Dubai property group Emaar sees FY profits jump

on Feb 16, 2015
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Emaar Properties PJSC saw its profits soar last year, benefitting from higher revenue from hotels and malls, as well as robust sales of property. Dubai’s residential sector, however, is expected to remain subdued over the next 12 months, potentially impacting growth at the Middle East developer.

Dubai’s biggest property developer said yesterday in a statement that its net operating profits had jumped 30 percent year-on-year to 3.35 billion dirhams (£592 million) in 2014. Revenue from malls and hotels rose 12 percent to 5.37 billion dirhams, accounting for 54 percent of the company’s total revenue. Emaar’s property business recorded total revenues of 4.53 billion dirhams last year. The company said that as of December 2014, it had handed over 38,600 residential units including more than 22,000 apartments and over 16,600 villas in Dubai and other international markets.

“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,” Mohamed Alabbar, chair of Emaar Properties, said in the statement.
Despite the upbeat results, Emaar faces a slowing property market at home this year. Real estate broker JLL last month saidthat residential property values in Dubai were expected to decline 10 percent on average this year, while the hospitality market was “also positioned close to the peak of its cycle and is facing increased challenges as we move into 2015”. The Wall Street Journal quoted analysts as forecasting slower growth in Emaar’s malls and hospitality business as a result.
Taher Safieddine, an analyst at Shuaa Capital PSC in Dubai, however, told Bloomberg that Emaar would be “helped in 2015 and 2016 by the delivery of most properties sold,” adding that the Dubai property group had sold about 3,300 homes last year.

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