Emaar Properties posts net operating profit of $230m for H1

Dubai-based real estate developer Emaar Properties recorded a net operating profit of USD 230 million (843 million dirhams) in the first six months of 2011, it was announced on Tuesday.

The global developer of iconic projects said its net operating profit for the second quarter (April-June) of 2011 was USD 115 million (422 million dirhams), similar to its net operating profit of USD 115 million (421 million dirhams) for the first quarter (January-March) of 2011. Revenue for the second quarter of 2011 was USD 553 million (2.032 billion dirhams), marginally higher than Emaar's first quarter 2011 revenue of USD 540 million. Emaar Properties Chairman Mohamed Alabbar said the financial performance of the company in the first six months of the year was marked by continued deliveries of homes and offices in Downtown Dubai and sustained growth of the company's hospitality and leisure and shopping mall and retail businesses. The second quarter results were supported by the continued delivery of residential units in Burj Khalifa, the world's tallest tower, and in its premium commercial project -- Boulevard Plaza -- located at Downtown Dubai. The company also commenced the handover of villas at the coastal development of Umm Al Quwain Marina during the quarter. The company handed over approximately 244 units during the quarter, as compared to 270 units and 612 units during the first quarter of 2011 and second quarter of 2010, respectively. However, due to continued superior performance of the hospitality and mall businesses and higher margins recorded on deliveries during 2011, gross margins during the first half of 2011 increased significantly vis-a-vis the same period in 2010. Emaar's business subsidiaries contributed significantly to the company's revenue stream, with the shopping malls and retail business continuing to exhibit a strong growth trend, as seen during the first quarter of the year. The Dubai Mall, the flagship development of the Emaar Malls Group, reported a first half 2011 footfall of 26.2 million visitors, as compared to 23.7 million visitors in the first half of 2010. Emaar Hospitality Group, the hospitality
and leisure subsidiary, also recorded strong performance, with its flagship Address Hotels + Resorts recording an average occupancy of 85% in the first half of 2011. During the second quarter, the revenue from rental and hospitality income was similar to the first quarter of the year and was 24% higher in comparison to the second quarter of 2010. The revenue from these business segments accounted for 41% of total revenue. "Emaar is now embarking on a new phase of growth with a
core management team in place to roll out a five-year corporate strategic action plan for driving long-term value creation," Alabbar said. "Having redefined the property landscape of Dubai through our fully established master-planned communities, Emaar's current focus is on identifying and strengthening our operations by taking into account the current social, economic and political changes across all our key markets. "Our approach is underlined by two goals: adding value to our stakeholders and serving as a catalyst for positive change across the economies we serve by creating new jobs for youth and supporting the economic diversification goals of governments," he said.