Emaar reports net profit of Dhs5.8bn for first nine months of 2022

Emaar reported that it recorded revenue amounting to Dhs18.9bn ($ 5.1bn) during the first nine months of the year, supported by the uptrend of the Dubai property market and continued growth in recurring revenue businesses.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) and net profit for the period increased by 47 per cent and 124 per cent respectively to Dhs8.4bn ($ 2.3bn) and Dhs5.8bn ($1.6bn) respectively as compared to the same period in 2021, as a result of sustained revenue, improved margins and greater control on costs.

EBITDA and net profit for Q3 2022 increased by 12 per cent and 46 per cent respectively to Dhs2.3bn ($626m) and Dhs1.5bn ($408m), respectively, compared to the same period last year.

Emaar successfully launched many projects both in the UAE and international markets. Led by new project launches and continued focus on the sale of units in under-construction projects, Emaar has recorded the highest ever group property sales of Dhs26.9bn ($7.3bn) in the nine-month period. Property sales backlog of Emaar reached Dhs51.9bn ($14.1bn), which will be recognised as revenue in the coming years.

Emaar has also 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 Dhs7.5bn ($2bn), 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 also approved the sale of Namshi to Noon for a total cash consideration of Dhs1.2bn ($335m), representing an excess of Dhs127m ($35m) over the total investment in Namshi.

An Emaar spokesperson said: “Q3 was another strong period for Emaar as we continue to build on the 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.”

Division highlights:

Emaar Development

Emaar Development, the UAE build-to-sell property development business, majority-owned by Emaar Properties, maintained strong property sales momentum in Dubai in Q3 and recorded property sales of Dhs23.2bn ($6.3bn), 11 per cent higher than the same period in 2021. Emaar Development reported revenue of Dhs9.3bn ($2.5bn) and recorded an EBITDA of Dhs3.3bn ($898m).

Emaar International

Emaar’s international real estate operations recorded property sales of Dhs3.7bn ($1bn) for the first nine months of 2022 and contributed revenue of Dhs3.2bn ($871m), 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

Emaar Malls Management, the wholly owned shopping malls and retail arm of Emaar, recorded 24 per cent growth in the nine-month period revenue compared to the same period last year, reaching Dhs4bn ($1.1bn). Emaar Mall Management achieved EBITDA of Dhs2.4bn ($653m), 47 per cent higher than the same period in 2021. All the assets of Emaar Mall Management have achieved record tenant sales, surpassing 2019 pre-Covid tenant sales. Leasing occupancy of Emaar Malls Management’s assets stands at 96 per cent.

At the end of September, Dubai Hills Mall has leased 87 per cent of its space.

 Hospitality, Leisure and Entertainment

The hospitality, leisure, entertainment and commercial leasing businesses of Emaar recorded revenue of Dhs2.4bn ($653m) for the nine-month period, a growth of 78 per cent compared to the same period last year. Emaar’s hotels in the UAE, including joint ventures and managed hotels, achieved strong ADRs with average occupancy levels of 67 per cent.

Emaar’s recurring revenue-generating businesses of malls, hospitality, leisure, entertainment and commercial leasing, together achieve revenue of Dhs6.3bn ($1.7bn) recording a growth of 40 per cent compared to same period last year. These businesses represent a 33 per cent of Emaar’s total revenue.