DUBAI, Emaar Properties has announced continued growth in the first nine-month profitability, recording a revenue of AED18.9 billion ($ 5.1 billion) supported by the uptrend of the Dubai property market and continued growth in recurring revenue businesses.
Announcing the results for the January to September period, Emaar said its EBITDA hit AED8.4 billion ($2.3 billion), up 47% over last year, while its net profit for the period surged 124% to AED5.8 billion ($1.6 billion) as a result of sustained revenue, improved margins and greater control on costs.
On its three-month period results, Emaar said the ebitda and net profit increased by 12% and 46% respectively to AED2.3 billion ($626 million) and AED1.5 billion ($408 million) compared to similar period during last year.
The Dubai developer had successfully launched many projects both in the UAE and international markets. Led by new project launches and continued focus on sale of units in under-construction projects, Emaar has recorded highest ever group property sales of AED26.9 billion ($7.3 billion) during 9 months in 2022.
Property sales backlog of Emaar reached to AED 51.9 billion ($14.1 billion), which will be recognized as revenue in the coming years.
Emaar has also announced notable strategic transactions in the third quarter which reinforce the company’s strategy to focus on core pillars of the business and provide sustained long-term financial return and shareholder benefits.
The proposal to purchase Dubai Creek Harbour for an overall consideration of AED7.5 billion ($2 billion), to be paid equally in cash and shares of Emaar Properties PJSC, was approved by the Board of Directors as well as the shareholders in the general meeting.
The Board of Directors as well as shareholders of Emaar Properties have also approved the sale of Namshi to Noon for a total cash consideration of AED1.2 billion ($335 million), representing an excess of AED127 million ($35 million) over the total investment in Namshi.
An Emaar spokesperson said: “Q3 was another strong period for Emaar as we continue to build on momentum generated in the first half of the year. The strategic measures put in place following the pandemic are seeing fruition as all parts of the company benefit from increased consumer confidence and activity, particularly in the real estate market.”
“As we move into Q4 2022, we are confident of a further uplift in our malls, hospitality, and retail assets as we head into the winter months and see a boost to the tourism and retail sectors,” he added.
Emaar said its integrated masterplan developments remain popular with both domestic and foreign investors thanks to the company’s longstanding reputation for customer focus, superior design, construction quality, and innovation across its market segments – Emaar Development; Emaar International; Malls Management and Hospitality, Leisure & Entertainment.
Emaar Development
Emaar Development, the UAE build-to-sell property development business, majority-owned by Emaar Properties, maintained strong property sales momentum in Dubai in Q3 and recorded 9M 2022 property sale of AED 23.2 billion ($6.3 billion), 11 per cent higher than same period in 2021.
Emaar Development reported 9M 2022 revenue of AED9.3 billion ($2.5 billion) and recorded an EBITDA of AED3.3 billion ($898 million).
Emaar International
Emaar’s international real estate operations recorded property sales of AED3.7 billion ($1 billion) for 9M 2022 and contributed revenue of AED 3.2 billion ($871 million), representing 17 per cent of Emaar’s total revenue. The performance of international operations was led by successful operations in Egypt and India.
Emaar Malls Management
Emaar Malls Management, the wholly-owned shopping malls and retail arm of Emaar, recorded 24 per cent growth in 9M 2022 revenue compared to same period last year, reaching AED4 billion ($1.1 billion).
Emaar Mall Management achieved 9M 2022 EBITDA of AED2.4 billion ($653 million), 47% higher than 9M 2021. All the assets of Emaar Mall Management have achieved record tenant sales during 9M 2022, surpassing 2019 pre-Covid tenant sales. Leasing occupancy of Emaar Malls Management’s assets stands at 96 per cent.
Dubai Hills Mall, unveiled this February, features an unmatched selection of retail, dining, and entertainment concepts has in no time became an iconic lifestyle destination. As at the end of September 2022, the Dubai Hills Mall was leased 87 per cent.
Hospitality, Leisure & Entertainment
The hospitality, leisure, entertainment and commercial leasing businesses of Emaar recorded revenue of AED2.4 billion ($653 million) for 9M 2022, up 78% over last year.
Emaar’s hotels in the UAE, including joint ventures and managed hotels, achieved strong ADRs with average occupancy levels of 67 per cent during 9M 2022, providing further proof of robust post-pandemic recovery.
Emaar said its recurring revenue-generating businesses of malls, hospitality, leisure, entertainment and commercial leasing, together achieved a revenue of AED6.3 billion ($1.7 billion) for the nine-month period recording a growth of 40% compared to same period last year. These businesses represent a 33 per cent Emaar’s total revenue.
Source: Emirates News Agency
