Emaar Properties records first quarter 2011 net profit of Dhs421m
Tuesday May 17 2011
First quarter results were supported by the continued delivery of residential units in Burj Khalifa in Dubai and the handover of commercial offices in The Eighth Gate, Syria, an integrated project billed to become the financial nerve centre of the country. The company also commenced delivery of one of its premium commercial projects – Boulevard Plaza within Downtown Dubai during this quarter.
The company handed over approximately 270 units during the quarter as compared to more than 1,300 and 1,000 units during the first and fourth quarters of 2010 respectively. However, due to higher margins recorded on the deliveries and the hospitality and malls businesses, the gross margins increased significantly as compared to first and fourth quarters of 2010. This resulted in the gross profit being at similar levels to the compared quarters of last year.
Mr. Mohamed Alabbar, Chairman, Emaar Properties, said the first quarter performance underlines the company`s strategy to focus on project delivery and strengthening recurring revenue streams from its shopping mall and hospitality businesses.
`Emaar welcomed 2011 with the spectacular Burj Khalifa New Year`s Eve gala attended by over 600,000 people, establishing Downtown Dubai as a global benchmark in lifestyle destination development. Our flagship project is a perfect complement to Dubai`s growth outlook centered on the traditional sectors of retail, hospitality and tourism, led by the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister and the Ruler of Dubai` he said.
He added: `Emaar will continue to explore growth opportunities in key emerging markets, where our emphasis will be to create dynamic socio-economic growth engines like Downtown Dubai that create jobs, support ancillary industries and meet lifestyle aspirations.`
In addition to the handover of homes in Burj Khalifa, in January 2011 Emaar opened one of the world`s highest restaurants, Atmosphere, located on Level 122 of the world`s tallest building. The restaurant further builds on the Lifestyle Dining division of Emaar Hospitality Group.