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Emaar Properties reported on Sunday a 16 per cent increase in second quarter net profit as robust performances from its shopping malls, retail and hospitality businesses underlined first half growth.
The Dubai-based developer made Dh1.179 billion ($321 million) in the three months to June 30, compared to the Dh1.020 billion it made in the same period a year earlier, according to an emailed statement. Revenue for the period was Dh3.484 billion, a 16 per cent increase on the Dh3.338 billion in revenue it pulled in a year ago.
First half profit rose 12 per cent to Dh2.205 billion, up from Dh1.977 a year ago. Half-year revenue climbed 13 per cent to Dh6.497 billion, a 13 per cent rise on the Dh5.730 billion in revenue it reported for the same period last year.
The developer, which has listed its shopping mall and Egyptian units, said its shopping malls, retail and hospitality businesses contributed Dh2.9 billion in the first six months of the year, 45 per cent of all revenue.
The Dh1.171 billion in international revenues, up 36 per cent year on year, represented 18 per cent of total revenue.
The company said end-user and international investor demand boosted property sales with its property business accounting for Dh3.597 billion in revenue over the first half. In Dubai, the company made Dh6.12 billion in sales over the same period.
Sales in international markets were Dh2.339 billion. In Egypt, where subsidiary Egyptian Misr is listed on The Egyptian Stock Exchange, net sales in the first half were Dh1.9 billion, 20 per cent more than a year earlier.
“The positive performance of Emaar is led by our deep-rooted commitment to create sustained value for our stakeholders. It reflects the success of our strategic approach of building value by monetising core performing businesses and international operations as well as strengthening our high-performing subsidiaries,” stated Mohammad Alabbar, Chairman of Emaar Properties.
Hospitality and leisure
The developer said its strategy for 2015 “is centred on efficient project management, seamless customer service and sustained value creation.”
Revenue from the developers hospitality and leisure business was Dh884 million and occupancy at its flagship Address Hotels and Resort was 87 per cent across the first six months.
Emaar Malls, the listed shopping malls and retail subsidiary which includes The Dubai Mall, made Dh845 million net profit, 37 per cent more than a year ago, and Dh1.462 billion, up 16 per cent. Emaar Malls shares were unchanged at Dh3.25 a share on the Dubai Financial Market (DFM) on Sunday.
The Dubai Mall recorded 62 million visitors in the first six months, 11 per cent more than a year ago.
Emaar is currently expanding its Downtown Dubai development, which includes The Opera District alongside The Dubai Mall. It is also developing Arabian Ranches II, an extension on the existing Arabian Ranches estate.
Emaar shares closed down 0.38 per cent to Dh7.87 a share on the DFM on Sunday.
Source: Staff Report, gulfnews.com