Emaar Properties PJSC, the global property developer of iconic projects, reported a net operating profit of Dhs1.249bn ($340m) in the first nine months (January to September) of 2011. Revenue for the first nine months this year reached Dhs5.873bn ($1.599bn).
Third quarter (July to September) 2011 revenue stood at Dhs1.859bn ($506m), compared with the second quarter 2011 revenue of Dhs2.032bn ($553m).
Net operating profit for the third quarter of this year reached Dhs406m ($111m), similar to the second quarter 2011 net operating profit of Dhs422m ($115m).
The nine-month performance of Emaar was underlined by the sustained growth of its hospitality & leisure and shopping malls & retail subsidiaries, the continued demand for homes and commercial space within its established communities such as Downtown Dubai, and the hand-over of prime real estate assets in international markets, including Turkey, Jordan and Syria.
Residences in several master-planned developments of Emaar in other global markets including Saudi Arabia and Egypt – two of the biggest markets in terms of demand for ‘affordable luxury’ homes – will be handed over shortly, adding to the company’s revenue stream in the coming months.
Strong recurring revenue streams
The shopping malls business of Emaar recorded robust growth in revenue during the first nine months of 2011 with the total rental and related revenue for the period being approximately Dhs1.6bn ($436m).
The Dubai Mall, its flagship mall development, welcomed 39m visitors during the period – 13% higher than visitors in 2010 for the period. The mall is on course to crossing the 50m visitor mark this year.
Emaar’s hospitality business also contributed significantly to Group revenues with The Address Hotels + Resorts, its flagship hotel brand. In spite of the third quarter being a seasonally lower period for hospitality business, The Address Hotels + Resorts recorded an average occupancy rate of 80% during the first nine months of the year. Revenue from the hospitality & leisure business during the first nine months was Dhs844m ($230m).
Recurring revenues from the hospitality and shopping malls businesses of Emaar accounted for nearly 41% of total revenue in the first nine months of the year. More info