Staff Report,
Dubai, UAE
Emaar Properties PJSC, developer of the world’s tallest tower Burj Khalifa, reported a 70 percent jump in net profit to US$3.2 billion (Dh11.6 billion) in 2023. Its revenue rose 7 percent to US$7.3 billion (Dh26.7 billion) with Earnings Before Interest, Tax, Debt, and Amortisation (EBITDA) growing 63 percent to US$4.4 billion (Dh16 billion) in 2023 as compared to 2022.
This performance was supported by growth in tourism, a continued upward trend in retail sales, and a consistent increase in demand in the UAE real estate, the company said in a statement.
Emaar achieved a 15 percent year-on-year growth in property sales to US$11 billion (Dh40.3 billion) in 2023, pushing its sales backlog to US$19.5 billion (Dh71.8 billion) as at 31 December 2023.
Mohamed Alabbar, founder of Emaar, stated, “Following a prosperous 2023, our achievements are indeed gratifying. The strategic initiatives undertaken in the past two years, coupled with enhancements in consumer confidence and overall business dynamics, especially in the real estate and retail sector, have significantly influenced our company’s operations throughout the previous year. With these results, we look forward to a positive performance in our shopping centres, hotels, and property sales in 2024. We remain committed to unveiling innovative projects and unparalleled offerings across all our business divisions.”
Its build-to-sell property development subsidiary, Emaar Development PJSC, achieved property sales of US$10.2 billion (Dh37.4 billion) following the launch of 27 new projects in 2023. It reported revenue of US$3.2 billion (Dh11.9 billion) and achieved EBITDA of US$2.2 billion (Dh8 billion), marking an 89 percent growth compared to 2022. It also recorded a total revenue of US$3.9 billion (Dh14.4 billion) from its property development business in UAE (including Dubai Creek Harbour owned by Emaar Properties). Its revenue backlog from property sales in the UAE increased to US$ 16.9 billion (Dh62.1 billion) as of 31 December 2023, representing a yearly growth of around 50 percent.
Emaar’s shopping malls, retail, and commercial leasing operations recorded revenue of US$1.6 billion (Dh5.8 billion) in 2023. During the same period, the portfolio achieved an EBITDA of US$1.4 billion (Dh5 billion), marking an increase of 54 percent over 2022, excluding US$191 million (Dh700 million) gain on sale of Namshi in first quarter of 2023. This performance is attributed to robust growth in tenant sales, which saw an increase of around 21 percent compared to 2022. The mall assets achieved an average occupancy of 97 percent as of 31 December 2023.
Emaar’s international real estate operations recorded property sales of US$800 million (Dh2.9 billion) in 2023 and recognised revenues totalling US$900 million (Dh3.1 billion). The performance of international operations in 2023 was primarily driven by Egypt and India. Driven by new launches, Emaar’s property sales in India quadrupled compared to 2022. Revenues from international real estate operations represent over 12 percent of Emaar’s total revenue in 2023.
In 2023, Emaar’s hospitality, leisure, and entertainment divisions recorded a growth in revenues of around 20 percent compared to 2022, reaching US$900 million (Dh3.4 billion). This growth was driven by a consistent recovery in the tourism industry, coupled with strong domestic spending. Emaar’s UAE hotels increased its average occupancy to 72 percent and sustained its ADRs level. Emaar expanded its collection of hotels, both domestically and internationally, and added around 1,600 new hotel keys with the opening of Vida Creek Beach in Dubai and Address Jabal Al Omar Makkah.
Emaar’s diverse and sustainable revenue-generating portfolio, encompassing malls, hospitality, leisure, entertainment, and commercial leasing, achieved positive results in 2023. The portfolio recorded revenues totalling US$2.5 billion (Dh9.2 billion), showcasing a growth of more than 26 percent compared to the corresponding period in the previous year (excluding Namshi, sold in February 2023). Revenue from this portfolio constituted over 34 percent of Emaar’s total revenue in 2023.
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Also read: Emaar Properties reports 42% growth in net profit to Dh8.2 billion during 9 months of 2023
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