Emaar Properties’ first quarter (Q1) net profit rose 43% to AED 3.2 billion (US$ 873 million), driven by strong property sales and operational excellence.
Emaar reported revenue of AED 6.3 billion, driven by rising demand from tourism, retail sales and real estate projects in Dubai. Emaar’s EBITDA was AED 4 billion (US$ 1.1 billion), an increase of 26% compared to the first quarter of 2022.
Emaar’s group real estate sales reached AED9.2 billion, an increase of 11% compared to the first quarter of 2022. Emaar’s property sales backlog increased to AED 55.7 billion, which will be recognized as revenue in the coming years.
Mohamed Alabbar, founder of Emaar, said: “Emaar’s financial results for the first quarter demonstrate our ability to continuously improve performance through the effective management of its operational efficiencies. As a direct result of our increased ability to scale our business, we have seen an increase in EBITDA and margin expansion. Thanks to Emaar’s strong commitment to innovation, people and operational excellence, the company was able to increase sales, improve profitability and enhance customer satisfaction and shareholder value.”
UAE Build-To-Sell Real Estate Development
Emaar’s holding subsidiary, Emaar Development, recorded AED 8.6 billion in real estate sales in Q1 2023, a 26% increase from Q1 2022. Emaar’s real estate development revenue in the UAE is AED 3. $6 billion in the first quarter of 2023. The company successfully launched seven new projects in the UAE in the first quarter of 2023.
In the first quarter of 2023, Emaar’s international real estate business achieved property sales of AED 627 million and revenue of AED 420 million, accounting for 7% of Emaar’s overall revenue. The financial performance of its international business was mainly driven by profitable operations in Egypt.
Shopping centers, retail and commercial leasing
The shopping malls, retail and commercial leasing business saw a 7% increase in revenue in the first quarter of 2023 compared to the same period last year to reach AED 1.4 billion. In the first quarter of 2023, Emaar’s shopping malls, retail and commercial leasing portfolio generated EBITDA of AED 1.7 billion, an increase of 114% compared to the same period in 2022. This achievement is attributable to the recognition of sales proceeds, with tenant sales up approximately 30% compared to the first quarter of 2022. The occupancy rate of prime mall assets managed by Emaar Malls Management is reported to be over 95%.
Hospitality, Leisure and Entertainment
Emaar’s hotel, leisure and entertainment business achieved revenue of AED 884 million in the first quarter of 2023, an increase of 17% compared to the first quarter of 2022. 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 Hospitality business reached 75%.
Emaar’s diversified portfolio of recurring revenue-generating businesses, including shopping malls, hotels, leisure, entertainment and leasing, recorded a combined revenue of AED 2.3 billion in Q1 2023, an 11% increase compared to Q1 2022. The revenue composition of these businesses accounted for 37% of Emaar’s total revenue. — trade arab news agency