Emaar’s profit increased by 70% and property sales increased by 15%

 

Emaar's property sales backlog reached AED 71.8 billion(US$ 19.5 billion), to be recognised as revenue in the coming years

 
February 9, 2024 Real Estate
 

Emaar’s profit increased by 70% and property sales increased by 15%
 

Emaar recorded revenues of AED 26.7 billion (US$ 7.3 billion) and net profit of AED 11.6 billion (US$ 3.2 billion) in 2023 achieving growth of 7% and 70% respectively compared to the same period last year. This performance was supported by growth in tourism, a continued upward trend in retail sales, and a consistent increase in real estate demand. Emaar also achieved 63% growth in EBITDA, reaching AED 16 billion (US$ 4.4 billion) during 2023 as compared to 2022.

With a 15% year-over-year growth, Emaar achieved group property sales of AED 40.3 billion (US$ 11 billion) in 2023. Enhanced by property sales during 2023, the group's revenue backlog from property sales reached AED 71.8 billion (US$ 19.5 billion) as of 31 December 2023, indicating positive outlook for revenue recognition in the forthcoming years.

Mohamed Alabbar, founder of Emaar, stated, "Following a prosperous 2023, our achievements are indeed gratifying. The strategic initiatives undertaken in the past two years, coupled with enhancements in consumer confidence and overall business dynamics, especially in the real estate and retail sector, have significantly influenced our company's operations throughout the previous year. With these results, we look forward to a positive performance in our shopping centres, hotels, and property sales in 2024. We remain committed to unveiling innovative projects and unparalleled offerings across all our business divisions."

Emaar's long-standing reputation for customer focus, exceptional design, construction excellence, and innovation across all market segments continues to attract both domestic and international investors.

UAE Build-To-Sell Property Development

Emaar Development PJSC (DFM: EMAARDEV), sustained its property sales momentum in 2023. With the successful launch of 27 new projects across all master plans in the UAE, Emaar Development achieved property sales of AED 37.4 billion (US$ 10.2 billion), reflecting a growth of over 21% compared to 2022.

In 2023, Emaar Development reported revenue of AED 11.9 billion (US$ 3.2 billion) and achieved EBITDA of AED 8 billion (US$ 2.2 billion), marking an 89% growth compared to 2022. Emaar Properties recorded a total revenue of AED 14.4 billion (US$ 3.9 billion) from its property development business in UAE (including Dubai Creek Harbour owned by Emaar Properties).

Shopping Mall, Retail, and Commercial Leasing

Emaar’s shopping malls, retail, and commercial leasing operations recorded revenue of AED 5.8 billion (US$ 1.6 billion) in 2023. During the same period, the portfolio achieved an EBITDA of AED 5 billion (US$ 1.4 billion), marking an increase of 54% over 2022, excluding AED 700 million (US$ 191 million) gain on sale of Namshi in Q1 2023. This performance is attributed to robust growth in tenant sales, which saw an increase of around 21% compared to 2022. Our mall assets achieved an average occupancy of 97% as of 31 December 2023.

Emaar International

Emaar's international real estate operations recorded property sales of AED 2.9 billion (US$ 0.8 billion) in 2023 and recognised revenues totaling AED 3.1 billion (US$ 0.9 billion). The performance of international operations in 2023 was primarily driven by Egypt and India. Emaar’s India operation saw an increase of 4X in the property sales compared to last year driven by new launches. Revenues from international real estate operations represent over 12% of Emaar’s total revenue in 2023.

Hospitality, Leisure, and Entertainment

In 2023, Emaar's hospitality, leisure, and entertainment divisions recorded a growth in revenues of around 20% compared to 2022, reaching AED 3.4 billion (US$ 0.9 billion). This growth was driven by a consistent recovery in the tourism industry, coupled with strong domestic spending. Emaar's UAE hotels increased its average occupancy to 72% and sustained its ADRs level.

Recurring Revenue

Emaar's diverse and sustainable revenue-generating portfolio, encompassing malls, hospitality, leisure, entertainment, and commercial leasing, achieved positive results in 2023. The portfolio recorded revenues totaling AED 9.2 billion (US$ 2.5 billion), showcasing a growth of more than 26% compared to the corresponding period in the previous year (excluding Namshi, sold in February 2023). Revenue from this portfolio constituted over 34% of Emaar's total revenue in 2023

property sales  Emaar  build-to-sell property    

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