Listed on the Dubai Financial Market (DFM: EMAAR), Emaar Properties PJSC announced significant quarterly profit growth thanks to strong real estate sales and a significant improvement in the performance of recurring income projects. This achievement reflects the continued confidence in the Emaar brand and the overall recovery of economic activity in Dubai, particularly the real estate market.
Key performance indicators
During the first quarter of 2022, Emaar recorded a 241% increase in net profit to reach AED 2.239 billion ($ 610 million), compared to AED 657 million ($ 179 million) in the first quarter of 2021. K1 2022 Revenue of AED 6.635 billion (USD 1.806 billion), an increase of 12% compared to AED 5.921 billion (USD 1.612 billion) in the first quarter of 2021.
The group’s real estate sales increased by 17% to AED 8.332 billion (US $ 2.268 billion) compared to AED 7.115 billion (US $ 1.937 billion) in the first quarter of 2021.
While Emaar’s cumulative sales volume of ongoing projects amounted to 45.240 billion UAE dirhams ($ 12.317 billion) at the end of the first quarter of 2022, its revenue will be calculated in the coming years, reflecting Emaar’s strong financial position reflects to ensure high income, profitability and returns for shareholders in the foreseeable future.
Commenting on this topic, Mohamed Alabbar, founder of Emaar Properties, said: “Emaar has succeeded in increasing its share of key markets in Egypt and India, based on the sharp rise in demand within these two economies. It will continue to benefit from the lucrative supply and demand dynamics in the shopping malls and hospitality sectors, which recorded a strong performance in the first quarter of the year. This achievement was further enhanced by the steps the company took last year to support its strong foundations, including the active investment in talent in all areas. Today, Emaar is in a position to implement its strategy effectively and ensure profitable and sustainable returns for all stakeholders. This success confirms the leading economic position of the UAE, which encourages all businesses, including us, to achieve further growth, as future growth and long-term value for shareholders will be linked to digital transformation, innovation of new products and market penetration. ”
Emaar has always been eager to set new standards in the design sector, construction quality and innovation, with the aim of continuing to provide excellent experiences and opportunities to improve lifestyles in various market sectors. As his projects continue to attract the attention of investors from home and abroad.
Emaar Development PJSC, the leading developer of ready-to-sell properties in the UAE listed on the Dubai Financial Market (DFM: EMAARDEV) and majority owned by Emaar Properties PJSC, has its strong momentum in real estate sales in Dubai retained during the first term. (January-March) of 2022, with strong property sales of AED 6.843 billion (US $ 1.863 billion), an increase of 16% compared to AED 5.883 billion (US $ 1.602 billion) in the first quarter of 2021. Emaar Development reports net profit of AED 1,050 billion (US $ 286 million), an increase of 34% compared to the first quarter of 2021, and revenue of AED 3,568 billion (US $ 971 million) generated.
Emaar’s international real estate operations continued to improve its operating results and property sales of AED 1,474 billion (US $ 401 million) were recorded in the first quarter of 2022 compared to AED 1,211 billion (US $ 330 million) in the first quarter of 2021. This is a increase of 22% compared to 2021. This confirms the positive recovery of the real estate market together with the great interest in Emaar’s international expansions and its pioneering work and reliable projects.
The company’s international real estate development business also generated AED989 million ($ 269 million) in revenue in the first quarter of 2022, representing 15% of Emaar’s total revenue, thanks to successful operations in Egypt and India.
Emaar Malls Management
Emaar Malls Management LLC, the developer arm of Emaar Malls and retail assets, recorded a 36% growth in revenue for the first quarter of 2022 compared to the same period last year to reach AED 1.235 billion ($ 336 million). Gross net profit was AED 635 million ($ 173 million) during the first quarter of 2022, which is 136 percent higher than the first quarter of 2021. Emaar Malls Management’s assets contributed to a 93% improvement in rental occupancy levels, in addition to Record tenant sales surpasses 2019 results at The Dubai Mall.
The company also opened Dubai Hills Mall in the first quarter of 2022, which quickly became a popular and preferred destination in the emirate.In less than two months, Dubai Hills Mall welcomed more than 231 tenants of international brands and local concepts.
Emaar Hospitality, Recreation and Recreation
Emaar’s hospitality, leisure, entertainment and commercial rental business generated revenue of 843 million dirhams (US $ 230 million) during the first quarter of 2022, growing by more than 120% compared to the first quarter of 2021, with the registration of hotels belonging to the Emaar Hospitality Group in the country The UAE, including managed hotels, is on average 80% occupancy levels, due to the strong recovery in the tourism sector within the GCC.
Emaar Entertainment launched Adventure Park, an indoor children’s play destination, and The Storm Coaster, a record-breaking indoor rollercoaster, at Dubai Hills Mall, in February 2022.
The total revenue from projects dependent on recurring revenue from shopping malls, hospitality, entertainment and commercial leasing amounted to 2.078 billion dirhams ($ 566 million), registering a growth rate of more than 62% compared to the same period last year, which represents 31% of the total revenue Construction.