DUBAI
A strong off-plan launch pipeline boosted Emaar Development’s net profits by 30 per cent to Dh2.74 billion against Dh2.11 billion a year ago. In fact, the launches during 2017 have a combined project sales value of Dh20.08 billion (including sold and unsold units), which bodes well for the developer’s medium-term prospects.
The company had a sales backlog of Dh41 billion as of December 31 last, with more than 24,000 homes to be delivered in the next four years.
In fact, the off-plan pace has continued into the current year, with initial sales at a new site — the Beachfront — generating Dh1 billion. It will take up 10 million square feet for a Miami-style destination and offering future residents access to a private beach Revenues for 2017 weighed in with Dh8.86 billion, a gain of 28 per cent on 2016’s Dh6.89 billion. “We will continue to focus on building iconic developments that catalyse the economy,” Mohammad Alabbar, Chairman of Emaar Development and Emaar Properties, said in a statement on Wednesday. “With the IPO and listing of Emaar Development, we are creating long-term value for our shareholders.”
On the cost side too, there was a 26 per cent increase, to total Dh5.1 billion from Dh4.03 billion. But there was help from “other income” with Dh197 million, up 16 per cent on 2016’s Dh170 million.
The company has more than 10 master-developments in its portfolio, including joint ventures such as Dubai Hills Estate, Emaar South and Zabeel Square, and a joint development project — Dubai Creek Harbour.
Emaar Development had its listing on the Dubai Financial Market (DFM) in the fourth quarter of 2017. It has a significant land bank of over 167 million square foot of gross floor area (GFA) for build-to-sell (BTS) assets in UAE.
The company reported sales of Dh18.03 billion last year, a growth of 25 per cent compared to the Dh14.41 billion in 2016. In total, 9,531 residential units were launched. (Emaar has handed over more than 34,700 residential units since 2002.)
The strategy “for 2018 and beyond is to create sustained and secure returns from its developments”, the company said in a statement. In addition, the focus will be on “leveraging its significant land bank and partnership with government-related entities to create sustained value for shareholders”.
Market sources say that for the near-term, Emaar will continue to push out more of tower launches at the Beachfront. Prices are said to be in the Dh2,000 a square foot range, and demand to date shows there is selective interest among high net worth buyers for premium Dubai realty offerings.
