Record growth year for Emaar with net operating profits increasing 30% to AED 3.350 billion (US$ 912 million) in 2014
Dubai, UAE; February 15, 2015: Global property developer Emaar Properties PJSC announced a record AED 3.350 billion (US$ 912 million) net operating profit for full-year 2014, 30 per cent higher than FY 2013 net operating profit of AED 2.568 billion (US$ 699 million).
Underlining the robust performance of its real estate business as well as the strong recurring revenues from its shopping malls, retail and hospitality businesses, Emaar achieved FY 2014 revenues of AED 9.893 billion (US$ 2.693 billion).
Emaar’s shopping malls, retail and hospitality businesses contributed over 54 per cent of the total revenue. At AED 5.367 billion (US$ 1.461 billion), it is 12 per cent higher than the AED 4.8 billion (US$ 1.307 billion) generated in the previous year.
The company’s international operations also recorded robust growth with FY 2014 revenue at AED 1.899 billion (US$ 517 million), totaling 19 per cent of the total revenue. This marks a growth of 63 per cent compared to AED 1.167 billion (US$ 318 million) in FY 2013.
Emaar’s fourth-quarter (October to December) 2014 revenue is AED 2.854 billion (US$ 777 million), 44 per cent higher than the third-quarter (July to September) 2014 revenue of AED 1.976 billion (US$ 538 million). Net operating profit for Q4 2014 is AED 861 million (US$ 234 million), 14 per cent higher than the previous quarter at AED 758 million (US$ 206 million).
Emaar also made history in 2014, distributing a total dividend of AED 17.12 billion (US$ 4.66 billion), which was 250 per cent of the par value of shares, following the record-breaking IPO and successful listing of its shopping malls & retail business, Emaar Malls (DFM: EMAARMALLS), on the Dubai Financial Market (DFM).
Mohamed Alabbar, Chairman of Emaar Properties, said: “2014 was a robust year for Emaar as we recorded positive growth across each of our three core businesses – property, shopping malls and hospitality – as well as in our international markets. We created long-term value for our stakeholders through our record results, buoyed by the upbeat performance of Dubai’s growing economy.
“Our focus for the future is to develop smart communities that support the Dubai Plan 2021 announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, to establish Dubai as a pivotal hub in the global economy.”
Mr. Alabbar said that Dubai is now firmly positioned as the centre of international trade flow and a global hub for business, leisure, retail, hospitality and fashion. “With Dubai International clinching the honour as the world’s busiest airport for international passengers welcoming 70.4 million people and The Dubai Mall continuing to be the world’s most-visited retail destination recording around 80 million visitors in 2014, the city’s positive growth will continue to energise our operations across all business sectors in the coming years.”
He added: “Emaar’s 2015 strategy for sustained value creation is to focus on world-class project delivery in Dubai and our international markets through professional project management supported by the highest standards in customer service. We are committed to strengthening the economic impact of our projects led by innovative approaches that will build Dubai’s competitiveness as the world’s leading investment and lifestyle destination.”
Robust property sales
The property business of Emaar recorded total revenues of AED 4.526 billion (US$ 1.232 billion) in 2014. As of December 2014, Emaar handed over 38,600 residential units including over 22,000 apartments and over 16,600 villas in Dubai and other international markets. In Dubai alone, the company continues to dominate the property landscape having handed over 33,000 residential units to date, including over 20,500 apartments and around 12,500 villas. Emaar also handed over 2.5 million sq. ft. of commercial real estate across its global markets including more than 1.8 million sq. ft. in Dubai.
Underlining the strong partnerships it fosters to support Dubai’s growth, Emaar launched the waterfront Dubai Creek Residences in Dubai Creek Harbour at The Lagoons, developed jointly with Dubai Holding, and Mulberry Park Heights in Dubai Hills Estate, a joint venture with Meraas Holding.
In 2014, Emaar marked several milestone property launches including Boulevard Crescent, Boulevard Point, Vida Residence Downtown Dubai, Opera Grand in The Opera District, Boulevard Heights – all in Downtown Dubai; Aseel, La Avenida 2, Lila, Rasha, Yasmin and Samara in Arabian Ranches.
In international markets, Emaar handed over residences in key markets including Egypt, Saudi Arabia, Turkey, Lebanon and Pakistan, among others. New overseas project launches included The Address Residence Istanbul by Emaar Turkey; Emaar Square, a dedicated commercial precinct in Jeddah Gate, Kingdom of Saudi Arabia; and other residential developments with the Company’s master-planned communities in various markets.
The total sales value achieved in Dubai during FY 2014 was over AED 11.5 billion (US$ 3.13 billion).
With a portfolio of 12 hotels and resorts consisting of over 1,900 rooms, Emaar’s hospitality and leisure business recorded FY 2014 revenue of AED 1.681 billion (US$ 458 million), 17 per cent of the total revenue and 11 per cent higher than FY 2013 hospitality revenue of AED 1.515 billion (US$ 412 million).
Emaar Hospitality Group further defined its credentials as Dubai’s leading hotel operator with three market leading hotel brands – The Address Hotels + Resorts, Vida Hotels and Resorts and the recently launched Rove Hotels (developed jointly in partnership with Meraas Holding), a contemporary mid-market lifestyle hotel brand intended to provide value hospitality experience to the global traveler.
The flagship Address Hotels + Resorts, voted ‘Best Hotel Chain in the Middle East,’ at the Global Traveler Awards 2014, recorded an average occupancy of 85 per cent during 2014, higher than industry-average. It also strengthened its international footprint with its first full-fledged hotel and serviced residence project in Turkey - The Address Istanbul in the heart of Emaar Square, a mixed-use project by Emaar.
While Vida Hotels and Resorts has unveiled its second property, Manzil Downtown Dubai, Rove Hotels plans to roll out 10 properties across central locations in Dubai and the region by 2020.
With over 238 million sq metres of land bank in Dubai and international markets, Emaar has strong financial fundamentals. Emaar has total assets of over AED 74 billion (US$ 20 billion), over 690,000 sq m of recurring revenue generating assets and 12 hotels with over 1,900 rooms.
Emaar has also added to the civic pride of Dubai clinching two Guinness World Records in 2014 for At The Top, Burj Khalifa SKY as the world’s highest observation deck, and for the ‘Largest LED Illuminated Façade’ on Burj Khalifa, which marked the spectacular New Year’s Eve celebrations attended by millions and reaching over 2.5 billion people through live TV feeds.