Emaar Properties has seen its first-quarter (Q1) net profit jump 43% to AED3.2 billion ($873 million) on the back of good property sales performance and operational excellence across its businesses.
Emaar reported revenue of AED6.3 billion, supported by increased tourism, retail sales and demand for real estate projects in Dubai. Emaar recorded an EBITDA of AED4.0 billion ($1.1 billion), which is an increase of 26% compared to the first quarter to 2022.
Emaar's group property sales reached AED9.2 billion, a 11% increase compared to Q1 2022. Emaar's revenue backlog from property sales increased to AED55.7 billion, which will be recognised as revenue in the coming years.
Mohamed Alabbar, Founder of Emaar, 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."
UAE Build-To-Sell Property Development
Emaar Development, a majority-owned subsidiary of Emaar, has recorded property sales of AED8.6 billion in the first quarter of 2023, a growth of 26% compared to the first quarter of 2022. Emaar's property development revenue in UAE amounted to AED3.6 billion in the first quarter of 2023. The company 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 AED627 million and generated revenue of AED420 million, representing 7% of Emaar's overall revenue. The financial results of its international operations were primarily driven by the profitable operations in Egypt.
Shopping Mall, Retail and Commercial Leasing
Shopping mall, retail and commercial leasing operations saw a 7% increase in revenue for Q1 2023 compared to the same period in the prior year, reaching AED1.4 billion. Emaar recorded an EBITDA of AED1.7 billion from its shopping mall, retail and commercial leasing portfolio in the first quarter of 2023, representing an increase of 114% from the same period in 2022. This achievement is attributed to recognising the gain on sale of Namshi of AED700 million and improved operational profitability complemented by high levels of tenant sales which grew by around 30% compared to Q1 2022. Prime mall assets managed by Emaar Malls Management have reported an occupancy rate of over 95%.
Hospitality, Leisure, and Entertainment
Emaar's hospitality, leisure and entertainment businesses recorded a revenue of AED884 million in Q1 2023, reflecting a growth of 17% compared to Q1 2022. 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% during the first quarter of 2023.
Emaar's diversified portfolio of recurring revenue-generating businesses, including malls, hospitality, leisure, entertainment, and leasing, collectively recorded AED2.3 billion in revenue during Q1 2023, representing an increase of 11% compared to Q1 2022. Revenues from these businesses constitute 37% of Emaar's overall revenue.-- TradeArabia News Service