Led by project deliveries in the UAE and international markets and the robust performance of its hospitality and leisure and shopping malls and retail businesses, Emaar Properties PJSC recorded a net profit of AED 421 million in the Q1 of 2011 and revenue of AED 1.983 billion.
Q1 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 center 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 Q1 and Q4 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.
Emaar's business subsidiaries contributed to the company's revenue stream with the shopping malls and retail business demonstrating strong growth trends. The Dubai Mall, the flagship development of Emaar Malls Group, reported first quarter 2011 footfall of 13.5 million visitors the highest quarterly performance since its opening in November 2008. Emaar Hospitality Group, the hospitality and leisure subsidiary, also recorded positive growth with its flagship Address Hotels + Resorts recording an average occupancy of 87% in the first quarter.
Mr Mohamed Alabbar chairman of Emaar Properties said that the Q1 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 that 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.
