Emaar recorded Dh18.9 billion in revenue in the first nine months of 2022, the group said on Monday, buoyed by robust property sales.
EBITDA and net profit during the period increased by 47 per cent and 124 per cent, respectively, to Dh8.4 billion and Dh5.8 billion as a result of sustained revenue, improved margins and greater control on costs, it said in a statement. For Q3 alone, EBITDA and net profit were up 12 per cent and 46 per cent, respectively, to Dh2.3 billion and Dh1.5 billion.
Highest sales ever
Led by new project launches and continued focus on sale of units in under-construction projects, Emaar recorded the highest ever group property sales of Dh26.9 billion in the nine-month period. Property sales backlog reached Dh51.9 billion, and will be recognised as revenue in the coming years, the company said.
Emaar also announced notable transactions in the third quarter. The proposal to purchase Dubai Creek Harbour for an overall consideration of Dh7.5 billion, to be paid equally in cash and shares of Emaar Properties PJSC, was approved by the Board of Directors as well as the shareholders in a general meeting.
The Board and shareholders of Emaar Properties have also approved the sale of Namshi to Noon for a total cash consideration of Dh1.2 billion, an excess of Dh127 million over the total investment in Namshi.
“Q3 was another strong period for Emaar as we continue to build on 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,” an Emaar spokesperson said.
Emaar Development, majority-owned by Emaar Properties, recorded property sales of Dh23.2 billion in the first nine months of the year, 11 per cent higher than same period in 2021. Revenue for the period stood at Dh9.3 billion and EBITDA at Dh3.3 billion.
Emaar’s international real estate operations recorded property sales of Dh3.7 billion in the nine-month period and contributed revenue of Dh3.2 billion.
Emaar Malls Management LLC, the wholly owned shopping malls and retail arm of Emaar, recorded 24 per cent growth in revenue in the nine-month period at Dh4 billion. EBITDA was recorded at Dh2.4 billion, 47 per cent higher than the year-ago period.
The hospitality, leisure, entertainment and commercial leasing businesses of Emaar recorded revenue of Dh2.4 billion for the nine-month period, a growth of 78 per cent compared to same period last year.