villas in Emaar South, which recorded sell-out investor response. Dubai Creek Harbour, the six square kilometre mega-development, described as ‘The World of Tomorrow’ unveiled several residential projects including Palace Residences.

Emaar Malls , the shopping malls and retail business majority-owned by Emaar Properties, reported a growth of 4 per cent in Q1 2019 revenue to AED 1.075 billion (US$ 293 million) compared to Q1 2018. Emaar Malls assets maintained strong occupancy levels at 92 per cent, and robust visitor arrivals at 36 million during Q1 2019, 3 per cent higher than 35 million visitors during Q1 2018. Emaar Malls is today of the world’s largest mall operators with a total gross leasable area of 6.7 million square feet.

In line with its omnichannel retail strategy, earlier this year, Emaar Malls fully acquired Namshi, the leading regional fashion e-commerce retailer. This follows the Group acquiring the remaining stake of Global Fashion Group (GFG) in Namshi, in an all-cash transaction of Dhs 475.5 million (Euro 114.3 million; US$ 129.5 million).

The hospitality & leisure, entertainment and commercial leasing businesses of Emaar together recorded revenue of Dhs 738 million (US$ 201 million), with the hotels under Emaar Hospitality Group (including managed hotels) reporting an average occupancy of 87 per cent, higher than the industry average.

Highlighting the diversified recurring revenue streams of Emaar, the company’s malls & retail, hospitality & leisure, entertainment and commercial leasing, together with a revenue of Dhs 1.816 billion (US$ 494 million) now account for 31 per cent of the total Group revenue.

Emaar has a landbank of over 1.6 billion square feet in key markets and is the world’s largest property company outside China, with a brand value of over US$ 2.7 billion.

Emaar Properties PJSC, listed on the Dubai Financial Market, is a global property developer and provider of premium lifestyles, with a significant presence in the Middle East, North Africa and Asia. One of the world’s largest real estate companies, Emaar has a land bank of 1.6 billion sq ft in the UAE and key international markets.