UAE’s Emaar reports robust H1 2022 revenue of Dhs13.575bn
Emaar’s hospitality division saw its revenue grow by 64 per cent compared to H1 2021, reflecting the tourism sector’s robust post-pandemic recovery
Emaar Properties announced it had a profitable first half, underpinned by robust property sales and growth in the performance of recurring revenue businesses.
Led by the strong performance of its core property development business, and complemented by growing recurring revenue operations, Emaar recorded a robust first half revenue of Dhs13.575bn ($3.696bn), a growth of 10 per cent compared to H1 2021.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 66 per cent to Dhs6.112bn ($1.664bn) compared to H1 2021, as a result of higher revenue with improving margins and continued cost optimisation.
The successful launch of properties by Emaar, both in the UAE and international markets, and focus on sales of under-construction projects resulted in Emaar achieving record first half group property sales of Dhs17.672bn ($4.811bn), an increase of 5 per cent compared to the H1 2021 sales of Dhs16.842bn ($4.585bn).
During the second quarter of 2022, Emaar recorded an increase in EBITDA of 53 per cent to Dhs2.932bn ($798m) compared to EBITDA of Dhs1.922bn ($523m) in the same period of 2021.
Emaar’s Q2 2022 revenue stood at Dhs6.940bn ($1.889bn), an increase of 8 per cent compared to Q2 2021 revenue of Dhs6.439bn ($1.753bn).
The strong property sales backlog of Dhs47.982bn ($13.063bn) at the end of H1 2022, reflected Emaar’s robust financial position.
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. We are continuing to reap the benefits of long-term investment in human talent we made last year across all aspects of our business, and Emaar is again on track to generate attractive and sustainable returns for all stakeholders.”
“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.”
Emaar Development: Emaar Development, the UAE build-to-sell property development business, majority-owned by Emaar Properties, maintained strong property sales momentum in Dubai, recording highest ever property sales in H1 at Dhs15.216bn ($4.143bn), 10 per cent higher than same period in 2021. Emaar Development reported H1 2022 revenue of Dhs7.282bn ($1.983bn) and recorded 15 per cent growth in EBITDA to Dhs2.564bn ($698m).
Emaar International: Emaar’s international real estate operations recorded property sales of Dhs2.428bn ($661m) in H1 2022 and contributed revenue of Dhs2.068bn ($563m) which represents 15 per cent of Emaar’s total revenue, primarily driven by successful operations in Egypt and India.
Emaar Malls Management: Led by record tenant sales in H1 2022 at The Dubai Mall, surpassing 2019 pre-Covid tenant sales, Emaar Malls Management, the wholly owned shopping malls and retail arm of Emaar Properties, recorded 30 per cent growth in H1 2022 revenue compared to same period last year, reaching Dhs2.661bn ($725m). Emaar Mall Management achieved H1 EBITDA of Dhs1.644m ($448m), 66 per cent higher than H1 2021. Leasing occupancy of Emaar Malls Management’s assets stands at 94 per cent.
Dubai Hills Mall, launched on February 17, brings an array of world-class shopping, leisure and entertainment brand portfolio and has quickly become a beloved and iconic lifestyle destination in the city. As at the end of H1 2022, the leasing occupancy was 84 per cent consisting of both international brands and home-grown concepts.
Hospitality, leisure and entertainment: The hospitality, leisure, entertainment and commercial leasing businesses of Emaar recorded revenue of Dhs1.564m ($426m) for H1 2022, grew over 93 per cent compared to H1 2021. Emaar’s hotels in UAE, including JV and managed hotels, boasted average occupancy levels of 71 per cent.
Emaar’s recurring revenue-generating businesses of malls, hospitality, leisure, entertainment and commercial leasing, together achieved H1 2022 revenue of Dhs4.224bn ($1.150bn) and EBITDA of Dhs2.955bn ($805m), recording a growth of 48 per cent and 78 per cent respectively compared to same period last year. These businesses represents 31 per cent and 48 per cent of Emaar’s total revenue and EBITDA respectively.