Staff Report,
Dubai, UAE
Emaar Properties, developer of the world’s tallest tower Burj Khalifa, said it recorded a 42 percent growth in net profit to Dh8.2 billion (US$2.2 billion) on revenues of Dh18.4 billion (US$5 billion). It recorded 29 percent growth in Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA), surpassing the 9M 2022 record.
On a yearly basis, Emaar recorded property sales of Dh31.1 billion (US$8.5 billion) for the first 9 months of 2023. Its subsidiary, Emaar Development, launched 20 new projects in the UAE and recorded robust sales of Dh28.9 billion (US$7.9 billion) during the first nine months of 2023, reflecting a growth of 25 percent over the same period in the previous year. It accumulated revenue of Dh7.4 billion (US$2 billion) and achieved EBITDA of Dh4.5 billion (US$1.2 billion), a 36 percent growth over the same period in 2022.
In the third quarter of 2023, Emaar noted revenue backlog year-over-year growth from property sales in the UAE by 60 percent.
Mohamed Alabbar, Founder of Emaar, said: “Our results are a testament to Emaar’s unwavering pursuit of excellence and innovation. With the continued surge in tourism, the launch of attractions like the Dubai Mall Chinatown, and the positive trajectory in property sales, we are honouring our commitment to both our loyal and new customers. Our financial performance, underscored by recent credit rating upgrades, reflects our strategic investments and their ensuing returns. As we approach the year’s end, we remain confident and focused on further enhancing our operational efficiencies, thereby delivering even more value to our customers and stakeholders.”
In the first nine months of 2023, Emaar’s shopping malls, retail, and commercial leasing operations reported a revenue of Dh4.3 billion (US$1.2 billion). It achieved an EBITDA of Dh3.6 billion (US$980 million), a 36 percent increase from the same period in 2022 after excluding gain on sale of Namshi in the first quarter of 2023 amounting to Dh700 million (US$191 million). This success is credited to robust tenant sales, which grew by around 25 percent compared to 9M 2022. The mall assets achieved an impressive average occupancy rate of 97 percent.
Globally, Emaar’s international real estate operations division achieved property sales of Dh2.2 billion (US$599 million) and recorded revenues totaling Dh2.1 billion (US$572 million) during the first nine months of 2023. The revenue accounts for over 11 percent of Emaar’s total revenue. Operations in Egypt and India largely contributed to Emaar’s international performance.
Emaar’s hospitality, leisure, and entertainment divisions recorded Dh2.5 billion (US$681 million) in revenues, achieving 22 percent growth compared to 9M 2022. The growth was mainly driven by the steady recovery in the tourism industry and strong domestic spending. Emaar’s UAE hotels, including those under management, reported an average occupancy of 70 percent in the first nine months of 2023.
Emaar’s 9M 2023 financial results show a 26 percent increase in revenue from its recurring businesses compared to the same period last year; after excluding Namshi, which was sold in February 2023. The company’s recurring revenue-generating portfolio, including malls, hospitality, leisure, entertainment, and commercial leasing, collectively generated revenues of Dh6.8 billion (US$1.9 billion) during 9M 2023 which represents 37 percent of Emaar’s total revenue.
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