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Emaar Properties announced a first-half profit, supported by strong property sales and recurring revenue growth.
Emaar posted strong first half revenue of AED13.575 billion ($3.696 billion), an increase of 10% compared to the first half of 2021, led by the strong performance of its core property development business and growing recurring revenue business %.
Earnings before interest, taxes, depreciation and amortization (Compared to the first half of 2021, EBITDA increased by 66% to AED 6.112 billion (US$ 1.664 billion) due to higher revenue, improved margins and continued cost optimization.
Emaar’s successful launch of properties in the UAE and international markets and a focus on sales of under-construction projects resulted in Emaar’s first-half group property sales reaching a record AED17.672 billion (US$4.811 billion), an increase of 5%. Sales in the first half of 2021 were AED 16.842 billion ($4.585 billion).
In the second quarter of 2022, Emaar’s EBITDA increased by 53% to AED 2,932 million ($798 million), compared to EBITDA of AED 1,922 million ($523 million) in the same period of 2021.
Emaar’s revenue for the second quarter of 2022 was AED 6,940 million ($1,889 million), an increase of 8% compared to AED 6,439 million ($1,753 million) in the second quarter of 2021.
A strong backlog of property sales of AED47.982 billion (US$13.063 billion) at the end of the first half of 2022 reflects Emaar’s solid financial position.
An Emaar spokesperson said: “We successfully continued the momentum built in the first quarter of 2022, delivering Emaar’s strong second quarter results. Thanks to the post-COVID-19 recovery in the real estate market and our malls, hotels and comparable sales in 2021 , retail assets added to our bottom line in the second quarter of this year. We continue to benefit from the long-term investment in talent in all aspects of our business over the past year, and Emaar is once again expected to be attractive and viable for all stakeholders. Continued returns.”
“At a macroeconomic level, economic growth in Dubai and recent changes in areas such as business company laws and visa regulations are driving growth and attracting investment from many industries, which indirectly increases demand for our products, supported by our continued focus on Provide quality products and experiences that exceed customer expectations.”
Key Highlights
Emaar Development: Emaar Development, the UAE build-for-sale property development business majority-owned by Emaar Properties, maintained its strong property sales momentum in Dubai, with property sales hitting a record high of AED15.216 billion ($4.143 billion) in the first half of the year, up from a year earlier 10% higher. the same period in 2021. Emaar Development reported revenue of AED7.282 billion ($1.983 billion) in the first half of 2022, with EBITDA rising 15% to AED2.564 billion ($698 million).
Emaar International: Emaar’s international real estate business recorded AED 2.428 billion (US$ 661 million) in real estate sales in the first half of 2022 and contributed AED 2.068 billion (US$ 563 million) in revenue, accounting for 15% of Emaar’s total revenue , mainly thanks to successful operations in Egypt and India.
Emaar Mall Management: Emaar Malls Management, the wholly-owned mall and retail arm of Emaar Properties, posted a 30% year-on-year increase in first-half 2022 revenue, led by record tenant sales at The Dubai Mall in the first half of 2022 exceeding pre-COVID-19 tenant sales in 2019 % last year, reaching AED 2.661 billion ($725 million). Emaar Mall Management’s first half EBITDA was AED 1.644 million ($448 million), 66% higher than the first half of 2021. The lease occupancy rate of Emaar Malls Management assets is 94%.
Opening on 17 February, Dubai Hills Mall brings a portfolio of world-class shopping, leisure and entertainment brands and is quickly becoming the city’s much-loved and iconic lifestyle destination. By the end of the first half of 2022, the rental occupancy rate was 84%, including international brands and local concepts.
Hospitality, leisure and entertainment: Emaar’s hotel, leisure, entertainment and commercial leasing business recorded revenue of AED15.64 billion ($426 million) in the first half of 2022, an increase of more than 93% compared to the first half of 2021. Emaar’s hotels in the UAE, including joint venture and managed hotels, have an average occupancy rate of 71%.
Emaar’s recurring revenue-generating businesses, including malls, hotels, leisure, entertainment and commercial leasing, achieved AED 4.224 billion (US$ 1.15 billion) in revenue and AED 2.955 billion (US$ 805 million) in EBITDA in the first half of 2022, That’s a 48% increase and a 78% increase compared to the same period last year. These businesses accounted for 31% and 48% of Emaar’s total revenue and EBITDA, respectively.
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