Emaar Q1 profit jumps 241% to Dh2.23b on sales surge

Mohamed Alabbar, the founder of Emaar Properties, said the developer increased its share in key markets of Egypt and India, capturing the strong increase in demand in these economies



The property giant said the performance is a testament of the continued confidence in the Emaar brand and the overall recovery of the economic activities in Dubai led by the real estate market. — File photo
The property giant said the performance is a testament of the continued confidence in the Emaar brand and the overall recovery of the economic activities in Dubai led by the real estate market. — File photo
by

Issac John

Published: Tue 17 May 2022, 4:25 PM

Global property developer Emaar reported on Tuesday 241 per cent jump in first-quarter net profit to Dh2.239 billion compared to a net profit of Dh657 million in the same 2021 quarter, underpinned by robust property sales.

The property giant said the performance is a testament of the continued confidence in the Emaar brand and the overall recovery of the economic activities in Dubai led by the real estate market.

During Q1 2022, revenue recorded an increase of 12 per cent to Dh6.635 billion from Dh5.921 billion reported in the same 2021 period.

In a statement, the Dubai Financial market-listed company said group property sales have also increased by 17 per cent to Dh8.332 billion compared to the Q1 2021 group property sales of Dh7.115 billion.

Mohamed Alabbar, the founder of Emaar Properties, said the developer increased its share in key markets of Egypt and India, capturing the strong increase in demand in these economies.

“Going forward, Emaar will also continue to capitalize on the very attractive supply and demand dynamics in hospitality and shopping malls, which have recorded a solid performance in the first quarter of this year. This achievement is reinforced by the steps we took last year to strengthen the foundation of the business, including making a significant investment in our talent across all areas,” said Alabbar.

He said Emaar is well-positioned to efficiently implement its clearly defined strategy and generate attractive and sustainable returns for all stakeholders.

“Such success is a mere testament to the UAE’s leading economic position propelling all businesses, ours included, from strength to strength. The future growth and long-term shareholder value will be defined by digital transformation, new product innovation, and market penetration.”

The developer posted a property sales backlog of Dh45.24 billion at the end of Q1 2022, which will be recognised as revenue in the future, reflecting “the strength of Emaar’s financial position to preserve high revenue, profitability and shareholders’ return in the foreseeable future.”

Emaar Development, the UAE build-to-sell property development business, majority-owned by Emaar Properties, maintained strong property sales momentum in Dubai during the first quarter of 2022 recording robust property sales of Dh6.843 billion, an increase of 16 per cent compared to the Q1 2021 property sales of Dh5.883 billion.

Emaar Development reported a net profit of Dh1.050 billion, an increase of 34 per cent compared to the first quarter of 2021, and revenue of Dh3.568 billion. The developer reported its highest ever property sales of Dh27.440 billion in 2021, an increase of 335 per cent compared to 2020. Emaar Development has delivered over 4,700 residential units during 2021 across prime locations, including Dubai Hills Estate, Dubai Creek Harbour, Downtown Dubai, Dubai Marina, Emaar South, and Emaar Beachfront. As of December 2021, Emaar has delivered more than 52,000 residential units, with over 24,500 residences currently under development in the UAE.

Emaar’s international real estate operations continued to improve their operational results and recorded property sales of Dh1.474 billion in Q1 2022 compared to Dh1.211 billion in Q1 2021, a growth of 22 per cent compared to 2021. This highlights the positive property market recovery and the significant interest in Emaar’s international expansions and trusted master developments.

Emaar’s international property development businesses contributed revenue of Dh989 million in Q1 2022 which represents 15 per cent to Emaar’s total revenue, underpinned by successful operations in Egypt and India.

Emaar Malls Management, the shopping malls and retail arm of Emaar Properties, recorded 36 per cent growth in Q1 2022 revenue compared to the same period last year reaching to Dh1.235 billion. Overall net profit for Q1 2022 amounted to Dh635 million which is 136 per cent higher than Q1 2021. Emaar Malls Management assets improved its leasing occupancy levels at 93 per cent in addition to record tenant sales surpassing even 2019 numbers in The Dubai Mall. In Q1 2022, Emaar Malls Management also launched Dubai Hills Mall.

The hospitality, leisure, entertainment, and commercial leasing businesses of Emaar recorded revenue of Dh843 million for Q1 2022, achieving growth of over 120 per cent compared to Q1 2021, with the hotels under Emaar Hospitality Group in UAE, including its managed hotels, boasting average occupancy levels of 80 percent, which is attributed to the robust recovery in the GCC tourism sector.

Emaar Entertainment has launched Adventure Park, the indoor kids play area, and The Storm Coaster, the record-breaking indoor rollercoaster, at the Dubai Hills Mall, in February 2022.

Emaar’s recurring revenue-generating businesses of malls, hospitality, leisure, entertainment, and commercial leasing, together achieved revenue of Dh2.078 billion, recording a growth of over 62 per cent compared to the same period last year, and representing 31 per cent of the Emaar’s total revenue.

— issacjohn@khaleejtimes.com


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