Leading property developer Emaar has recorded solid results for the first quarter netting a 43% increase in its profit over last year which soared to AED3.2 billion ($873 million), while its revenue surged to hit AED6.3 billion ($1.7 billion) mainly on the back of increased tourism, retail sales and demand for real estate projects in Dubai.
Announcing the results for the first three months ended March 31, 2023, Emaar said its ebitda hit AED4 billion ($1.1 billion), up 23% over last year, thanks to a good property sales performance and operational excellence across its businesses.
During the first quarter, Emaar's group property sales reached AED9.2 billion ($2.5 billion), up 11% over last year. Emaar's revenue backlog from property sales increased to AED55.7 billion ($15.2 billion), which will be recognised as revenue in the coming years.
On the robust Q1 results, Founder Mohamed Alabbar 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," he stated.
Emaar Development, a majority-owned subsidiary of Emaar, has recorded property sales of AED 8.6 billion ($2.3 billion) in the first quarter of 2023, thus posting a growth of 26 per cent compared to the first quarter of 2022.
Emaar's property development revenue in UAE amounted to AED 3.6 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 AED 627 million ($171 million) and generated revenue of AED 420 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 AED 1.4 billion ($388 million).
Emaar recorded an ebitda of AED 1.7 billion ($474 million) from its shopping mall, retail and commercial leasing portfolio in the first quarter of 2023, up 114 per cent over Q1 2022.
The group's hospitality, leisure and entertainment businesses recorded a revenue of AED884 million ($241 million) in Q1 2023, reflecting a growth of 17 per cent compared to last year.
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 AED 2.3 billion ($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.
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