Emaar profit rises 45% to Dhs1.2 bn, led by retail

Property giant Emaar reports 2012 profit rise citing Dubai’s strengthening economy.

Emaar Properties reported today a net operating profit of Dhs1.22 billion for the first six months of 2012, 45 per cent more than the half year 2011 net operating profit of Dhs843 million.

The revenue for the first six months of 2012 was Dhs 3.921 billion, similar to the revenue for the same period in 2011.

The company’s net operating profit for the second quarter of 2012 was AED 614 million, an increase of 45 per cent over the second quarter 2011 net operating profit of AED 422 million.

Revenue for the second quarter of 2012 was Dhs2.1 billion, 15 per cent higher than the revenue of Dhs1.821 billion recorded in the first three months of the year.

“The real estate market in Dubai is turning around, led by the robust performance of key growth sectors including aviation, retail, hospitality, tourism and foreign trade. The city’s appeal to high net worth individuals as the ideal destination for a home is also gaining strength. Emaar’s financial results for the first half of the year reflects the growing strength of Dubai’s economy,” said Mohamed Alabbar, chairman, Emaar Properties.

“To add long-term value to our stakeholders, we are planning on bigger growth in our home market through projects such as the Dubai Modern Art Museum & Opera House District, and the expansion of The Dubai Mall, in addition to new project launches.”

Emaar’s rental and retail business primarily comprising of Emaar Malls Group, contributed approximately Dhs 1.3 billion to first half 2012 revenue, which is an increase of 23 per cent as compared to same period in 2011.

The shopping mall operations were underpinned by the strong performance of The Dubai Mall, the company’s flagship development, which hosted approximately 31 million visitors in the first six months of the year.

Emaar Hospitality Group, the hospitality & leisure business subsidiary of Emaar Properties, recorded revenue of Dhs720 million during the first six months of 2012 with an average occupancy of 89 per cent at its flagship Address Hotels + Resorts during the period.

The hospitality & leisure and shopping malls & retail businesses contributed 51 per cent to the first half 2012 revenue of Emaar.

Internationally, Emaar handed over units in Turkey, Egypt, Kingdom ofSaudi Arabia and Lebanon. The international operations of Emaar accounted for approximately 11 per cent of the half year 2012 revenues.