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In The First Nine Months Of 2022, EBITDA And Net Profit Both Increased By 47% And 124%, respectively.
Monday saw a continued increase in the first nine-month profitability, according to Emaar Properties. backed by robust real estate sales and enhancements in the operation of companies that bring in recurring income.
The property tycoon with headquarters in Dubai said in a statement that it earned Dh18.9 billion ($5.1 billion) in revenue. Between January and September 2022, underpinned by the strengthening Dubai property market and the ongoing expansion of recurring revenue businesses.
The statement reads: “Sustained revenue, improved margins, and greater cost control contributed to EBITDA. In addition, net profit in the first nine months of 2022 increased by 47% and 124%. Compared to the same time last year, these amounts increased to Dh8.4 billion ($2.3 billion) and Dh5.8 billion ($1.6 billion), respectively.
comparing the quarter from July to September 2022 to the same period the year before. EBITDA and net profit increased to Dh2.3 billion ($626 million) and Dh1.5 billion ($408 million), respectively, by 11% and 46%.
New Initiatives Started
Emaar in the UAE as well as other markets successfully launched many projects. Emaar has achieved its highest-ever group property sales of Dh26.9 billion ($7.3 billion) during the first nine months of 2022. Driven by the introduction of new projects and a continued focus on the sale of units in ongoing projects. Emaar’s backlog in real estate sales. Which is currently Dh51.9 billion ($14.1 billion), will be recognized as revenue in the upcoming years.
In the third quarter, Emaar also disclosed significant strategic deals that support the company’s strategy of concentrating. On its cornerstone business operations and delivering consistent long-term financial return and shareholder benefits.
The board of directors as well as the shareholders in the general meeting approved the proposal to buy Dubai Creek Harbour. For an overall consideration of Dh7.5 billion ($2 billion), to be paid equally in cash and shares of Emaar Properties PJSC.
The transfer of Namshi to Noon for a sum of Dh1.2 billion ($335 million) in cash. Which represents an excess of Dh127 million ($35 million) over the total investment in Namshi, and has been approved by the board and shareholders of Emaar Properties.
“Q3 was another good quarter for Emaar as we continue to build on the momentum gained in the first half of the year,” a representative for the company stated. All areas of the business are benefiting from enhanced customer confidence and activity. Especially in the real estate sector, because of the strategic measures put in place in the wake of the epidemic. As we head into the winter months and see a boost to the tourism and retail sectors, we are confident. That our malls, hospitality, and retail assets will experience an additional uplift as we move into Q4 2022.
Development Emaar
Due to the company’s longstanding reputation for customer focus, superior design, construction quality, and innovation across all of its market segments. Emaar’s integrated masterplan developments continue to be popular with both domestic and foreign investors.
Emaar Development is a majority-owned subsidiary of Emaar Properties and a build-to-sell property developer in the UAE. Continued to see robust property sales in Dubai in Q3 and reported a 9M 2022 property sale of Dh23.2 billion ($6.3 billion). An increase of 11% over the same period in 2021. Emaar Development recorded an EBITDA of Dh3.3 billion ($898 million) and 9M 2022 sales of Dh9.3 billion ($2.5 billion).
International Emaar
For the first nine months of 2022, Emaar’s overseas real estate divisions sold property worth Dh3.7 billion ($1 billion). In addition, generated Dh3.2 billion ($871 million), or 17% of the company’s overall revenue. Successful operations in Egypt and India were the main drivers of the effectiveness of international operations.
Management of Emaar Mall
Emaar Malls Management LLC, the fully owned shopping center and retail division of Emaar saw a 24% increase. In 9-month sales in 2022 over the same period in the previous year, totaling Dh4 billion ($1.1 billion). Emaar Mall Management increased its EBITDA for the first nine months of 2022 by 47% to Dh2.4 billion ($653 million). Record tenant sales were made across the board for Emaar Mall Management’s assets in the first nine months of 2022. Surpassing pre-Covid tenant sales for 2019. Emaar Malls Management’s assets have a 96% leasing occupancy rate.
On February 17, 2022, Dubai Hills Mall, which offers an unrivaled selection of dining, entertainment, and retail concepts, was officially opened. Since then, it has quickly established itself as a major lifestyle destination. The Dubai Hills Mall was leased as of September 30, 2022.
Tourism, Recreation, and Entertainment
Emaar’s hospitality, leisure, entertainment, and commercial leasing businesses generated Dh2.4 billion ($653 million) in revenue for the first nine months of 2022, an increase of 78% over the same period in the previous year. Emaar’s hotels in the UAE, including joint ventures and managed hotels, recorded strong ADRs with 67 percent occupancy rates on average during the first nine months of 2022, adding to the evidence of the country’s strong post-pandemic recovery.
Malls, hospitality, leisure, entertainment, and commercial leasing. Which together generate recurring revenue for Emaar, recorded 9M 2022 revenue of Dh6.3 billion ($1.7 billion). A growth of 40% over the same period in 2017. These companies account for 33% of Emaar’s total revenue.
KEY LESSONS
- Emaar has a backlog of property transactions totaling Dh51.9 billion ($14.1 billion). Which will be recognized as revenue in the coming years.
- Malls’ revenue increased by 24% over the same period in 2021, driven by tenant sales records that surpass pre-Covid levels.
- Hotel revenue increased by 48% from the same period in 2021 to this year, demonstrating the tourism industry’s strong post-pandemic recovery.
- Acquiring Dubai Creek Harbour for Dh7.5 billion ($2 billion). Which will be split equally between cash and stock and offers future profit potential in a highly sought-after region of Dubai
- The sale of Namshi for Dh1.2 billion ($335 million) was more than the total investment of Dh127 million ($35 million).
