Emaar Properties posts Dhs4.9bn in H1 2023 profit

Emaar Properties has posted a 15 per cent year-on-year (YoY) growth in half-year profit to Dhs4.9bn ($1.3bn), driven by the growth in tourism, retail sales, and sustained real estate demand in Dubai.

Dubai’s property market has boomed after a swift post-pandemic economic rebound, relaxed residency and social rules and an influx of migrants.

The builder of Burj Khalifa, the world’s tallest building, said its group property sales jumped 14 per cent YoY to Dhs20.2bn while its revenue backlog from property sales reached Dhs62.8bn as of June 30, 2023. “This backlog represents future revenue from property sales to be recognised over the next few years,” Emaar said in a bourse filing.

The Dubai-listed developer’s half-year revenues reached Dhs12.3bn. Emaar said its recurring revenue in the six months to June 30 rose by 11 per cent compared to the corresponding period a year ago.

Emaar’s recurring revenue-generating portfolio, including malls, hospitality, leisure, entertainment, and commercial leasing, collectively generated Dhs4.7bn during the period under review – accounting for 38 per cent of the property giant’s total revenue.

“Emaar’s recent performance reflects our ongoing commitment to sustained profitable growth and our focus on meeting the needs of our loyal and new customers,” said Mohamed Alabbar, founder of Emaar.

“Our investments have resulted in strong returns, driving our growth and improving our operations.”

The company’s earnings before interests, taxes, depreciation and amortisation (EBITDA) reached Dhs6.4bn in the first half of the year, a 5 per cent increase compared to H1 2022.

Emaar Development

Emaar Development, a majority-owned subsidiary, reported half-year property sales of Dhs19bn, a 25 per cent growth from a year ago, driven by the launch of 16 new projects across various master plans, creating a pipeline for future revenue.

The developer unveiled its newest lifestyle destination, The Oasis by Emaar, in June. The property, which covers a total land area of more than 9.4 million square meters, is valued at $20bn and offers over 7,000 residential units.

The company delivered around 5,100 residential units in prime locations such as Dubai Hills Estate, Dubai Creek Harbour, Downtown Dubai, Emaar Beachfront, Arabian Ranches, Dubai Marina and Emaar South in the first half of the year. The property firm has delivered more than 63,000 residential units as of June 2023, with over 28,000 residences currently under development in the UAE.

Emaar International

The company’s international operations reported property sales of Dhs1.2bn in H1 2023 while revenues reached Dhs1.3bn. The company’s revenues from international real estate business represent 11 per cent of the group’s total revenue, driven by operations in Egypt and India.

Mall, retail and commercial leasing

The company’s shopping mall, retail, and commercial leasing operations reported an 8 per cent increase in H1 2023 revenues to Dhs3.1bn from a year earlier. The portfolio’s EBITDA reached Dhs3.2bn during the same period, up 77 per cent over the first half of 2022.

Emaar attributed the growth to robust tenant sales, which rose by about 30 per cent in the six months to June 30. Emaar Malls Management’s prime mall assets achieved an impressive occupancy rate of approximately 96 per cent during the same period.

Hospitality and entertainment

The hospitality, leisure and entertainment divisions posted revenues of Dhs1.6bn, an 18 per cent increase from the same period a year ago, thanks to the steady recovery in the tourism industry and strong domestic spending.

The company’s UAE hotels, including those under management, reported an average occupancy rate of 70 per cent in the first half of the year. It opened its newest hotel, Address Jabal Omar Makkah, during the period.

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