Dubai developer Emaar Properties reported a 5.6 per cent annual increase in its third quarter profit, with revenue backlog and sales from new project launches supporting earnings, despite Iran war-driven uncertainty.
Net profit attributable to owners of the company for three months to the end of September climbed to Dh4.6 billion ($1.25 billion), the company said in a filing on Thursday to Dubai Financial Market, where its shares are traded. Revenue rose nearly 3 per cent on annual basis to Dh13.6 billion.
Its nine-month profit surged 16 per cent to Dh13.28 billion as revenue increased 13 per cent to Dh37.5 billion.
Property sales for the January-September period reached Dh34.7 billion, with 14 projects launched across its master-planned communities. Revenue backlog from property sales during the period rose 6 per cent year-on-year to Dh158.8 billion.
“Performance during the period was driven by project execution across the group’s businesses and the recognition of revenue from its existing backlog, with Dubai’s economic fundamentals providing a supportive operating environment,” Emaar said.
“While global economic and geopolitical conditions remained uncertain, the UAE’s open and diversified economy continued to support confidence in Emaar’s key markets.”
The financial results come as Dubai continues to navigate the economic fallout from the Iran war, with sectors including property and tourism feeling an impact.
The volume and value of residential property transactions in the emirate fell in the third quarter as buyers became “more cautious” amid the regional uncertainty.
Dubai recorded home sales worth a total of Dh72.6 billion in the three months to the end of September, down 47 per cent compared with the same period last year, a report by property consultants Cavendish Maxwell said last month. The number of transactions dropped 38 per cent to 34,000.
Emaar Development
Emaar Properties said this week it intends to make a voluntary cash offer to acquire up to 100 per cent of the shares in its listed unit Emaar Development that it does not already own.
The developer is offering Dh15 per share to investors to take full control of its subsidiary, which specialises in the build-to-sell property development business. The proposed offer is subject to approval by Emaar Properties’ board.
Emaar Development on Thursday also reported a sharp rise in third-quarter profit to Dh3.5 billion, up nearly 8 per cent annually. Revenue for the period surged 14 per cent to Dh8.8 billion.
UAE property sales for the first nine months reached Dh26.2 billion and international development sales were Dh8.5 billion for the period.
Meanwhile, Emaar’s shopping malls and retail and commercial leasing operations recorded revenue of Dh5.2 billion in the first nine months of this year, up 10 per cent annually, the company said. It recorded an average occupancy rate of 98 per cent across its portfolio.
Revenue for Emaar’s hospitality, leisure and entertainment portfolio for the first nine months of the year reached Dh2.4 billion, with an average hotel occupancy of 63 per cent compared to 80 per cent for the same period last year, it added.
“The group will continue to align new launches and investment with market conditions while prioritising construction progress, timely handovers and the performance of its operating assets,” Emaar said.
“Capital allocation, cost discipline and delivery quality will remain central to its approach as it advances existing commitments and prepares its next phase of development.”
The company’s board also approved a one-time special dividend of Dh4.4 billion, equivalent to Dh0.5 per share, in addition to the company’s regular annual dividend.
