Emaar Development full-year 2017 net income climbs 30%

The company says its sales backlog reached Dh41bn at the end of last year

United Arab Emirates, February 14, 2018

Emaar Development, the Dubai-listed real estate arm of UAE's biggest developer Emaar Properties, recorded a 30 per cent jump in 2017 full-year net income as it continued to launch and deliver projects.

The company reported net profit of Dh2.74 billion for the 12-month period to the end of December, up from Dh2.11bn reported a year earlier, the company said in a statement to the Dubai Financial Market, where its shares are traded. Total revenue for the last financial year came in at Dh8.86bn, a year-on-year jump of 28 per cent, from Dh6.89bn at the end of 2016, it said without giving details of its quarterly financial performance.

The company floated its shares on DFM in the fourth quarter of 2017 in the largest listing since 2014 and overall the third-largest offering on DFM. It said total sales reached Dh18.03bn, a rise of 25 per cent compared to Dh14.41bn recorded at the end of 2016. The growth was driven by the launch of 9,531 residential units in about 21 new developments in various master-planned developments.

“The positive performance of Emaar Development highlights the potential of the company to shape the cities of the future in the UAE,” Mohamed Alabbar, chairman of Emaar Development and Emaar Properties, said. “With the IPO and listing, we are creating long-term value for our shareholders. We will continue to focus on building iconic developments that catalyse the economy.”

The firm said sales backlog reached Dh41bn as of December 31, underpinning the firm’s “robust fundamentals” with more than 24,000 residential units to be delivered over the next four years. The company has handed over more than 34,700 residential units since 2002, it noted.

Creek Gate, Harbour Gate, Creek Rise, Address Harbour Point, Island Park and Cove in Dubai Creek Harbour, Park Ridge and Club Villas in Dubai Hills Estate and Vida Dubai Mall in Downtown Dubai are among the new projects launched last year. The projects with a total sales value of Dh20.08bn, including sold and unsold units, recorded strong investor response, the company said.