Emaar recorded strong revenue in the first half of the year of $3.696 billion, an increase of 10%
DUBAI - Emaar Properties PJSC announced that it achieved a significant increase in profitability in the first half of the year, which was facilitated by high real estate sales and the growth of business indicators with constant income.
These indicators indicate continued confidence in the Emaar brand and the overall recovery of Dubai's economy after the pandemic led by the real estate market.
Due to the strong performance of its core real estate development business and in addition to growing regular revenue operations, Emaar recorded high revenue in the first half of the year of 13.575 billion dirhams (3.696 billion US dollars), which is 10 percent more compared to the 1st half of 2021. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the 1st half of 2022 increased by 66 percent to 6.12 billion UAE dirhams (1.664 billion US dollars) compared to the 1st half of 2021 as a result of increased revenue while improving profitability and continuing cost optimization.
The successful launch of Emaar real estate both in the UAE and in international markets, as well as the coordinated focus on sales of projects under construction, led to Emaar achieving record sales of group real estate in the first half of the year in the amount of 17.672 billion dirhams (4.811 billion US dollars), which is 5% more compared to sales in the first in the first half of 2021 in the amount of 16 dirhams.842 billion dollars (4,585 billion US dollars).
In the second quarter of 2022, Emaar recorded a 53 percent increase in EBITDA to 2.932 billion dirhams (US$798 million) compared to EBITDA of 1.922 billion dirhams (US$523 million) for the same period in 2021. Emaar's revenue for the 2nd quarter of 2022 was 6.940 billion dirhams (1.889 billion US dollars), an increase of 8 percent compared to revenue for the 2nd quarter of 2021 of 6.439 billion dirhams (1.753 billion US dollars).
The significant backlog of real estate sales in the amount of 47.982 billion dirhams (13.063 billion US dollars) at the end of the first half of 2022, which will be recognized as revenue in the future, once again underlines Emaar's stable financial position in terms of maintaining high revenues, profitability and shareholder returns for the foreseeable future.
An Emaar representative said: "We achieved strong Emaar results in the second quarter, successfully continuing the momentum achieved in the first quarter of 2022. Thanks to the post-pandemic growth in the real estate market and the strong recovery of our shopping centers, hotel and retail assets, which increased our profit in the second quarter of this year compared to the same period in 2021.
"At the macroeconomic level, Dubai's growing economy and recent changes in areas such as commercial company legislation and visa regulations are driving growth and attracting investment in many sectors, which indirectly increases demand for our products, underpinned by our continued focus on providing high-quality products and services that exceed our customers' expectations."
With an established reputation for outstanding achievements in design, build quality and innovation, Emaar consistently offers first-class experience and lifestyle opportunities in all market segments, and its comprehensive master plan developments continue to be popular with local and international investors.
Emaar's international real estate operations recorded property sales of 2.428 billion dirhams (US$661 million) in the first half of 2022 and generated revenue of 2.068 billion dirhams (US$563 million), representing 15 percent of Emaar's total revenue, mainly due to successful operations in Egypt and India.
With record tenant sales in the first half of 2022 at Dubai Mall exceeding pre-Covid tenant sales in 2019, Emaar Malls Management LLC, a wholly owned shopping mall and retail division of Emaar Properties, recorded a 30 percent increase in revenue in the first half of 2022 compared to the same period last year, reaching 2.661 billion dirhams (US$ 725 million). Emaar Mall Management's EBITDA for the 1st half of the year amounted to 1.644 million dirhams (448 million US dollars), which is 66 percent higher than in the 1st half of 2021. The rental load of Emaar Malls Management assets is 94 percent.
Hospitality, leisure, entertainment and commercial leasing companies Emaar recorded revenue of 1,564 million dirhams (426 million US dollars) for the 1st half of 2022, an increase of more than 93 percent compared to the 1st half of 2021. Emaar hotels in the UAE, including joint and managed hotels, boast an average occupancy rate of 71%, which is further proof that the tourism sector of the Persian Gulf countries is gaining momentum during the recovery period after the pandemic.
Emaar's permanent revenue-generating businesses, such as shopping malls, hospitality, leisure, entertainment and commercial rentals, together achieved revenue in the first half of 2022 of 4,224 billion dirhams (1,150 billion US dollars) and EBITDA of 2,955 billion dirhams (805 million US dollars), recording an increase of 48% and 78%, respectively, compared to the same period last year. by the same period last year. These companies account for 31% and 48% of Emaar's total revenue and EBITDA, respectively.
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