Emaar profit jumps 17% as developer moves to buy out listed subsidiary

Dubai: Emaar Properties reported a 17% increase in net profit after tax to Dh17.1 billion for the first nine months of 2026, supported by higher property development revenue and steady income from its shopping malls and other recurring businesses, even as regional uncertainty weighed on hospitality operations.

The Dubai-listed developer's revenue rose 13% to Dh37.5 billion during the January-September period, compared with Dh33.1 billion a year earlier. Net profit before tax increased 18% to Dh19.8 billion, while earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 19% to Dh19.7 billion.

Emaar's board also approved a one-time special dividend of Dh4.4 billion, equivalent to 50 fils per share, in addition to its regular annual dividend.

Emaar Properties shares rose 1.8% to Dh12.52 on the Dubai Financial Market on Thursday, extending gains after a 4.41% jump in the previous session. The stock remained down about 11% since the start of the year.

The results come a day after Emaar Properties announced plans to acquire the remaining stake in its listed subsidiary Emaar Development, in which it already owns more than 79%, through a voluntary cash offer of Dh15 per share. The proposed buyout, potentially worth up to Dh12.6 billion ($3.4 billion), remains subject to board approval.

The company reported group property sales of Dh34.7 billion during the nine months, while its revenue backlog from previously sold properties reached Dh158.8 billion at the end of September, up 6% from a year earlier.

The backlog represents sales that have yet to be recognised as revenue, providing the developer with visibility over future earnings as construction progresses and properties are delivered.

Unit profit up 24%

Emaar Development, the group's majority-owned UAE residential development subsidiary, reported a 24% increase in net profit after tax to Dh10.8 billion, compared with Dh8.7 billion in the corresponding period last year.

Revenue at the subsidiary increased 26% to Dh22.2 billion, while EBITDA rose 28% to Dh11.4 billion, representing a margin of 52%.

The subsidiary recorded Dh26.2 billion in property sales during the nine months, with a revenue backlog of Dh119.8 billion as of September 30.

Emaar Development said property sales reflected a measured pace amid evolving geopolitical conditions, while construction progress and the recognition of previously booked sales supported revenue growth.

Across its UAE property development operations, including projects such as Dubai Creek Harbour, Emaar Properties reported consolidated revenue of Dh28.3 billion, an increase of 18% year-on-year. The UAE development revenue backlog stood at Dh127.2 billion.

The group launched 14 projects during the nine months, including developments at Heights Country Club & Wellness, Dubai Creek Harbour and The Valley.

Construction boom

Emaar Development awarded 23 main construction contracts worth Dh13.5 billion and 43 infrastructure contracts valued at Dh4.3 billion during the first nine months.

The group handed over more than 4,800 residential units in the UAE, with more than 80% of its active UAE projects ahead of schedule as of September 30. Emaar Development separately reported that more than 85% of its active projects were ahead of schedule.

Emaar Properties' total land bank stood at approximately 604 million square feet, including 315 million square feet in the UAE, providing capacity for future development.

The group also highlighted its previously announced Dh200 billion masterplan, which will add to its long-term development pipeline.

Mohamed Alabbar, founder of Emaar, said: “Our nine-month results reflect the work happening across Emaar, from construction sites and handovers to the daily management of our destinations. A home purchase is a significant commitment, and our responsibility continues long after the sale.”

High Dubai malls occupancy

Emaar's shopping malls, retail and commercial leasing businesses recorded a 10% increase in revenue to Dh5.2 billion during the nine months.

EBITDA from the segment rose 8% to Dh4.4 billion, while occupancy across its retail and commercial leasing portfolio stood at approximately 98% at the end of September.

Dubai Mall expanded its retail offering during the period, including the UAE debut of Primark, the opening of Ulta Beauty's second UAE store and new luxury outlets along Fashion Avenue.

The group's wider recurring revenue businesses, comprising shopping malls, hospitality, leisure, entertainment and commercial leasing, generated Dh7.6 billion in revenue, broadly unchanged from the corresponding period of 2025.

These operations contributed Dh5.9 billion in EBITDA, accounting for 30% of Emaar's total group EBITDA.

Hotel occupancy drops

Hospitality was a weaker area of the group's performance, reflecting the impact of lower international visitor numbers across the region.

Average occupancy at Emaar's UAE hotels declined to 63% during the first nine months of 2026, compared with 80% a year earlier.

The hospitality, leisure and entertainment business generated Dh2.4 billion in revenue. Emaar said domestic and local demand partly offset the decline in international visitors, while the business continued to focus on operating efficiency and cost management.

The company also expanded its hospitality portfolio in September with the opening of Vida Aljada in Sharjah, marking the brand's entry into the emirate.

Int'l property sales rise

Outside the UAE, Emaar's international development business recorded Dh8.5 billion in property sales, up 5% from the corresponding period last year.

Revenue from international development increased 16% to Dh1.6 billion, accounting for approximately 4.3% of group revenue, with Egypt and India identified as key contributing markets.

Emaar said it would continue to align new project launches and investment decisions with market conditions, while prioritising construction progress, handovers and cost management.

The company also reported Dh200 million in contributions to community initiatives during the period, divided equally between two endowment funds supporting orphans and vulnerable groups across the UAE.

With Dh158.8 billion in property sales awaiting revenue recognition, the group's near-term focus remains on delivering its existing development pipeline while managing its recurring-income businesses amid changing market conditions.