Emaar Properties has announced robust Q1 2023 financial results attributed to good property sales performance and operational excellence across its businesses.

Emaar reported revenue of Dhs6.3 billion ($1.7 billion) in the first quarter of 2023, supported by increased tourism, retail sales and demand for real estate projects in Dubai. Emaar recorded an EBITDA and net profit for the first quarter of 2023 of Dhs4.0 billion ($1.1 billion) and Dhs3.2 billion ($873 million), respectively, which is an increase of 26 per cent and 43 per cent, respectively, compared to the first quarter to 2022.

In the first quarter of 2023, Emaar’s group property sales reached Dhs9.2 billion ($2.5 billion), an 11 per cent increase compared to Q1 2022. Emaar’s revenue backlog from property sales increased to Dhs55.7 billion ($15.2 billion), which will be recognised as revenue in the coming years.

Mohamed Alabbar, Founder of Emaar, said: “Emaar’s financial performance during the first quarter demonstrates our capability to continually enhance our performance through effective management of its operational efficiencies. As a direct consequence of our enhanced capacity to scale our operations, we have seen both an increase in EBITDA and a widening of margins. Owing to Emaar’s unwavering commitment to innovation, talent and operational excellence, the company is in a position to increase sales, lift profitability, and drive customers happiness and shareholders value.”

Emaar Development: Emaar Development, a majority-owned subsidiary of Emaar, has recorded property sales of Dhs8.6 billion (US$ 2.3 billion) in the first quarter of 2023, a growth of 26 per cent compared to the first quarter of 2022. Emaar’s property development revenue in UAE amounted to Dhs3.6 billion ($ 970 million) in the first quarter of 2023. We successfully launched seven new projects in the UAE during Q1 2023.

During the first quarter of 2023, international real estate operations of Emaar achieved property sales of Dhs627 million ($171 million) and generated revenue of Dhs420 million ($114 million), representing 7 per cent of Emaar’s overall revenue. The financial results of our international operations were primarily driven by the profitable operations in Egypt.

 Shopping mall, retail and commercial leasing operations saw a 7 per cent increase in revenue for Q1 2023 compared to the same period in the prior year, reaching Dhs1.4 billion ($388 million). Emaar recorded an EBITDA of Dhs1.7 billion ($474 million) from its shopping mall, retail and commercial leasing portfolio in the first quarter of 2023, representing an increase of 114 per cent from the same period in 2022. This achievement is attributed to recognising the gain on sale of Namshi of Dhs700 million ($191 million) and improved operational profitability complimented by high levels of tenant sales which grew by around 30 per cent compared to Q1 2022. Prime mall assets managed by Emaar Malls Management have reported an occupancy rate of over 95 per cent.

Emaar’s hospitality, leisure and entertainment businesses recorded a revenue of Dhs884 million (US$ 241 million) in Q1 2023, reflecting a growth of 17 per cent compared to Q1 2022. This performance was the result of the continuing rebound in tourism and high domestic spending. The hotels in UAE under the Hospitality arm of Emaar, including managed hotels, achieved average occupancy of 75 per cent during the first quarter of 2023.

Emaar’s diversified portfolio of recurring revenue-generating businesses, including malls, hospitality, leisure, entertainment, and leasing, collectively recorded Dhs2.3 billion (US$ 629 million) in revenue during Q1 2023, representing an increase of 11 per cent compared to Q1 2022. Revenues from these businesses constitute 37% of Emaar’s overall revenue.

Emaar Properties PJSC, listed on the Dubai Financial Market, is a global property developer and provider of premium lifestyles, with a significant presence in the Middle East, North Africa and Asia. One of the world’s largest real estate companies, Emaar has a land bank of 1.7 billion sq. ft. in the UAE and key international markets.

With a proven track-record in delivery, Emaar has delivered over 94,000 residential units in Dubai and other global markets since 2002. Emaar has strong recurring revenue-generating assets with over 1,300,000 square meters of leasing revenue-generating assets and 37 hotels and resorts with 8,134 rooms (includes owned as well as managed hotels). Today, 37 percent of Emaar’s revenue is from its shopping malls & retail, hospitality & leisure and international subsidiaries.