Moody’s Investor Service this year upgraded Emaar Properties to BAA3 with a “stable” outlook moving into the future.
“The upgraded ratings underline the strong financial fundamentals of the company and our focus on sustained value creation for our stakeholders,” Mohamed Alabbar, chairman of Emaar Properties, said. “This year, Emaar and Emaar Malls together have distributed over $646 million in dividends, defining the significant value that we bring to our shareholders.”
In addition to the dividends, Emaar has a development pipeline of close to 13,000 residential units due to its sales backlog of roughly $7.7 billion that will be recognized in the next four to five years in the United Arab Emirates (UAE).
The company believes its new development, the Tower at Dubai Creek Harbour, will continue to grow Dubai’s economic sectors. Additionally, its Dubai Mall expansion project will drive recurring revenues. Emaar Hospitality Group has a vast portfolio of properties, including 35 new hotels and serviced residences in the UAE.
“We believe that Emaar's market leadership position and balance sheet strength - in combination with stable recurring revenues and a sizeable property sales backlog - will support the company's credit profile during the currently challenging market conditions and as it enters a phase of elevated capex ahead of the Dubai World Expo 2020,” Moody’s report said.
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