Driven by the growth in tourism, retail sales, and sustained real estate demand in Dubai, Emaar Properties released a strong set of financial numbers for the first half of 2023.
The Dubai real estate giant recorded half-year 2023 revenues of AED12.3 billion ($3.3 billion) and group property sales of AED20.2 billion ($5.5 billion), a 14 percent YoY growth. Net profit grew 15 percent compared to the same period last year, reaching AED4.9 billion ($1.3 billion).
The company’s focus on improving profit margins and operational efficiencies resulted in achieving higher EBITDA, which grew by 5 percent to AED6.4 billion ($1.7 billion) compared to H1 last year.
With incremental property sales, the company’s revenue backlog reached AED62.8 billion ($17.1 billion) as on 30 June 2023. This backlog represents future revenue from property sales to be recognised over the next few years.
Founder Mohamed Alabbar, commented: “Emaar’s recent performance reflects our ongoing commitment to sustained profitable growth and in our focus on meeting the needs of our loyal and new customers. Our investments have resulted in strong returns, driving our growth and improving our operations. We are confident in our ability to continue executing our business strategy and meeting customer demand as we move forward in the year.”
The performance was also recognised by major ratings agencies. Emaar received credit rating upgrades from S&P (BBB), Moody’s (Baa2) and Fitch (BBB), all with a stable outlook.
UAE build-to-sell continues to excel
Emaar Development, a majority-owned subsidiary, was the star performer. Having successfully launched 16 new projects in the UAE, the unveiling of yet another master-planned development ‘The Oasis’ in June, it achieved property sales of AED19 billion ($5.2 billion), reflecting a growth of 25 percent over H1 2022. UAE build-to-sell operation reported revenue of AED6.3 billion ($1.7 billion).
Emaar’s shopping mall, retail, and commercial leasing operations reported an 8 percent growth in revenue, reaching AED3.1 billion ($844 million). Operational excellence and healthy uptake was evident as the portfolio yielded an EBITDA of AED3.2 billion ($871 million), a 77 percent increase over H1 2022. Tenant sales rose by approximately 30 percent compared to last year.
Emaar Malls Management’s prime mall assets achieved an impressive occupancy rate of approximately 96 percent.
Egypt, India sales boost Emaar International
Emaar’s international real estate operations reported property sales of AED1.2 billion ($327 million) and revenues of AED1.3 billion ($354 million). This was primarily driven by operations in Egypt and India. Revenues from international operations represented 11 percent of Emaar’s total revenue.
The hospitality, leisure, and entertainment divisions generated AED1.6 billion ($436 million) in revenue, an 18 percent increase YoY. Steady recovery in the tourism industry and strong domestic spending helped and Emaar’s UAE hotels reported an average occupancy rate of 70 percent.
During the period, Emaar also announced the opening of its newest hotel, Address Jabal Omar Makkah, featuring nearly 1,500 keys and located at the heart of the Holy City.
The results also show an 11 percent increase in recurring revenue. The portfolio, including malls, hospitality, leisure, entertainment, and commercial leasing, collectively garnered AED4.7 billion ($1.3 billion), representing 38 percent of Emaar’s total revenue from these businesses.
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