26,000 homes in Emaar Development pipeline: $680m profits to Q3
Emaar Development PJSC, the UAE build-to-sell property development business majority-owned by Emaar Properties PJSC, recorded a growth in net profit of 19% during the first nine months (January to September) of 2018 to AED2.498 billion ($680 million), compared to the net profit of AED2.106 billion ($573 million) during the same period in 2017. Total revenue for the first nine months is AED10.033 billion ($2.732 billion), an increase of 54% over the revenue of AED6.508 billion ($1.772 billion) during the corresponding period last year.
Highlighting the strong investor interest for Emaar’s residential launches, the company reported total sales worth AED10.030 billion ($2.731 billion) during the first nine months of 2018. Emaar Development now has a total sales backlog of AED38.53 billion ($10.49 billion), which will be recognized revenue in the next three to four years.
In the third quarter of 2018 (July to September), Emaar Development reported a net profit of AED682 million ($186 million) and revenue of AED3.043 billion ($828 million), with a robust portfolio of projects nearing revenue recognition milestones.
At its General Meeting, held in October, Emaar Development announced the distribution of AED1.04 billion ($283.15 million), representing 26% of the share capital being 26 fils per share, as special cash dividend to the company’s shareholders.
During the first nine months of 2018, Emaar Development marked the sale of over 4,150 residential units in Dubai, which recorded positive investor response, including from international buyers. Emaar Development now has a pipeline of eight residential destinations in Dubai that offer over 26,500 homes currently under development. To date, the company has handed over 35,100 residences in Dubai, with significant deliveries due in coming quarters.
Mohamed Alabbar, Chairman of Emaar Development and Emaar Properties, said: “The strong performance of Emaar Development underlines the strength of Dubai’s property sector, driven by the robust economic fundamentals of the nation. Through our lifestyle destinations, we are offering world-class residential choices that stand out for their design and build quality. These developments also serve as dynamic hubs, with full-fledged amenities including retail and hospitality, which energize the economy and create new jobs and business opportunities. Our successful strategy to unlock the true potential of Emaar’s property development business has been aimed at delivering long-term value to our shareholders, and we will continue to focus on our core competency.”
New launches in iconic destinations
Emaar Development marked the launch of several exceptional residential destinations in Dubai this year. These include: The Grand, an exclusive collection of ultra-luxury apartments, penthouses and podium-level townhouses, in Dubai Creek Harbour; Socio and Collective, innovative concepts for co-living spaces, and Golf Place in Dubai Hills Estate; Beach Vista, Sunrise Bay and Marina Vista in Emaar Beachfront; and Grande in Downtown Dubai.
Robust delivery schedule
Emaar Development is set to welcome the first residents next year in Dubai Creek Harbour, ‘The World of Tomorrow’, a premier residential and leisure district of the six square kilometer mega-development. Emaar is also progressing as per schedule on the delivery of homes in Dubai Hills Estate, Emaar South and Downtown Dubai.
The Creek Marina in Dubai Creek Harbour will open shortly with a dazzling selection of shopping, dining, leisure, and a world-class yacht club. Emaar has also unveiled the Creek Beach District in Dubai Creek Harbour, which will offer residents direct access to a private beach, a vibrant boardwalk, infinity pool, sandbar mounds, and more. Adding value to residents, the Dubai Hills Golf Club in Dubai Hills Estate will also open this year.
Emaar Development is supporting investors with innovative home financing. Through its partnership with Dubai Islamic Bank, investors have the potential to earn greater than 10% return on investment. Among several benefits, customers can benefit from extended 25-year financing, with zero percent financing cost for the first five years.
Emaar’s projects are now among the most sought-after by high net worth individuals with the global investors covering over 200 nationalities with strong interest from international investors lead by Chinese. This has established Emaar as the world’s largest property company outside China, with a brand value of over $2.7 billion.