Emaar Properties, the Dubai-based global property developer, recorded a net profit of Dh1.026 billion (US$279 million) during the first three months of 2015, seven per cent higher than the net profit of Dh 957 million (US$261 million) in the first-quarter of 2014.
The profits were calculated as per revised accounting policy for revenue recognition (the profitability increase in Q1 2015 would have been 14 percent if the Malls listing at the end of 2014 was not considered).
Starting from Q1 2015, Emaar has opted for early adoption of the International Financial Reporting Standard 15 (IFRS 15) and recognises revenue based on percentage construction completion instead of on completion and handover.
Revenue for Q1 2015 reached Dh3.013 billion (US$820 million), which is 25 percent higher than Q4 2014 revenue of Dh2.409 billion (US$656 million) and 26 per cent higher than Q1 2014 revenue of Dh2.392 billion (US$ 651 million).
The sustained growth in net profit and revenue is supported by the increase in recurring revenues from the group's shopping malls, retail and hospitality businesses, which together stood at Dh1.523 billion (US$415 million) in Q1 2015, 13 percent higher than Q1 2014 figures of Dh1.346 billion (US$366 million). Malls, retail and hospitality revenue now account for 51 percent of the total group revenue. The group's international operations also contributed 11 percent of the total revenue amounting to Dh346 million (US$94 million).
Underlining its commitment to creating sustained value for its shareholders, Emaar recently announced the distribution of a cash dividend of 15 percent of the share capital, equivalent to around Dh1.074 billion (US$292 million).
In international markets, Emaar made strong progress in the development of integrated master-planned communities in the Kingdom of Saudi Arabia, Egypt, Turkey, Pakistan and Lebanon, among others. Several residential units are being handed over in these markets.
Mohamed Alabbar, Chairman of Emaar Properties, said the positive growth in profits reflects the success of the company's focus on world-class project management.
"We are committed to creating long-term value for our stakeholders through strategic business expansion in Dubai and other key international markets, where we are expanding our hospitality and malls operations too. In Dubai, in addition to committed delivery schedule, we are launching new real estate assets that meet demand from buy-to-live customers," he added.