Dubai developer Emaar Properties has registered a net profit of Dh1.384 billion ($377 million) in the first quarter, up 15 per cent over Dh1.205 billion ($328 million) for the same period last year.
The builder of the world's tallest tower Burj Khalifa, Emaar said its total revenue for the period surged 15 per cent to Dh4.072 billion ($1.109 billion) from Dh3.529 billion ($961 million).
Recurring revenues from the malls, hospitality, entertainment and leisure businesses of Emaar stood at Dh1.592 billion ($433 million) in the first three months contributing 39 per cent of the total group revenue.
Emaar’s international operations recorded Q1 2017 revenue of Dh806 million ($219 million), up 62 per cent over revenue of Dh499 million ($136 million) last year, accounting for 20 per cent of the total Group revenue, said the developer in a statement.
On the performance, Chairman Mohamed Alabbar said the positive results achieved by Emaar across its operations underlines the focus of the company on continued value creation for its stakeholders.
“Along with our core business of creating premium real estate in Dubai and other international markets, our malls, hospitality and leisure businesses have also recorded growth. This is driven by our new customer-oriented digital strategy that helps optimise our resource use and enhance efficiency,” remarked Alabbar.
"We have seen an increase in property sales in Dubai, and we are on track with our construction milestones," he added.
Emaar recorded robust property sales of Dh6.049 billion ($1.647 billion) during the first three months in Dubai. This is 44 per cent higher than the value of property sales in Dubai during the same period last year which stood at Dh4.194 billion ($1.142 billion).
The group now has a backlog of Dh46.245 billion ($12.591 billion) to be recognised as revenue in the next few years.
The property business in Dubai was highlighted by new residential launches in Downtown Dubai, Dubai Marina and joint venture projects under Dubai Hills Estate, Dubai Creek Harbour and Emaar South.
Emaar accomplished a key milestone with the completion of the pile foundations for the new global icon The Tower, designed by Santiago Calatrava, in Dubai Creek Harbour.
Emaar has also achieved significant construction progress on the projects in Dubai Hills Estate, which now has green avenues, lakes, waterbodies and roads.
Impressed with the results, shareholders at the Annual General Meeting, have approved distribution of cash dividends worth Dh1.074 billion ($292 million), equivalent to 15 per cent of the share capital