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Emaar Properties has recorded a net operating profit of Dh3.35 billion, a 30 per cent gain on 2013’s Dh2.56 billion, on revenues of Dh9.89 billion.
The revenue contribution from its malls, retail and hospitality interests totalled Dh5.36 billion, a gain of 12 per cent over the Dh4.8 billion recorded a year ago. The cost of revenues was down 23 per cent to Dh3.99 billion.
The international operations are now starting to constitute a sizeable revenue stream of its own, generating Dh1.89 billion in 2014 for a 19 per cent stake of the gross. This is a 63 per cent increase from a year ago, as deliveries were made in Egypt, Saudi Arabia, Turkey, Lebanon and Pakistan. New launches included The Address Residence Istanbul by the company’s Turkey subsidiary, and Emaar Square, a commercial precinct in Jeddah.
Emaar’s shares closed 33 fils higher at Dh7.58 on Sunday. The 52-week high was Dh12 and the lowest at Dh5.9. In a statement issued by the company, the size of its land bank totals 238 million square metres, which includes those held overseas. Total assets were valued at Dh74 billion, “over 690,000 square metres of recurring revenue generating assets and 12 hotels with over 1,900 rooms”.
In fact, the hospitality division too is coming into its own, with revenues of Dh1.68 billion, which was 17 per cent of the total for last year and 11 per cent higher than 2013’s Dh1.51 billion. Apart from The Address chain, the developer also operates a further two chains, Vida and the recently launched mid-tier Rove, which is in alliance with Meraas Holding.
Specifically looking at the fourth quarter, revenues totalled Dh2.85 billion, 44 per cent up from the third quarter tally of Dh1.97 billion. It was during the fourth quarter that Emaar launched the Dubai Creek Harbour development in tandem with Dubai Properties at The Lagoons master-development.
Net operating profit for fourth quarter was Dh861 million, 14 per cent higher than the previous quarter’s Dh758 million.
“The international property arm has delivered strong growth rates — providing comfort to investors,” said Sameer Lakhani, Managing Director at Global Capital Partners. “What will be interesting to see is how Emaar navigates the year ahead in an environment of slowing domestic sales.
“On the plus side, there is the widening of the revenue base and creating value through the spin-off of the malls division and the planned one of the hospitality.”
Source: Staff Report, gulfnews.com