Emaar Properties on Monday announced continued profitability growth in the first nine months, supported by strong property sales and growth in recurring revenue business results.
In a statement, the Dubai-based real estate giant said it posted revenues of Dh18.9 billion ($5.1 billion) for the period from January to September 2022, supported by an uptrend in the Dubai property market and continued growth in its recurring revenue business.
"EBITDA and net profit for the first nine months of 2022 increased by 47 percent and 124 percent respectively to Dhs8.4 billion ($2.3 billion) and Dhs5.8 billion ($1.6 billion) compared to the same period last year, driven by continued revenue, margin improvement and greater control over costs," the statement said.
EBITDA and net profit increased by 12 percent and 46 percent to Dh2.3 billion ($626 million) and Dh1.5 billion ($408 million), respectively, in July-September 2022 compared to the same period last year, the company added.
Emaar has successfully launched a number of projects in the UAE and international markets.
Led by new project launches and a continued focus on unit sales in projects under construction, Emaar recorded its highest ever group real estate sales of Dh26.9 billion ($7.3 billion) in the first nine months of 2022.Emaar's property sales backlog reached Dh51.9 billion ($14.1 billion), which will be recognized as revenue in the coming years.
Emaar also announced notable strategic transactions in the third quarter that reinforce the company's strategy of focusing on its core pillars and delivering sustained long-term financial returns and shareholder benefits.
The proposed purchase of Dubai Creek Ports for a total consideration of Dh7.5 billion ($2 billion), to be paid equally in cash and shares in Emaar Properties PJSC, was approved by the Board of Directors as well as shareholders at the AGM.
Emaar Properties' board of directors as well as shareholders also approved the sale of Namshi to Noon for a total cash consideration of Dh1.2 billion ($335 million), which is Dh127 million ($35 million) more than the total investment in Namshi.
The third quarter was another strong period for Emaar as we continue to build on the momentum generated in the first half of the year.
The strategic measures taken following the pandemic are seeing results as all divisions of the company benefit from increased consumer confidence and activity, particularly in the real estate market.
As we enter the fourth quarter of 2022, we are confident of further gains in our mall, hotel and retail assets as we move into the winter season and see a boost in tourism and retail.
Emaar's integrated master-planned developments continue to be popular with domestic and international investors, thanks to the company's long-standing reputation for customer focus, design excellence, construction quality and innovation across all of its market segments.
Emaar Development, the UAE-based construction-for-sale real estate development company held by Emaar Properties, maintained strong real estate sales momentum in Dubai in the third quarter, recording Dh23.2 billion ($6.3 billion) in real estate sales in September 2022, 11% higher than the same period in 2021.
Emaar Developments reported revenues of Dh9.3 billion ($2.5 billion) and recorded EBITDA of Dh3.3 billion ($898 million) in the ninth quarter of 2022.
Emaar's international real estate business recorded property sales of Dh3.7 billion ($1.0 billion) in 9M2022 and contributed Dh3.2 billion ($871 million) to revenue, accounting for 17% of Emaar's total revenue.
