Emaar records 43% growth in net Q1-23 profit

Emaar Properties PJSC (DFM: EMAAR) has announced robust Q1 2023 financial results attributed
to ‘good’ property sales performance and operational excellence across its businesses, the property
giant said in a statement today.
Emaar reported revenue of AED6.3 billion (US$ 1.7 billion) in the first quarter of 2023, supported by
increased tourism, retail sales and demand for real estate projects in Dubai. Emaar recorded an
EBITDA and net profit for the first quarter of 2023 of AED 4.0 billion (US$ 1.1 billion) and AED 3.2
billion (US$ 873 million), respectively, which is an increase of 26 per cent and 43 per cent,
respectively, compared to the first quarter to 2022.
In the first quarter of 2023, Emaar’s group property sales reached AED 9.2 billion (US$ 2.5 billion),
an 11 per cent increase compared to Q1 2022. Emaar’s revenue backlog from property sales
increased to AED 55.7 billion (US$ 15.2 billion), which will be recognised as revenue in the coming
Mohamed Alabbar, Founder of Emaar, said: “Emaar’s financial performance during the first quarter
demonstrates our capability to continually enhance our performance through effective management
of its operational efficiencies. As a direct consequence of our enhanced capacity to scale our
operations, we have seen both an increase in EBITDA and a widening of margins. Owing to Emaar’s
unwavering commitment to innovation, talent and operational excellence, the company is in a
position to increase sales, lift profitability, and drive customers happiness and shareholders value.”
Emaar International
During the first quarter of 2023, international real estate operations of Emaar achieved property
sales of AED 627 million (US$ 171 million) and generated revenue of AED 420 million (US$ 114
million), representing 7 per cent of Emaar’s overall revenue. The financial results of our international
operations were primarily driven by the profitable operations in Egypt.
Shopping Mall, Retail and Commercial Leasing
Shopping mall, retail and commercial leasing operations saw a 7 per cent increase in revenue for Q1
2023 compared to the same period in the prior year, reaching AED 1.4 billion (US$ 388 million).
Emaar recorded an EBITDA of AED 1.7 billion (US$ 474 million) from its shopping mall, retail and
commercial leasing portfolio in the first quarter of 2023, representing an increase of 114 per cent
from the same period in 2022. This achievement is attributed to recognising the gain on sale of
Namshi of AED 700 million (US$ 191 million) and improved operational profitability complimented by
high levels of tenant sales which grew by around 30 per cent compared to Q1 2022. Prime mall
assets managed by Emaar Malls Management have reported an occupancy rate of over 95 per cent.
Hospitality, Leisure, and Entertainment.
Emaar’s hospitality, leisure and entertainment businesses recorded a revenue of AED 884 million
(US$ 241 million) in Q1 2023, reflecting a growth of 17 per cent compared to Q1 2022. This
performance was the result of the continuing rebound in tourism and high domestic spending. The
hotels in UAE under the Hospitality arm of Emaar, including managed hotels, achieved average
occupancy of 75 per cent during the first quarter of 2023. Emaar’s diversified portfolio of recurring
revenue-generating businesses, including malls, hospitality, leisure, entertainment, and leasing,
collectively recorded AED 2.3 billion (US$ 629 million) in revenue during Q1 2023, representing an
increase of 11 per cent compared to Q1 2022. Revenues from these businesses constitute 37% of
Emaar’s overall revenue.


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