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Dubai: With retail and hospitality making up 46 per cent of Emaar Properties 2013 revenues, it will set up another debate whether the developer should spin these off into a separate entity altogether. Net profit for the year totalled Dh2.56 billion against Dh2.11 billion a year earlier, on revenues of Dh10.32 billion (Dh8.24 billion in 2012), Emaar said in a statement on Monday.
There were sequential gains as well, with revenues in the fourth quarter at Dh2.76 billion and 18 per cent higher than the Dh2.34 billion in the third quarter. “The company’s recurring income through rental/lease, malls and hospitality segments contribute an increasing share of revenue as the company benefits from growth in economic conditions, tourism and higher hotel occupancy,” said Krishna Murthy, general manager at Dubai International Securities.
“Also, as a result of overall improvement in the real estate market, the company is in a position to realize a better selling price and resulting in healthier gross margins.”
The company’s core property operations generated Dh5.528 billion in revenues, while there was also upbeat numbers from non-UAE operations, which now make up 11 per cent (Dh1.16 billion) of overall turnover. The value of unit sales in Dubai is Dh12 billion, nearly three times compared to 2012 sales.
Outside of the UAE, there were launches of the Downtown Erbil in Kurdistan of Iraq, and a second high-rise was launched in Saudi Arabia through Abraj Al Hilal 2 in Jeddah Gate. There were multiple launches by Emaar Misr in Egypt and Emaar Turkey brought out The Address Residences Emaar Square, Istanbul.
Retail (inclusive of the malls) and hospitality grossed Dh4.8 billion last year, up by 17 per cent from 2012’s Dh4.09 billion. The Dubai Mall’s 1,200 plus outlets recorded a 26 per cent rise in sales during 2013 over the previous year. Its 12 hotels brought in revenues of Dh1.515 billion, up 10 per cent.
Emaar shares closed at Dh8.55 on Monday from the previous day’s Dh8.45 a share. The company earlier this month converted the outstanding amount of its $500 million convertible bond issue. “The debt convertibility to additional equity shares may save finance cost for the company and improve the share’s liquidity,” Murthy said.
Source: Manoj Nair, Associate Editor, gulfnews.com