Dubai’s Emaar Properties posts 45% slump in net profit for Q1-Q3 2020

Dubai developer Emaar Properties recorded Dhs2.43bn in net profit for the first nine months of 2020, slumping 45 per cent from Dhs4.44bn recorded during a year-earlier period.

Meanwhile, the developer’s revenue figures for Q1-Q3 2020 totaled Dhs13.37bn, down 24.1 per cent from Dhs17.63bn in the same period last year.

Emaar’s international operations delivered property sales worth Dhs3.43bn in the first nine months of 2020, a growth of 9 per cent compared to the same period in 2019. UAE property sales, amounting to Dhs4.35bn also recorded a month-on-month increase.

“Our performance in the third quarter demonstrates our continued resilience during these challenging conditions,” noted Mohamed Alabbar, founder of Emaar. “Covid-19 has hugely impacted businesses all over the world, but the plans and strategies that we adopted during the early stages of the pandemic, which included a restructuring of our businesses into leaner operations, showed our great agility in dealing with the crisis.”

“Looking to the future, I am cautiously optimistic about the remainder of the year and I am confident that things will be in better shape across most sectors by summer 2021. Meanwhile, we continue to maintain our focus on meeting and exceeding our customer expectations, delivering long-term, sustainable results across our business units, and strengthening our organisation and services for the future ahead.”

Emaar Development
In the first ninth months of 2020, Emaar Development, Emaar’s build-to-sale real estate business in the UAE, reported revenue of Dhs7.13bn with a net profit of Dhs1.36bn.

As of September 2020, Emaar’s delivery track record includes more than 45,000 residential units in Dubai. Including other international markets, Emaar has delivered over 68,500 residential units.

Over 28,000 residences are currently being developed in the UAE, alongside 13,000 units across international markets.

Emaar has a current sales backlog totaling Dhs40.75bn, of which Dhs27.28bn is in the UAE, to be recognised as revenue in the coming years.

Emaar Malls and other businesses
Emaar Malls reported revenues of Dhs2.493bn for the first nine months of 2020, a decrease of nearly 27 per cent compared to Dhs3.412bn it reported for the corresponding period last year.

It also reported a net profit of Dhs586m for January-September 2020, which was down over 66 per cent compared to the Dhs1.732bn recorded in the first nine months of 2019.

Read: Emaar Malls reports 66% decrease in net profit for January-September 2020

E-commerce platform Namshi, fully acquired by Emaar in 2019, recorded overall revenue of Dhs933m in first nine months of 2020. Meanwhile, Emaar’s hospitality and leisure, entertainment and commercial leasing business contributed Dhs1.114bn to the group’s total revenue.

Emaar International
Emaar’s international property development recorded revenue of Dhs2.634bn for the first nine months of the year.

International development business contributes 20 per cent to Emaar’s total revenue. The results were underpinned by operations in Egypt and Pakistan.