Emaar Properties has recorded first half (H1) 2023 revenues of AED12.3 billion ($3.3 billion) with net profit growing by 15% compared to the same period last year, reaching AED4.9 billion ($1.3 billion), the Dubai-headquartered company said. 

 

It said the H1 results showcase consistent performance and operational efficiency across its various businesses. 

 

Key Highlights

Emaar's consistent performance was driven by the growth in tourism, retail sales, and sustained real estate demand in Dubai.

 

Emaar's focus on improving profit margins and operational efficiencies resulted in achieving higher EBITDA, which grew by 5% to AED6.4 billion ($1.7 billion) compared to H1 2022.

 

Emaar achieved H1 2023 group property sales of AED20.2 billion ($5.5 billion), a 14% YoY growth.

Supported by incremental property sales, the company's revenue backlog from property sales reached AED62.8 billion ($17.1 billion) as of 30th June 2023. This backlog represents future revenue from property sales to be recognised over the next few years.

 

During the period, Emaar has received credit rating upgrades from major rating agencies S&P (BBB), Moody's (Baa2) and Fitch (BBB), all with a stable outlook. These upgrades reflect Emaar's financial performance and improved financial position. Overall, these positive indicators point to a better outlook for Emaar's future.

 

Mohamed Alabbar, Founder of Emaar, said: "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."

 

UAE Build-To-Sell Property Development

Emaar Development, a majority-owned subsidiary, achieved property sales of AED19 billion ($5.2 billion) during the first half of 2023, reflecting a growth of 25% over H1 2022. The UAE build-to-sell operation reported H1 2023 revenue of AED6.3 billion ($1.7 billion) and successfully launched 16 new projects in the UAE. 

 

Shopping Mall, Retail 

In H1 2023, Emaar's shopping mall, retail, and commercial leasing operations reported an 8% growth in revenue compared to the previous year, reaching AED3.1 billion ($844 million). During the same period, the portfolio yielded an EBITDA of AED3.2 billion ($871 million), a 77% increase over H1 2022. This success is credited to robust tenant sales, which rose by approximately 30% compared to H1 2022. Emaar Malls Management's prime mall assets achieved an impressive occupancy rate of approximately 96%.

 

Emaar International 

Emaar's international real estate operations reported property sales of AED1.2 billion and revenues totalling AED1.3 billion during the first half of 2023. Primarily driven by operations in Egypt and India, revenues from international real estate operations represent 11% of Emaar's total revenue.

 

Hospitality, Leisure, and Entertainment

In the first half of 2023, Emaar's hospitality, leisure, and entertainment divisions generated AED1.6 billion in revenue, marking an 18% increase from H1 2022. The growth was driven by the steady recovery in the tourism industry and strong domestic spending. Emaar's UAE hotels, including those under management, reported an average occupancy rate of 70% in the first half of 2023.

During the period, Emaar also announced the opening of its newest hotel, Address Jabal Omar Makkah, featuring around 1,500 keys and conveniently located at the heart of the holy city.

 

Recurring Revenue

Emaar's H1 2023 financial results show an 11% increase in recurring revenue compared to H1 2022.

The company's recurring revenue-generating portfolio, including malls, hospitality, leisure, entertainment, and commercial leasing, collectively generated AED4.7 billion during H1 2023. This revenue represents 38% of Emaar's total revenue from these businesses. - TradeArabia News Service