Emaar Properties records 2011 Q1

Emaar Properties PJSC, developer of the world's tallest tower Burj Khalifa, Tuesday reported net operating profit of Dh843 million ($230 million) in the first six months of 2011. The net operating profit for the second quarter (April to June) 2011 was Dh422 million ($115 million), similar to the net operating profit for first quarter (January to March) 2011 of Dh421 million ($115 million). Revenue for the second quarter of 2011 was Dh2.032 billion ($553 million), marginally higher than first quarter 2011 revenue of Dh1.983 billion ($540 million). Second quarter results were supported by the continued delivery of residential units in Burj Khalifa and in its premium commercial project - Boulevard Plaza located at Downtown Dubai. Article continues below The Company also commenced 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 malls businesses and higher margins recorded on the deliveries during 2011, the gross margins during the first half of 2011 increased significantly as compared to 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 with the strong growth trends as seen during the first quarter of the year. The Dubai Mall, the flagship development of Emaar Malls Group, reported 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 and Resorts recording an average occupancy of 85 per cent 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 per cent higher as compared to the second quarter of 2010. The revenue from these business segments accounted for 41 per cent of the total revenue.