Dubai’s Emaar Properties, builder of the world’s tallest tower, reported a seven per cent increase in first-quarter net profit on Sunday, extending a run of profits as it sold $672 million in property in its home market and mall revenue rose.
The developer, in which Dubai’s government owns a minority stake, made a net profit of Dhs1.03 billion ($280.4 million) in the three months to March 31, Emaar said in a statement.
A year earlier, its profit was Dhs957 million. Emaar has now reported rising profits in eight successive quarters.
The result exceeded a forecast by SICO Bahrain for first-quarter profit of Dhs856.8 million.
“The sustained growth in net profit and revenue is supported by the increase in recurring revenues from the group’s shopping malls, retail and hospitality businesses,” Emaar said.
Its quarterly revenue rose to Dhs3.01 billion from Dhs2.39 billion a year earlier.
The company sold 2.45 billion worth of property in Dubai in the quarter, and its property division’s quarterly revenue was Dhs1.49 billion. It did not provide comparative figures for the year-ago quarter.
Emaar’s hospitality and leisure business generated Dhs495 million in revenue in the first quarter, which it described as similar to a year ago.
Emaar Malls, in which Emaar floated a 15.4 per cent stake in September, reported a 32 per cent rise in first-quarter profit last week, with revenue up 21 per cent.
Emaar’s international operations provided 11 per cent, or Dhs346 million, of the group’s quarterly revenue.