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Emaar Properties recorded a 7 per cent year-on-year gain in net profits by totalling Dh1.02 billion in the first three months, helped by gains at both its Dubai and overseas exposures, the company said in a statement on Sunday. On a quarter-on-quarter basis, there was actually a 2 per cent drop during the first quarter.
The gain would have been 14 per cent if one were to include the proceeds from the malls — which got listed late last year. (The developer also made a change in its accounting processes for revenue recognition (IFRS 15) from this year, which is now based on percentage construction completion instead of on completion and handover.) Revenues were up 26 per cent during the period, at Dh3.013 billion compared with last year’s Dh2.39 billion. (On a sequential basis, the revenue gain was 25 per cent over the fourth quarter of 2014’s Dh2.4 billion.) Apart from incremental launches at its wholly owned developments in Dubai, Emaar is looking to build up a sizeable presence at The Lagoons, with Dubai Creek Harbour (a joint venture with Dubai Holding), and Dubai Hills Estate, in alliance with Meraas Holding.
The core property business fetched revenues of Dh1.49 billion during the first quarter of 2015. Sales of Dh2.46 billion were led by the launch of the Azalea villa community at the Arabian Ranches extension, Fairways and Acacia at Park Heights in Dubai Hills Estate and Dubai Creek Residences South Tower II & III in Dubai Creek Harbour at The Lagoons.
In the global markets, further progress was made at its masterplanned communities in Saudi Arabia, Egypt, Turkey, Pakistan and Lebanon.
Emaar Malls, the retail subsidiary, had revenues of Dh735 million, 21 per cent higher than in the first quarter of 2014.
The hospitality and leisure business supported with revenues of Dh495 million, in line with what it did in the same period last year. The company has more than 690,000 square metres of recurring revenue generating assets apart from 13 hotels featuring 1,900 rooms.
Emaar’s shares on DFM lost 30 fils to close at Dh7.94 on Sunday.
Source: Staff Report, gulfnews.com