Emaar 9M profit jumps 25% on record sales

Emaar Properties announced on Monday a 25 per cent jump in net profit and its highest-ever property sales of Dh26.146 billion in the first nine months of 2021, which is three times the sales value for the same period of 2020.

The leading property company said in a statement that the impressive results, driven by its UAE development business and complemented by its international operations, underscored investors’ continued confidence in the Emaar brand and its exponential success.

Emaar recorded revenue of Dh19.332 billion during first nine-months of 2021, an increase of 57 per cent over the revenue of Dh12.351 billion during the same 2020 period. Net profit for the first nine months of 2021 stood at Dh2.578 billion, 25 per cent higher than the net profit of Dh2.057 billion during the same period last year.

The property major now has a solid property sales backlog of Dh46.927 billion. “This reflects the strength of Emaar’s financial position and its ability to preserve high revenues, profitability and shareholders’ returns into the foreseeable future,” said the statement.

On a quarter-on-quarter basis, Emaar’s net profit for the third quarter (July to September) 2021 surged 184 per cent to Dh1.018 billion year-on-year. Revenue for Q3 2021 increased 65 per cent to Dh6.832 billion from Dh4.131 billion in 2020 third quarter.

“The resilience of Dubai’s property market is a testament to the UAE’s enduring strength and robust economic performance in 2021,” an Emaar spokesperson said.

Emaar has handed over more than 79,800 residential units in Dubai and key international markets, with more than 25,000 units currently under development in the UAE and 11,000 units in global markets.

Emaar Development, the build-to-sell property development business majority-owned by Emaar Properties, has achieved the highest ever property sales of Dh20.943 billion during 9M 2021, which is around five times the sales achieved during the same period last year. Emaar Development achieved revenue of Dh11.604 billion and net profit of Dh2.384 billion, representing a growth of 63 per cent and 75 per cent, respectively in 9M 2021 compared to the same period last year.

During the third quarter (July-September), Emaar Development recorded property sales of Dh 7.118 billion.

Emaar’s international operations continued to improve their operational results and recorded property sales of Dh5.155 billion in 9M 2021 compared to Dh3.435 billion in 9M 2020, a growth of 50 per cent compared to the same period last year. International businesses recorded 15 per cent revenue growth toDh2.992 billion, underpinned by successful operations in Egypt, India and Pakistan.

Emaar Malls recorded revenue of Dh3.191 billion with a net profit of Dh1.07 billion in the first nine months. Emaar Malls’ assets maintained occupancy levels of 91 per cent. Emaar Malls’ e-commerce fashion and lifestyle platform, Namshi, a wholly-owned subsidiary, recorded sales of Dh1.005 billion during the nine-month period.

The hospitality, leisure, entertainment, and commercial leasing businesses of Emaar recorded revenue of Dh1.545 billion for 9M 2021, marking an increase of 39 per cent over the same period last year.

Emaar’s recurring revenue-generating businesses of malls, hospitality, leisure, entertainment, and commercial leasing together achieved revenues of Dh 4.736 billion, which makes up 24 per cent of the Emaar’s total revenue, said the statement.

— issacjohn@khaleejtimes.com