Emaar Properties reported $2.5 billion sales in the first quarter of 2023, riding on the surge in demand for property assets in Dubai.
The Q1 sales figures are 11 percent higher than that in the corresponding period of last year.
The jump in sales helped the company to achieve a 43 percent jump in net profit on a revenue of $1.7 billion in the January-March quarter of this year.
The company said its revenue backlog from property sales increased to $15.2 billion (AED 55.7 billion), which will be recognised as revenue in the coming years.
Mohamed Alabbar, founder of Emaar, said the company has seen both an increase in EBITDA and a widening of margins as a direct consequence of its enhanced capacity to scale up operations.
“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 shareholder value,” he said.
Emaar Development
Emaar said the bulk of its sales in the first quarter – $2.3 billion – came from its majority-owned subsidiary, Emaar Development. The company posted a 26 percent rise in its sales performance in the period, compared to the same year-ago period.
In the first quarter of 2023, Emaar Development delivered approximately 1,600 residential units in prime locations such as Dubai Hills Estate, Dubai Creek Harbour, Downtown Dubai and Emaar Beachfront.
The company said it has delivered over 59,500 residential units as of March 2023, with over 28,500 residences currently under development in the UAE.
Emaar Development’s improved performance came on the back of successfully launching several projects, which created a good revenue pipeline for the future as well.
Emaar said its majority owned arm launched seven projects during the first quarter of 2023. Tgese were Elora in The Valley, Elvira in Dubai Hills Estate, Palace Residence North, Cedar and Savanna in Dubai Creek Harbour, Anya and Anya 2 in Arabian Ranches III.
Emaar International
Emaar International, the group arm which handles its international operations, achieved property sales to the tune of $171 million and generated a revenue of $ 114 million, accounting for seven per cent of Emaar’s overall revenue in Q1, 2023.
The company said the improved financial results of its international operations were primarily driven by the profitable operations in Egypt.
Shopping Mall, Retail and Commercial Leasing
The group’s shopping mall, retail and commercial leasing operations saw a 7 per cent increase in revenue to $388 million, while its hospitality, leisure and entertainment businesses recorded a revenue of $ 41 million in Q1 2023, riding on the back of the rebound in tourism and retail sectors.
This, however, included the $191 million the group received from the sale of Namishi, its e-commerce venture.
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