- Half-year 2022 revenue increased by 10% to AED 13.575 billion (US$696 billion);
- Malls revenue records 30% growth compared to H1 2021, supported by record tenant sales which surpasses pre-Covid level;
- Hospitality revenue grew by 64% compared to H1 2021, reflecting the tourism sector robust post-pandemic recovery;
- Recorded highest ever H1 UAE property sale of AED 15.244 billion (US$ 4.150 billion), 10% higher than H1 2021; and
- Property sales backlog at AED 47.982 billion (US$ 063 billion), provides strong revenue visibility for the coming years.
Dubai, United Arab Emirates – 12 August, 2022: Emaar Properties PJSC (DFM: EMAAR), announced good growth in first half profitability, underpinned by robust property sales and growth in the performance of recurring revenue businesses. This performance is testament to the continued confidence in Emaar’s brand and overall post-pandemic recovery of Dubai’s economy, led by the real estate market.
Key performance highlights
Led by robust performance of its core property development business, and complemented by growing recurring revenue operations, Emaar recorded strong first half revenue of AED 13.575 billion (US$ 3.696 billion), growth of 10 per cent compared to H1 2021. H1 2022 EBITDA increased by 66 per cent to AED 6.112 billion (US$ 1.664 billion) compared to H1 2021 as a result of higher revenue with improving margins and continued cost optimization.
Successful launch of properties by Emaar, both in the UAE and international markets, and concerted focus on sales of under-construction projects resulted in Emaar achieving record first half group property sales of AED 17.672 billion (US$ 4.811 billion), an increase of 5 per cent compared to the H1 2021 sales of AED 16.842 billion (US$ 4.585 billion).
During the second quarter of 2022, Emaar recorded an increase in EBITDA of 53 per cent to AED 2.932 billion (US$ 798 million) compared to EBITDA of AED 1.922 billion (US$ 523 million) in the same period of 2021. Emaar’s Q2 2022 revenue stood at AED 6.940 billion (US$ 1.889 billion), an increase of 8 per cent compared to Q2 2021 revenue of AED 6.439 billion (US$ 1.753 billion).
The strong property sales backlog of AED 47.982 billion (US$ 13.063 billion) at the end of H1 2022, which will be recognised as revenue in the future, further underlines Emaar’s robust financial position in preserving high revenue, profitability and shareholders’ return in the foreseeable future.
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.”
With an established reputation for excellence in design, build quality and innovation, Emaar consistently offers premium experiences and lifestyle opportunities across market segments; and its integrated masterplan developments continues to remain popular with local and international investors.
Emaar Development PJSC (DFM: EMAARDEV), 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 of AED 15.216 billion (US$ 4.143 billion), 10% higher than same period in 2021. Emaar Development reported H1 2022 revenue of AED 7.282 billion (US$ 1.983 billion) and recorded 15 per cent growth in EBITDA to AED 2.564 billion (US$ 698 million).
Emaar’s international real estate operations recorded property sales of AED 2.428 billion (US$ 661 million) in H1 2022 and contributed revenue of AED 2.068 billion (US$ 563 million) 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 LLC, 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 AED 2.661 billion (US$ 725 million). Emaar Mall Management achieved H1 EBITDA of AED 1.644 million (US$ 448 million), 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 17 February 2022, 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 & Entertainment
The hospitality, leisure, entertainment and commercial leasing businesses of Emaar recorded revenue of AED 1.564 million (US$ 426 million) for H1 2022, grew over 93 per cent compared to H1 2021. Emaar’s hotels in UAE, including JV and managed hotels, boasting average occupancy levels of 71 per cent, further proof of the GCC’s tourism sector going strength to strength in post-pandemic recovery.
Emaar’s recurring revenue-generating businesses of malls, hospitality, leisure, entertainment and commercial leasing, together achieved H1 2022 revenue of AED 4.224 billion (US$ 1.150 billion) and EBITDA of AED 2.955 billion (US$ 805 million), 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.
ESG and aligning to SDGs
Emaar, one of the largest real estate developers in the MENA region, is committed to the environment, social and governance areas and believe that responsible development can build a better future. We are in the process of establishing our Sustainability Strategy which will include establishing a strategy for reducing embodied carbon; developing the action plan for further reducing operational carbon; exploring greater use of recycled materials and alternatives; and strengthening our governance framework to prioritise and monitor ESG. Through our new strategies, we aim to take our whole portfolio to net zero carbon over time in line with UAE’s Net Zero 2050 strategic initiative, and keep growing social value and wellbeing in the communities where we operate.
Note to Editors:
About Emaar Properties
Emaar Properties PJSC, listed on the Dubai Financial Market, is a global property developer and provider of premium lifestyles, with a significant presence in the Middle East, North Africa and Asia. One of the world’s largest real estate companies, Emaar has a land bank of 1.7 billion sq. ft. in the UAE and key international markets.
With a proven track-record in delivery, Emaar has delivered over 86,200 residential units in Dubai and other global markets since 2002. Emaar has strong recurring revenue-generating assets with over 1,300,000 square meters of leasing revenue-generating assets and 33 hotels and resorts with 7,470 rooms (includes owned as well as managed hotels). Today, 46 percent of Emaar’s revenue is from its shopping malls & retail, hospitality & leisure and international subsidiaries.
Burj Khalifa, a global icon, The Dubai Mall, the world’s most-visited retail and lifestyle destination, and The Dubai Fountain, the world’s largest performing fountain, are among Emaar’s trophy destinations.
For more information:
Phone Number: +971 58 176 3622