Emaar Properties reports 5.6% increase in Q3 profit on revenue boost

Dubai-based Emaar Properties reported a 5.6% increase in its third quarter profit, reaching Dh4.6 billion ($1.25 billion) for the three months ending September, as revenue from new project launches and a strong backlog helped offset uncertainty caused by the Iran war. Annual revenue rose by nearly 3% to Dh13.6 billion, while nine-month profits surged 16% to Dh13.28 billion, with revenue increasing 13% to Dh37.5 billion.

Property sales for the January-September period totaled Dh34.7 billion, marking a 6% year-on-year rise, and the company had launched 14 projects across its master-planned communities. Revenue backlog from property sales increased by 6% year-over-year to Dh158.8 billion. Emaar attributed its performance to effective project execution and the recognition of revenue from its existing backlog, citing Dubai's supportive economic environment despite global uncertainty.

While the emirate experienced a drop in residential property transactions due to buyer caution, Emaar Development, a subsidiary, announced plans to make a voluntary cash offer to acquire up to 100% of its shares at Dh15 per share. The developer's other operations, including shopping malls and retail leasing, saw revenue growth of 10% to Dh5.2 billion, with an average occupancy rate of 98% across its portfolio.

Emaar's hospitality and leisure portfolio generated Dh2.4 billion in revenue, with a hotel occupancy rate of 63%, significantly lower than the 80% seen in the previous year. The company's board approved a one-time special dividend of Dh4.4 billion, equivalent to Dh0.5 per share, alongside its regular annual dividend.