Emaar Properties (EMAAR.DFM) announced its financial results for Q1 2014 where net income increased by 55% YoY to AED863mn (+14% QoQ). These earnings came in beating consensus earnings of AED739mn by 17%.

Mubasher Trade and Research stated that UAE's strong real estate and tourism sectors affected positively on Emaar’s performance. Revenues increased 7% YoY to AED2.26bn in Q1 2014, missing consensus revenues of AED2.62bn by 14%. Although revenues missed consensus, net income came above estimates on achieving higher gross margin of 64% in Q1 2014 versus 53% in Q1 2013 as the share of the higher margin recurring revenues of malls and hotels segments increased to 60% in Q1 2014 compared to 55% in Q1 2013.

Additionally, Emaar registered other income of AED162mn in Q1 2014 versus other losses of AED19mn in Q1 2013. Emaar's shopping malls and retail business registered 15% YoY higher revenues to AED863mn in Q1 2014 (38% of total revenues vs. 36% in Q1 2013) on strong performance of Dubai Mall which welcomed nearly 21mn visitors in Q1 2014. Hospitality segment posted strong revenues as well by registering AED483mn (+21 YoY) in Q1 2014 as the flagship address hotels and resorts reported average occupancy rate of 92% in addition to launching serviced apartments under the Address Hotels added to Vida Hotels and Resorts in Dubai.

“We see continuous strong performance over the coming years as the company registered new sales of AED5.9bn in Q1 2014 compared to AED3bn in Q1 2013 (+94% YoY), supported by successful several new launches in Dubai accompanied by strong performance of international operations in Egypt and Pakistan”, Mubasher Trade stated.