Real Estate In Dubai: Emaar Reports $2.3 Billion In Profit In 2022
Emaar revenues reached $5.1bn in the first nine months of the year
Emaar Properties announced revenue of $5.1bn (AED18.9bn) for the first nine months of the year.
Reflecting the growth in the Dubai real estate market it represented a 47 per cent increase in operating profit to $2.3bn (AED8.4 bn) compared to the same period last year.
Net profit for the period surged 124% to $1.6bn (AED5.8 billion) as a result of sustained revenue, improved margins and greater control on costs.
Emaar profit boost
On its three-month period results, Emaar said the operating and net profit increased by 12% and 46% respectively to $626m (AED2.3bn) and $408m (AED1.5bn) compared to similar period during last year.
The Dubai developer had successfully launched many projects both in the UAE and international markets. Led by new project launches and continued focus on sale of units in under-construction projects, Emaar has recorded highest ever group property sales of $7.3b (AED26.9 billion) during 9 months in 2022.
Property sales backlog reached to $14.1bn (AED 51.9bn), which will be recognised as revenue in the coming years.
The firm announced notable strategic transactions in the third quarter which reinforce the company’s strategy to focus on core pillars of the business and provide sustained long-term financial return and shareholder benefits.
The proposal to purchase Dubai Creek Harbour for an overall consideration of $2bn (AED7.5bn), to be paid equally in cash and shares of Emaar Properties, was approved by the board of directors as well as the shareholders in the general meeting.
The board of directors as well as shareholders of Emaar Properties have also approved the sale of Namshi to Noon for a total cash consideration of $335m (AED1.2 bn), representing an excess of $35m (AED127m) over the total investment in Namshi.
An Emaar spokesperson said: “Q3 was another strong period for Emaar as we continue to build on momentum generated in the first half of the year. The strategic measures put in place following the pandemic are seeing fruition as all parts of the company benefit from increased consumer confidence and activity, particularly in the real estate market.”
“As we move into Q4 2022, we are confident of a further uplift in our malls, hospitality, and retail assets as we head into the winter months and see a boost to the tourism and retail sectors,” he added.
The group said its integrated masterplan developments remain popular with both domestic and foreign investors thanks to the company’s longstanding reputation for customer focus, superior design, construction quality, and innovation across its market segments – Development; International; Malls Management and Hospitality, Leisure & Entertainment.
Emaar Development: The UAE build-to-sell property development business maintained strong property sales momentum in Dubai in Q3 and recorded nine month property sales of $6.3bn (AED 23.2bn), 11 per cent higher than same period in 2021.
It reported nine month revenue of $2.5b (AED9.3bn) and recorded an EBITDA of $898m (AED3.3 billion).
Emaar International: The company’s international real estate operations recorded property sales of $1bn (AED3.7bn) for the year so far and contributed revenue of $871m (AED3.2bn), representing 17 per cent of Emaar’s total revenue. The performance of international operations was led by successful operations in Egypt and India.
Emaar Malls Management: The wholly-owned shopping malls and retail arm, recorded 24 per cent growth so far this year, with revenue $1.1bn (AED4bn).
Emaar Mall Management: The division achieved operating profits of $653m (AED2.4bn), 47% higher than the same period last year. All the assets of mall management have achieved record tenant sales during the year, surpassing 2019 pre-Covid tenant sales.
Hospitality, Leisure & Entertainment: The hospitality, leisure, entertainment and commercial leasing businesses recorded revenue of $653m (AED2.4bn), up 78% over last year.
Emaar said its recurring revenue-generating businesses of malls, hospitality, leisure, entertainment and commercial leasing, together achieved a revenue of $1.7bn (AED6.3bn) for the nine-month period recording a growth of 40% compared to same period last year.
These businesses represent a 33 per cent of the total revenue