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Leading property developer Emaar posted solid first-quarter results, with its profit surging 43 percent from a year earlier to AED3.2 billion (US$873 million), while its revenue soared to AED6.3 billion ( 1.7 billion), mainly against the backdrop of increased demand from tourism, retail and real estate projects in Dubai.
Announcing results for the first three months to March 31, 2023, Emaar said its ebitda reached AED4 billion ($1.1 billion), up 23% from last year, thanks to its strong property sales and operational excellence.
In the first quarter, Emaar’s group real estate sales reached AED9.2 billion (US$2.5 billion), an 11 percent increase over the same period last year. Emaar’s backlog of revenue from property sales rose to AED 55.7 billion (US$ 15.2 billion), which will be recognized as revenue in the coming years.
Commenting on the strong first quarter results, Founder Mohamed Alabbar said: “Emaar’s first quarter financial results demonstrate our ability to continuously improve performance through the effective management of its operational efficiencies. As a direct result of our enhanced ability to scale our business, We have seen an increase in Ebitda and an expansion of margins.”
“Thanks to Emaar’s strong commitment to innovation, people and operational excellence, the company is able to increase sales, improve profitability and drive customer happiness and shareholder value,” he said.
Emaar’s holding subsidiary, Emaar Development, recorded real estate sales of AED8.6 billion (US$2.3 billion) in the first quarter of 2023, a 26 percent increase compared to the first quarter of 2022.
In the first quarter of 2023, Emaar’s real estate development revenue in the UAE reached AED3.6 billion (US$970 million). In the first quarter of 2023, we successfully launched seven new projects in the UAE.
Emaar’s international real estate business achieved AED 627 million (US$ 171 million) in property sales in Q1 2023, generating AED 420 million (US$ 114 million) in revenue, or 7% of Emaar’s total revenue . The financial performance of our international business was primarily driven by profitable operations in Egypt.
The mall, retail and commercial leasing business saw a 7% increase in revenue in the first quarter of 2023 to AED 1.4 billion (US$ 388 million) compared to the same period last year.
In the first quarter of 2023, Emaar’s EBIT for its shopping malls, retail and commercial leasing portfolio was AED 1.7 billion (US$ 474 million), an increase of 114% compared to the first quarter of 2022.
The group’s hotel, leisure and entertainment business recorded revenue of AED884 million (US$241 million) in the first quarter of 2023, an increase of 17% from the previous year.
The performance was the result of a continued rebound in tourism and high domestic consumption. In the first quarter of 2023, the average occupancy rate of UAE hotels (including managed hotels) under Emaar’s hotel division reached 75%.
Emaar’s diversified portfolio of recurring revenue-generating businesses, including shopping malls, hotels, leisure, entertainment and leasing, totaled AED 2.3 billion (US$ 629 million) in Q1 2023, compared to Q1 2022. than an increase of 11%. Revenue from these businesses accounted for 37% of Emaar’s total revenue.
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