Driven by Operational Effectiveness and Performance
Emaar’s Properties disclosed that its first quarter of 2023 revenues totalled AED12.3 billion ($3.3 billion). The developer in Dubai made AED4.9 billion ($1.3 billion) as a result of the exceptional success.
Emaar stated in a statement that its first-half milestone was a result of steady performance and operational effectiveness across all of its businesses.
Recurring Income Emaar’s Properties
In addition, recurring revenue increased by 11% in H1 2023 compared to H1 2022 according to Emaar’s financial reports.
Malls, hotels, leisure, entertainment, and commercial leasing were all part of its portfolio of recurring revenue-generating activities that produced AED4.7 billion in the first half. 38 percent of Emaar’s overall revenue from these operations is represented by this revenue.
Highlights of Performance
Emaar’s growth was largely attributed to its retail and tourism industries. This was also tremendously helped by Dubai’s ongoing real estate demand.
Emaar increased their EBITDA by concentrating on increasing profit margins and operational effectiveness. It increased from H1 2022 by 5% to AED6.4 billion ($1.7 billion).
Emaar, meanwhile, saw a 14% year-over-year (YoY) increase in H1 2023 group property sales, totalling AED20.2 billion ($5.5 billion).
As of June 30, 2023, the company’s revenue backlog from property sales has increased to AED62.8 billion ($17.1 billion) thanks to more property sales. Future property sales revenue that will be recognised over the following few years is represented by this backlog.
Major rating agencies have upgraded Emaar’s credit rating as a result of its steady performance. For Emaar, the outlook was steady according to S&P (BBB), Moody’s (Baa2), and Fitch (BBB). Emaar’s better financial condition and financial performance are reflected in these upgrades. Overall, these encouraging signs suggest a more promising future for Emaar.
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,” stated Mohamed Alabbar, the company’s founder. Strong returns on our investments have fueled our expansion and enhanced our operations. As the year progresses, we are confident in our capacity to keep carrying out our business strategy and satisfying client demand.
Commercial Centres, Retail
Shopping mall, retail, and commercial leasing businesses at Emaar recorded an 8% increase in revenue over the same period last year, totalling AED3.1 bn ($844 million).
The portfolio generated $871 million in EBITDA during the same time frame, a 77 percent rise over H1 2022. Emaar attributes this achievement to strong tenant sales, which increased by around 30% from H1 2022 to H1 2023. Additionally, the premier mall properties managed by Emaar Malls Management recorded an exceptional occupancy rate of roughly 96 percent.
Hospitality, Amusement, and Leisure
Meanwhile, Emaar’s hotel, leisure, and entertainment businesses brought approximately AED1.6 billion in revenue, an increase of 18% over H1 2022. The tourism sector’s steady rebound and robust domestic consumption were the main drivers of the development. Additionally, the first half of 2023 saw an average occupancy rate of 70% at Emaar’s hotels in the UAE, including those that are managed.
Additionally, Emaar announced the debut of Address Jabal Omar Makkah, its newest hotel, which has around 1,500 keys and is conveniently situated in the middle of the holy city.
