Emaar Properties PJSC (DFM: EMAAR) has released its financial results for the first half of 2023, showcasing consistent performance and operational efficiency across its various businesses.

Key Accomplishment Highlights
Emaar’s recorded half-year 2023 revenues of AED 12.3 billion (US$ 3.3 billion) with net profit growing by 15% compared to same period last year, reaching to AED 4.9 billion (US$ 1.3 billion). The consistent performance was driven by the growth in tourism, retail sales, and sustained real estate demand in Dubai.
Emaar’s focus on improving profit margins and operational efficiencies resulted in achieving higher EBITDA, which grew by 5% to AED 6.4 billion (US$ 1.7 billion) compared to H1 2022.

Emaar achieved H1 2023 group property sales of AED 20.2 billion (US$ 5.5 billion), a 14% YoY growth.
Supported by incremental property sales, the company’s revenue backlog from property sales reached AED 62.8 billion (US$ 17.1 billion) as of 30th June 2023. This backlog represents future revenue from property sales to be recognised over the next few years.

During the period, Emaar has received credit rating upgrades from major rating agencies S&P (BBB), Moody’s (Baa2) and Fitch (BBB), all with a stable outlook. These upgrades reflect Emaar’s financial performance and improved financial position. Overall, these positive indicators point to a better outlook for Emaar’s future.

Mohamed Alabbar, Founder of Emaar, said: “Emaar’s recent performance reflects our ongoing commitment to sustained profitable growth and in our focus on meeting the needs of our loyal and new customers. Our investments have resulted in strong returns, driving our growth and improving our operations. We are confident in our ability to continue executing our business strategy and meeting customer demand as we move forward in the year.”

UAE Build-To-Sell Property Development
Emaar Development PJSC (DFM: EMAARDEV), a majority-owned subsidiary, achieved property sales of AED 19 billion (US$ 5.2 billion) during the first half of 2023, reflecting a growth of 25% over H1 2022.
UAE build-to-sell operation reported H1 2023 revenue of AED 6.3 billion (US$ 1.7 billion) and successfully launched 16 new projects in the UAE. In June 2023, Emaar Development also unveiled yet another master-planned development, “The Oasis”, a luxury lifestyle destination.

Shopping Mall, Retail and Commercial Leasing
In H1 2023, Emaar’s shopping mall, retail, and commercial leasing operations reported an 8% growth in revenue compared to the previous year, reaching AED 3.1 billion (US$ 844 million). During the same period, the portfolio yielded an EBITDA of AED 3.2 billion (US$ 871 million), a 77% increase over H1 2022. This success is credited to robust tenant sales, which rose by approximately 30% compared to H1 2022. Emaar Malls Management’s prime mall assets achieved an impressive occupancy rate of approximately 96%.

Emaar International
Emaar’s international real estate operations reported property sales of AED 1.2 billion (US$ 327 million) and revenues totalling AED 1.3 billion (US$ 354 million) during the first half of 2023. Primarily driven by operations in Egypt and India, revenues from international real estate operations represent 11% of Emaar’s total revenue.

Hospitality, Leisure, and Entertainment
In the first half of 2023, Emaar’s hospitality, leisure, and entertainment divisions generated AED 1.6 billion (US$ 436 million) in revenue, marking an 18% increase from H1 2022. The growth was driven by the steady recovery in the tourism industry and strong domestic spending. Emaar’s UAE hotels, including those under management, reported an average occupancy rate of 70% in the first half of 2023.
During the period, Emaar also announced the opening of its newest hotel, Address Jabal Omar Makkah, featuring around 1,500 keys and conveniently located at the heart of the holy city.

Recurring Revenue
Emaar’s H1 2023 financial results show an 11% increase in recurring revenue compared to H1 2022.
The company’s recurring revenue-generating portfolio, including malls, hospitality, leisure, entertainment, and commercial leasing, collectively generated AED 4.7 billion (US$ 1.3 billion) during H1 2023. This revenue represents 38% of Emaar’s total revenue from these businesses.