Emaar Properties revealed it recorded AED12.3 billion ($3.3 billion) in revenues in H1 2023. The outstanding performance netted AED4.9 billion ($1.3 billion) in profits for the Dubai-based developer.
In a statement, Emaar said consistent performance and operational efficiency across its various businesses contributed to its first-half milestone.
In addition, Emaar’s H1 2023 financial results show an 11 percent increase in recurring revenue compared to H1 2022.
Its recurring revenue-generating portfolio, including malls, hospitality, leisure, entertainment, and commercial leasing, collectively generated AED4.7 bn during the first half. This revenue represents 38 percent of Emaar’s total revenue from these businesses.
Overall, Emaar’s tourism business and retail sales contributed significantly to its growth. This was also aided greatly by sustained real estate demand in Dubai.
Emaar’s focus on improving profit margins and operational efficiencies resulted in achieving a higher EBITDA. It which grew by 5 percent to AED6.4 bn ($1.7 bn) compared to H1 2022.
Meanwhile, Emaar achieved H1 2023 group property sales of AED20.2 bn ($5.5 billion), a 14 percent year-on-year (YoY) growth.
Supported by incremental property sales, the company’s revenue backlog from property sales reached AED62.8 bn ($17.1 bn) as of 30th June 2023. This backlog represents future revenue from property sales to be recognized over the next few years.
As a result of its consistent performance, Emaar has received credit rating upgrades from major rating agencies. S&P (BBB), Moody’s (Baa2) and Fitch (BBB) all gave Emaar a stable outlook. These upgrades reflect Emaar’s financial performance and improved financial position. Overall, these positive indicators point to a better outlook for Emaar’s future.
Mohamed Alabbar, founder of Emaar, said: “Emaar’s recent performance reflects our ongoing commitment to sustained profitable growth and in our focus on meeting the needs of our loyal and new customers. Our investments have resulted in strong returns, driving our growth and improving our operations. We are confident in our ability to continue executing our business strategy and meeting customer demand as we move forward in the year.”
Shopping mall, retail
In H1 2023, Emaar’s shopping mall, retail, and commercial leasing operations reported an eight percent growth in revenue compared to the previous year, reaching AED3.1 bn ($844 mn).
During the same period, the portfolio yielded an EBITDA of AED3.2 bn ($871 mn), a 77 percent increase over H1 2022. Emaar credits this success to robust tenant sales, which rose by approximately 30 percent compared to H1 2022. Moreover, Emaar Malls Management’s prime mall assets achieved an impressive occupancy rate of approximately 96 percent.
Hospitality, leisure, and entertainment
Emaar’s hospitality, leisure, and entertainment divisions, meanwhile, generated AED1.6 bn in revenue, marking an 18 percent increase from H1 2022. The growth was driven by the steady recovery in the tourism industry and strong domestic spending. Additionally, Emaar’s UAE hotels, including those under management, reported an average occupancy rate of 70 percent in the first half of 2023.
Moreover, Emaar also announced the opening of its newest hotel, Address Jabal Omar Makkah, featuring around 1,500 keys and conveniently located at the heart of the holy city.
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