Staff Report,
Dubai, UAE
Emaar Properties PJSC, a global property developer based in the UAE, has recorded net profit before tax of Dh4.3 billion, exhibiting 16 percent growth in the first quarter of 2024 compared to the same period last year. It collected revenue worth Dh6.7 billion and achieved earnings before interest, debt, depreciation, and amortisation (EBITDA) worth Dh4.4 billion which grew by 9 percent compared to Q1 2023. The improved performance was driven by growth in tourism, retail sales, and sustained real estate demand in Dubai.
Emaar achieved its highest ever quarterly group property sales of Dh13.5 billion in Q1 2024, reflecting a robust 47 percent growth compared to Q1 2023. Supported by incremental property sales, Emaar’s revenue backlog from property sales reached Dh78.3 billion as of March 2024, growing by 9 percent from December 2023. This backlog represents future revenue from property sales to be recognised over the next four to five years.
Mohamed Alabbar, founder of Emaar, said, “Emaar started the year with a strong performance, which reflects our focused approach towards sustainable growth and our commitment to customer satisfaction. Our investments have been strategic and result-oriented, leading to solid returns. We are driven by a clear strategy and a pragmatic approach to business, ensuring we add more value for our stakeholders. Our confidence in executing our business plans remains high, and we continue to play a crucial role in the economic landscape of Dubai and beyond.”
Emaar Development PJSC, a majority-owned subsidiary of Emaar Properties, successfully launched 10 projects across various masterplans and achieved highest ever quarterly property sales of Dh12.9 billion during the first quarter of 2024, reflecting a growth of 50 percent over Q1 2023. Its revenue reached Dh3.5 billion and its EBITDA increased by 48 percent to Dh1.7 billion. Emaar Properties reported consolidated revenue of Dh4.1 billion from its property development business in the UAE, including Dubai Creek Harbour.
During the first quarter of 2024, Emaar announced the launch of two new developments: The Heights Country Club & Wellness, and Grand Polo Club & Resort. These developments sprawl over a total 140 million square feet of land, boasting a combined development value of Dh96 billion.
Emaar has a sales backlog of Dh70.8 billion in the UAE which will be recognised as revenue in the coming years.
In Q1 2024, Emaar’s mall and commercial leasing operations reported revenue of Dh1.4 billion. During the same period, the portfolio delivered an EBITDA of Dh1.1 billion. Tenants achieved high sales, which rose by approximately 9 percent compared to Q1 2023. Emaar Malls Management’s prime assets recorded an average occupancy of nearly 98 percent as of 31 March 2023.
Emaar’s international real estate operations reported property sales of Dh625 million and revenue totalling Dh288 million during the first quarter of 2024. Primarily driven by operations in Egypt and India, revenue from international real estate operations represent 4 percent of Emaar’s total revenue.
Emaar’s hospitality, leisure, and entertainment divisions generated Dh983 million in revenue, marking a 10 percent increase from Q1 2023. The improved performance was driven by the steady growth in the tourism industry and an increase in domestic spending. Emaar’s UAE hotels, including those under management, reported an average occupancy of 82 percent in the first quarter of 2024.
Emaar’s recurring revenue-generating portfolio, including malls, hospitality, leisure, entertainment, and commercial leasing, collectively generated revenue Dh2.3 billion during Q1 2024. This revenue represents 34 percent of Emaar’s total revenue.
Ends
Also read: Emaar Development property sales jump 50% in Q1 2024
