Emaar Properties announced it had a profitable first half, underpinned by robust property sales and growth in the performance of recurring revenue businesses.
Led by the strong performance of its core property development business, and complemented by growing recurring revenue operations, Emaar recorded a robust first half revenue of Dhs13.575bn ($3.696bn), a growth of 10 percent compared to H1 2021.
Earnings before interest, taxes, depreciation, and amortization EBITDA) increased by 66 percent to Dhs6.112bn ($1.664bn) compared to H1 2021, as a result of higher revenue with improving margins and continued cost optimization.
- Malls revenue records 30% growth compared to H1 2021, supported by record tenant sales which surpass pre-Covid level;
- Hospitality revenue grew by 64% compared to H1 2021, reflecting the tourism sector’s robust post-pandemic recovery;
- Recorded highest ever H1 UAE property sale of AED 15.244 billion (US$ 4.150 billion), 10% higher than H1 2021; and
- Property sales backlog at AED 47.982 billion (US$ 13.063 billion), provides strong revenue visibility for the coming years.
This performance is a testament to the continued confidence in Emaar’s brand and the overall post-pandemic recovery of Dubai’s economy, led by the real estate market.
The successful launch of properties by Emaar, both in the UAE and international markets, and focus on sales of under-construction projects resulted in Emaar achieving record first-half group property sales of Dhs17.672bn ($4.811bn), an increase of 5 percent compared to the H1 2021 sales of Dhs16.842bn ($4.585bn). During the second quarter of 2022, Emaar recorded an increase in EBITDA of 53 percent to Dhs2.932bn ($798m) compared to EBITDA of Dhs1.922bn ($523m) in the same period of 2021. Emaar’s Q2 2022 revenue stood at Dhs6.940bn ($1.889bn), an increase of 8 percent compared to Q2 2021 revenue of Dhs6.439bn ($1.753bn). The strong property sales backlog of Dhs47.982bn ($13.063bn) at the end of H1 2022, reflected Emaar’s robust financial position.
An Emaar spokesperson said: “We have delivered strong second-quarter results of Emaar by successfully carrying on the momentum built during the first quarter of 2022. Thanks to the post-pandemic uptick in the real estate market and strong recovery of our mall, hospitality, and retail assets we increased our second-quarter profit this year, in comparison to the same period in 2021. We are continuing to reap the benefits of long-term investment in the human talent we made last year across all aspects of our business, and Emaar is again on track to generate attractive and sustainable returns for all stakeholders.” “On a macro-economic level, Dubai’s growing economy and recent changes in areas such as commercial companies law and visa regulations are driving growth and attracting investment across many sectors, which indirectly increases demand for our products, underpinned by our continued focus on delivering high-quality products and experiences that surpass our customers’ expectations.”
