Net profit group-wide grows by 15% with property sales exceeding $5.4bn and mall occupancy at 96%
Emaar Properties has announced first half (H1) 2023 revenues of US $3.3bn, with net profit growing by 15% compared to the same period last year, reaching $1.3bn. The Dubai-based group added that the H1 results showcase consistent performance and operational efficiency across its various businesses.
Emaar’s consistent performance was driven by the growth in tourism, retail sales, and sustained real estate demand in Dubai. Meanwhile, a focus on improving profit margins and operational efficiencies resulted in achieving higher EBITDA, which grew by 5% to $1.7bn compared to H1 2022.
Emaar achieved H1 2023 group property sales of $5.5bn, a 14% YoY growth. Supported by incremental property sales, the company’s revenue backlog from property sales reached $17.1bn as of 30th June 2023. This backlog represents future revenue from property sales to be recognised over the next few years.
During the period, Emaar has received credit rating upgrades from major rating agencies S&P (BBB), Moody’s (Baa2) and Fitch (BBB), all with a stable outlook. These upgrades reflect Emaar’s financial performance and improved financial position. Overall, these positive indicators point to a better outlook for Emaar’s future.
Mohamed Alabbar, Founder of Emaar said, “Emaar’s recent performance reflects our ongoing commitment to sustained profitable growth and in our focus on meeting the needs of our loyal and new customers. Our investments have resulted in strong returns, driving our growth and improving our operations. We are confident in our ability to continue executing our business strategy and meeting customer demand as we move forward in the year.”
In terms of divisional results, Emaar Development, a majority-owned subsidiary, achieved property sales of $5.2bn during the first half of 2023, reflecting a growth of 25% over H1 2022. The UAE build-to-sell operation reported H1 2023 revenue of $1.7bn and successfully launched 16 new projects in the UAE.
Meanwhile, in H1 2023, Emaar’s shopping mall, retail, and commercial leasing operations reported an 8% growth in revenue compared to the previous year, reaching $844mn. During the same period, the portfolio yielded an EBITDA of $871mn, a 77% increase over H1 2022. This success is credited to robust tenant sales, which rose by approximately 30% compared to H1 2022. Emaar Malls Management’s prime mall assets achieved an impressive occupancy rate of approximately 96%.