Leading Dubai developer Emaar Properties has reported continued improvement in its property sales which hit a record AED35.1 billion ($9.5 billion) in addition to growth in profitability and marked improvement in the performance of recurring revenue businesses in 2022.
Announcing the results for the 12-month period ended December 31, 2022, Emaar said its net profit surged by 80% to hit AED6.8 billion ($1.9 billion), while its ebitda for the period hit AED9.8 billion ($2.7 billion), up 18% over the previous year, as a result of sustained revenue,improved margins, and continued control over costs.
The leading developer recorded a revenue of AED24.9 billion ($6.8 billion) in 2022, supported by the continuous strengthening of the Dubai real estate market and growth achieved by the recurring revenue businesses due to the rebound of global tourism.
Emaar’s group property sales in 2022 reached AED35.1 billion ($9.5 billion), primarily driven by new project launches. Its backlog of property sales has reached AED53.2 billion ($14.5 billion), which will be recognised as revenue in the coming years.
In 2022, Emaar completed the acquisition of Dubai Creek Harbour for an overall consideration of AED7.5 billion ($2 billion).
Mohamed Alabbar, Founder of Emaar, said: “After a successful 2022, we are very pleased with our accomplishments. Improvements in consumer confidence and overall business activity, especially in the real estate market, have benefited all the company’s operations over the past year, thanks to the strategic measures taken over the past two years.”
“Given these remarkable outcomes, we expect to see strong performance by our shopping centers, hotels, and property sales in 2023, as we continue to deliver cutting-edge projects and unparalleled offerings across all of our business units,” he noted.
Emaar’s enduring reputation for customer-centricity, superior design, construction quality, and innovation across all its market segments continues to appeal to both domestic and international investors, he added.
On the performace of Emaar Development, the UAE build-to-sell property development business majority-owned by Emaar Properties, Alabbar said it had maintained strong property sales momentum in Dubai in 2022, recording AED30.7 billion ($8.4 billion) in property sales, a 12 per cent increase over 2021.
Emaar Development reported AED11.5 billion ($3.1 billion) in revenue and AED4.2 billion ($1.2 billion) in ebitda.
Emaar’s international real estate operations recorded AED4.3 billion ($1.2 billion) in property sales in 2022 and AED4.2 billion ($1.1 billion) in revenue, representing 17 per cent of Emaar’s total revenue. The performance of international operations was led by successful operations in Egypt and India.
On the results of its wholly-owned shopping malls and retail division Emaar Malls Management, Alabbar said it had witnessed an 8% jump in revenue for 2022 compared to the previous year, thus reaching AED5.4 billion ($1.5 billion).
Emaar Malls Management achieved an ebitda of AED3.1 billion ($836 million) in 2022, thus registering an increase of 21% from 2021, with tenant sales surpassing pre-Covid 19 levels. The occupancy rate of Dubai Mall, Emaar Malls Management’s prime asset, stood at 97%.
Emaar pointed out that its hospitality, leisure, entertainment and commercial leasing businesses did well, generating AED3.4 billion ($929 million) in revenue last year, thus registering an increase of 57 per cent compared to 2021.
In 2022, Emaar said its hotels in the UAE achieved strong performance led by significant growth in ADRs and achieving average occupancy rates of 69 per cent, driven by a rebound in global tourism and supported by global events like Expo 2020 and FIFA World Cup.
Emaar’s recurring revenue-generating businesses of malls, hospitality, leisure, entertainment, and commercial leasing collectively generated AED8.8 billion ($2.4 billion) in revenue in 2022, up 23% over the previous year. These businesses represent 36% of Emaar’s total revenue, it added.