A stunning view of Burj Khalifa in Dubai.
Inayat-ur-Rahman, Business Editor
Emaar Properties has announced continued growth in the first nine-month profitability, underpinned by robust property sales and growth in the performance of recurring revenue businesses.
Emaar recorded revenue during the first nine months of 2022, amounting to Dhs18.9 billion ($5.1 billion) supported by the uptrend of the Dubai property market and continued growth in recurring revenue businesses.
EBITDA and net profit of 9M 2022 increased by 47 per cent and 124 per cent respectively to Dhs 8.4 billion ($2.3 billion) and Dhs 5.8 billion ($1.6 billion) respectively as compared to 9M 2021, as a result of sustained revenue, improved margins and greater control on costs.
EBITDA and net profit for Q3 2022 increased by 12 per cent and 46 per cent respectively to Dhs 2.3 billion ($626 million) and Dhs 1.5 billion ($408 million), respectively, compared to similar period during last year.
Emaar 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 Dhs 26.9 billion ($7.3 billion) during 9M 2022. Property sales backlog of Emaar reached to Dhs 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 Dhs 7.5 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 PJSC have also approved the sale of Namshi to Noon for a total cash consideration of Dhs1.2 billion ($335 million), representing an excess of Dhs127 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.”
Emaar’s 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 all its market segments.
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 Dhs 23.2 billion ($6.3 billion), 11 per cent higher than same period in 2021. Emaar Development reported 9M 2022 revenue of Dhs 9.3 billion (US$ 2.5 billion) and recorded an EBITDA of Dhs 3.3 billion ($ 898 million).
Emaar’s international real estate operations recorded property sales of Dhs 3.7 billion (US$ 1 billion) for 9M 2022 and contributed revenue of Dhs 3.2 billion (US$ 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, 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 to Dhs 4 billion (US$ 1.1 billion).
Emaar Mall Management achieved 9M 2022 EBITDA of AED 2.4 billion ($ 653 million), 47 per cent 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 on 17 February 2022, 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.
The hospitality, leisure, entertainment and commercial leasing businesses of Emaar recorded revenue of AED 2.4 billion (US$ 653 million) for 9M 2022, a growth of 78 per cent compared to same period 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.