DUBAI, 12th August, 2022 (WAM) -- Emaar Properties PJSC announced it has achieved significant increase in first half profitability, underpinned by robust property sales and growth in the performance of recurring revenue businesses.
This performance is testament to the continued confidence in Emaar's brand and overall post-pandemic recovery of Dubai's economy, led by the real estate market.
Led by robust performance of its core property development business, and complemented by growing recurring revenue operations, Emaar recorded strong first half revenue of AED13.575 billion (US$3.696 billion), growth of 10 percent compared to H1 2021. H1 2022 earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 66 percent to AED 6.112 billion (US$1.664 billion) compared to H1 2021 as a result of higher revenue with improving margins and continued cost optimisation.
Successful launch of properties by Emaar, both in the UAE and international markets, and concerted focus on sales of under-construction projects resulted in Emaar achieving record first half group property sales of AED17.672 billion (US$4.811 billion), an increase of 5 percent compared to the H1 2021 sales of AED16.842 billion (US$4.585 billion).
During the second quarter of 2022, Emaar recorded an increase in EBITDA of 53 percent to AED2.932 billion (US$798 million) compared to EBITDA of AED1.922 billion (US$523 million) in the same period of 2021. Emaar's Q2 2022 revenue stood at AED6.940 billion (US$1.889 billion), an increase of 8 percent compared to Q2 2021 revenue of AED6.439 billion (US$1.753 billion).
The strong property sales backlog of AED47.982 billion (US$13.063 billion) at the end of H1 2022, which will be recognised as revenue in the future, further underlines Emaar's robust financial position in preserving high revenue, profitability and shareholders' return in the foreseeable future.
An Emaar spokesperson said, "We have delivered strong second quarter results of Emaar by successfully carrying on the momentum built during the first quarter of 2022. Thanks to the post-pandemic uptick in the real estate market and strong recovery of our mall, hospitality and retail assets which increased our second quarter profit this year, in comparison to the same period in 2021.
"On a macro-economic level, Dubai's growing economy and recent changes in areas such as commercial companies law and visa regulations are driving growth and attracting investment across many sectors, which indirectly increases demand for our products, underpinned by our continued focus on delivering high quality products and experiences that surpass our customers' expectations."
With an established reputation for excellence in design, build quality and innovation, Emaar consistently offers premium experiences and lifestyle opportunities across market segments, and its integrated masterplan developments continues to remain popular with local and international investors.
Emaar's international real estate operations recorded property sales of AED2.428 billion (US$661 million) in H1 2022 and contributed revenue of AED2.068 billion (US$563 million), which represents 15 percent of Emaar's total revenue, primarily driven by successful operations in Egypt and India.
Led by record tenant sales in H1 2022 at The Dubai Mall, surpassing 2019 pre-Covid tenant sales, Emaar Malls Management LLC, the wholly owned shopping malls and retail arm of Emaar Properties, recorded 30 percent growth in H1 2022 revenue compared to same period last year, reaching AED2.661 billion (US$725 million). Emaar Mall Management achieved H1 EBITDA of AED1.644 million (US$448 million), 66 percent higher than H1 2021. Leasing occupancy of Emaar Malls Management's assets stands at 94 percent.
The hospitality, leisure, entertainment and commercial leasing businesses of Emaar recorded revenue of AED1.564 million (US$426 million) for H1 2022, grew over 93 percent compared to H1 2021. Emaar's hotels in UAE, including JV and managed hotels, boasting average occupancy levels of 71 percent, further proof of the GCC's tourism sector going strength to strength in post-pandemic recovery.
Emaar's recurring revenue-generating businesses of malls, hospitality, leisure, entertainment and commercial leasing, together achieved H1 2022 revenue of AED4.224 billion (US$1.150 billion) and EBITDA of AED2.955 billion (US$805 million), recording a growth of 48 percent and 78 percent respectively compared to same period last year. These businesses represents 31 percent and 48 percent of Emaar's total revenue and EBITDA respectively.