Emaar Development 2017 net profit surges 30pc

14/02/2018 05:30 AST

Emaar Development, the UAE build-to-sell property development business unit of Dubai-based Emaar Properties has recorded a net profit of Dh2.74 billion ($747 million) for 2017, up 30 per cent over a net profit of Dh2.11 billion ($575 million) the year before.

Announcing the results for the period from January to December 31, 2017, Emaar Development said its total revenue surged 28 per cent to hit Dh8.86 billion ($2.41 billion) compared to Dh6.89 billion ($1.88 billion) in 2016.

The company has a sales backlog of Dh41 billion ($11 billion) as of December 31, 2017, highlighting its robust fundamentals with more than 24,000 residential units to be delivered over the next four years.

Emaar Development reported total sales of Dh18.03 billion ($4.91 billion) a growth of 25 per cent as compared to Dh14.41 billion ($3.92 billion) in 2016. This was driven by the launch of 9,531 residential units in about 21 new residential developments in various master-planned developments, it stated.

As the pioneer in developing integrated master-planned communities in the UAE, Emaar Development has handed over more than 34,700 residential units since 2002, said the statement from the company.

The launches in 2017 included: Creek Gate, Harbour Gate, Creek Rise, Address Harbour Point, 17 Icon Bay, Island Park and Cove in Dubai Creek Harbour; Park Heights I & II, Maple 3, Sidra 3, Park Ridge and Club Villas in Dubai Hills Estate; Golf Views, Urbana II & III and Golf links in Emaar South; Zabeel Square in Zabeel; Downtown Views II and Vida Dubai Mall in Downtown Dubai; and Vida Residence at Dubai Marina.

All the new launches, with a total project sales value of Dh20.08 billion (including sold and unsold units), recorded strong investor response, it stated.

Emaar Development marked its successful listing on the Dubai Financial Market (DFM) in the fourth quarter of 2017, the largest listing since 2014, and the third largest offering on DFM, said the statement.

It now has a significant landbank of over 167 million sq ft of gross floor area (GFA) for build-to-sell (BTS) assets in UAE, positioning the company to capitalise on the further growth of Dubai's residential property sector, it added.

On the solid results, Mohamed Alabbar, the chairman of Emaar Development and Emaar Properties, said: "The positive performance of Emaar Development highlights the potential of the company to shape the cities of the future in the UAE. With the IPO and listing of Emaar Development, we are creating long-term value for our shareholders."

"We will continue to focus on building iconic developments that catalyse the economy and support the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai," he added.

With over 10 mega-developments in its portfolio, Emaar Development has wholly-owned projects under development including Downtown Dubai, Arabian Ranches, Dubai Marina and Emirates Living; as well as joint venture projects including Dubai Hills Estate, Emaar South and Zabeel Square; and a joint development project - Dubai Creek Harbour, the 6-sq-km mega-development by the historic creek, anchored by the new global icon, Dubai Creek Tower.

The company recently unveiled Emaar Beachfront, a 10 million-sq-ft Miami-style destination offering exclusive access to residents to a private beach and uninterrupted views of the Arabian Sea, The Palm Jumeirah, Dubai Marina and the Dubai skyline.

The project, which was launched last month, recorded sell-out response with the total sales of the project exceeding Dh1 billion ($272 million).

Al Abbar said Emaar Development's strategy for 2018 and beyond was to create sustained and secure returns from its developments.

"In addition to maintaining its leadership role in prime residential real estate in Dubai, the company will focus on leveraging its significant land bank and partnership with government-related entities to create sustained value for its shareholders," he added.

Trade Arabia