Dubai: Emaar Properties' annual net operating profits for 2009 reached Dh2.324 billion ($633 million), as compared to the restated net operating profits of Dh4.236 billion ($1.153 billion) in 2008, the company announced on Thursday.

Annual revenue for 2009 was Dh8.413 billion ($2.29 billion) as compared to the restated revenue of Dh10.717 billion ($2.918 billion) in 2008. The restatement of the 2008 profit and revenue relates to change in accounting method from percentage completion to completed contract method of revenue recognition in accordance with International Financial Reporting standards (IFRS).

Fourth-quarter 2009 net operating profits stood at Dh923 million ($251 million), 41 per cent higher than the third-quarter net operating profit of Dh655 million ($178 million) and 149 per cent higher than the fourth quarter 2008 net operating profit of Dh370 million ($101 million). Revenues for the last three months of 2009 reached Dh2.984 billion ($812 million), 53 per cent higher than third-quarter 2009 revenue of Dh1.948 billion (nearly $530 million) and 94 per cent higher than the fourth quarter 2008 revenue of Dh1.535 billion ($418 million).

Emaar said it has delivered approximately 3,100 units during 2009 as compared to 4,900 units in 2008. However, the revenues by Malls and Hospitality businesses increased significantly. The company implemented a number of customer oriented policies, which assisted in maintaining its Gross Profit Margins at 2008 levels. These policies also enabled customers to settle their obligations towards properties delivered, which is also positively reflected in the revenues of the Company.

In spite of opening two hotels during the year – The Address Dubai Mall and The Address Dubai Marina, the selling, general and administration expenses in 2009 were maintained at 2008 levels through implementation of appropriate cost control mechanisms.

Although, the profitability levels were maintained for the core businesses of Emaar, the net operating profit decreased due to provisions made by the Company’s associated companies in the Financial Sector, Amlak Finance and Dubai Bank towards their loans and advances portfolio. The Company also recorded lower fee income on property transfers due to discontinuance of such charges and lower net interest income due to utilization of cash resources to complete investment assets (Malls and Hospitality) during the year.

Emaar’s Hospitality and Mall subsidiaries were significant contributors to the company’s revenue stream, with the year witnessing the opening of two new hotels and the grand inauguration of The Dubai Mall, the world’s largest shopping centre, which attracted more than 37 million visitors in its first year of operation.

Emaar Healthcare Group, the company’s healthcare subsidiary, opened its first world-class medical centre in Dubai late last year.

Overseas, Emaar projects in India, Egypt and Saudi Arabia, all reached advanced stages of completion and will be ready for handover this year.

Mohammad Al Abbar, Chairman, Emaar Properties, said the company focused on the timely completion of existing projects across global markets through stronger resource optimization. "The crowning achievement in our track record of successful project management and delivery is the inauguration of Burj Khalifa. From delivering the world’s tallest building to the world’s largest shopping centre, and further strengthening our ability to build world-class communities such as Downtown Dubai, we have proved our commitment to delivery," explained Al Abbar.

"During an especially challenging period for economies across the globe, Emaar contributed to the socioeconomic growth and stability of Dubai by creating more than 12,500 new jobs through our subsidiaries. Domestic growth, catalysed by Burj Khalifa, will be the highlight of this year, as Emaar continues to focus on maximising long-term value for our shareholders," said Al Abbar.

This year, Emaar will also focus on middle income housing as a strategic growth area to meet the growing demand for homes in emerging markets. According to recent estimates, demand for residential property in India will be over 7.5 million units by 2013 of which 85 per cent is projected in the mid and affordable housing segment – a trend observed in Egypt, Pakistan and other emerging markets too.