Emaar records net profit rise of 43% to Dhs3.2bn for Q1 2023
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Emaar records net profit rise of 43% to Dhs3.2bn for Q1 2023

Emaar records net profit rise of 43% to Dhs3.2bn for Q1 2023

Emaar’s group property sales reached Dhs9.2bn, an 11 per cent increase compared to Q1 2022

Neesha Salian

Emaar Properties has announced its Q1 2023 financial results. The company attributed its strong performance to its property sales performance and operational excellence across its businesses.

It reported revenue to the tune of Dhs6.3bn ($1.7bn) in Q1 2023, supported by increased tourism, retail sales, and demand for real estate projects in Dubai, according to a statement published by the company.

Emaar recorded an EBITDA and net profit for the first quarter of 2023 of Dhs4bn and Dhs3.2bn, respectively, which is an increase of 26 per cent and 43 per cent, respectively, compared to Q1 2022.

Emaar’s group property sales in Q1 reached Dhs9.2bn, an 11 per cent increase compared to Q1 2022. The revenue backlog from property sales increased to Dhs 55.7bn, which will be recognised as revenue in the coming years.

Mohamed Alabbar, founder of Emaar, said the financial performance during the first quarter demonstrated the company’s capability to continually enhance its performance through effective management of its operational efficiencies. “As a direct consequence of our enhanced capacity to scale our operations, we have seen both an increase in EBITDA and a widening of margins.

“Owing to Emaar’s unwavering commitment to innovation, talent and operational excellence, the company is in a position to increase sales, lift profitability, and drive customers happiness and shareholders value.”

Emaar Development Q1 performance highlights

Emaar recorded robust property sales with a 26 per cent increase to Dhs8.603bn in Q1 2023 compared to Dhs6.843bn in Q1 2022, the company said in a statement.

This performance resulted from Emaar Development’s successful property launches, which created a good revenue pipeline for the future and marked steady progress towards the company’s strategic initiatives to further cement its position as a trusted developer.

Emaar International Q1 performance highlights

International real estate operations of Emaar achieved property sales of Dhs627m and generated revenue of Dhs420m, representing 7 per cent of Emaar’s overall revenue. The financial results of its international operations were primarily driven by the profitable operations in Egypt.

Shopping mall, retail and commercial leasing Q1 performance highlights

Shopping mall, retail and commercial leasing operations saw a 7 per cent increase in revenue for Q1 2023 compared to the same period in the prior year, reaching Dhs1.4bn ($388m).

It division recorded an EBITDA of Dhs1.7bn ($474m) from its shopping mall, retail and commercial leasing portfolio in Q1 2023, representing an increase of 114 per cent from the same period in 2022. This achievement is attributed to recognising the gain on sale of Namshi of Dhs700m and improved operational profitability complimented by high levels of tenant sales which grew by around 30 per cent compared to Q1 2022. Prime mall assets managed by Emaar Malls Management have reported an occupancy rate of over 95 per cent.

Hospitality, leisure, and entertainment Q1 performance highlights

The hospitality, leisure, and entertainment businesses recorded revenue of Dhs884m in Q1 2023, reflecting a growth of 17 per cent compared to Q1 2022.

This performance was the result of the continuing rebound in tourism and high domestic spending. The hotels in UAE under the hospitality arm of Emaar, including managed hotels, achieved average occupancy of 75 per cent during Q1 2023.

The company’s diversified portfolio of recurring revenue-generating businesses, including malls, hospitality, leisure, entertainment, and leasing, collectively recorded Dhs2.3bn in revenue during Q1 2023, representing an increase of 11 per cent compared to Q1 2022.

Revenues from these businesses constitute 37 per cent of its overall revenue.

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