Leading UAE developer Emaar Properties has recorded significant increase in the first half profitability, underpinned by robust property sales and growth in the performance of recurring revenue businesses.

 

Led by robust performance of its core property development business, and complemented by growing recurring revenue operations, Emaar recorded strong first half revenue of AED13.575 billion ($3.696 billion), growth of 10% compared to H1 2021. 

 

Announcing the results for first six months, Emaar said its ebitda surged by 66% to hit AED6.11 billion ($1.66 billion) compared to last year as a result of higher revenue with improving margins and continued cost optimisation.

 

Successful launch of properties by Emaar, both in the UAE and international markets, and concerted focus on sales of under-construction projects resulted in Emaar achieving record first half group property sales of AED17.67 billion ($4.81 billion), an increase of 5% compared to H1 2021 sales of AED16.84 billion ($%4.58 billion).

 

During the second quarter of 2022, Emaar recorded an increase in ebitda of 53% to AED2.93 billion ($798 million) compared to ebitda of AED1.92 billion ($523 million) in the same period of 2021. Emaar’s Q2 2022 revenue stood at AED6.94 billion ($1.88 billion), an increase of 8% compared to Q2 2021 revenue of AED6.43 billion ($1.75 billion).

 

The strong property sales backlog of AED47.98 billion ($13.06 billion) at the end of H1 2022, which will be recognised as revenue in the future, further underlines Emaar’s robust financial position in preserving high revenue, profitability and shareholders’ return in the foreseeable future, said Emaar in its statement.

 

"We have delivered strong second quarter results of Emaar by successfully carrying on the momentum built during the first quarter of 2022. Thanks to the post-pandemic uptick in the real estate market and strong recovery of our mall, hospitality and retail assets which increased our second quarter profit this year, in comparison to the same period in 2021," said its spokesperson.

 

"On a macro-economic level, Dubai’s growing economy and recent changes in areas such as commercial companies law and visa regulations are driving growth and attracting investment across many sectors, which indirectly increases demand for our products, underpinned by our continued focus on delivering high quality products and experiences that surpass our customers’ expectations,"

he stated.

 

With an established reputation for excellence in design, build quality and innovation, Emaar consistently offers premium experiences and lifestyle opportunities across market segments, and its integrated masterplan developments continues to remain popular with local and international investors, he added.

 

Emaar’s international real estate operations recorded property sales of AED2.42 billion ($661 million) in H1 2022 and contributed revenue of AED2.06 billion ($563 million), which represents 15% of the developer’s total revenue, primarily driven by successful operations in Egypt and India.

 

Led by record tenant sales in H1 2022 at The Dubai Mall, surpassing 2019 pre-Covid tenant sales, Emaar Malls Management, the shopping malls and retail arm of Emaar Properties, recorded 30% growth in H1 2022 revenue compared to same period last year, reaching AED2.66 billion ($725 million). 

 

Emaar Mall Management achieved H1 ebitda of AED1.64 million ($448 million), 66% higher than H1 2021. Leasing occupancy of Emaar Malls Management’s assets stands at 94%, said the spokesperson.

 

The hospitality, leisure, entertainment and commercial leasing businesses of Emaar recorded revenue of AED1.56 million ($426 million) for H1 2022, grew over 93% compared to H1 2021. 

 

Emaar’s hotels in UAE, including JV and managed hotels, boasting average occupancy levels of 71%, further proof of the GCC’s tourism sector going strength to strength in post-pandemic recovery, he added.-TradeArabia News Service