Emaar Properties PJSC (DFM: EMAAR) has released its financial results for the first quarter of 2024, which show consistent resilient performance and operational efficiency across its various businesses.
Key accomplishment highlights
Emaar reported revenues of AED 6.7 billion (US$ 1.8 billion) and a net profit before tax of AED 4.3 billion (US$ 1.2 billion), up 16% from the same period last year. The improved performance was driven by Dubai’s increased tourism, retail sales, and sustained real estate demand. Emaar’s focus on improving profit margins and operational efficiencies resulted in higher EBITDA, which increased by 9% to AED 4.4 billion (US$ 1.2 billion) from Q1 2023.
Emaar achieved its highest quarterly group property sales ever in Q1 2024 of AED 13.5 billion (US$ 3.7 billion), representing a strong 47% increase over Q1 2023. Emaar’s revenue backlog from property sales reached AED 78.3 billion (US$ 21.3 billion) in March 2024, a 9% increase from December 2023. This backlog represents future revenue from property sales that will be recognized over the next 4-5 years.
Commenting on the first quarter’s results, Mohamed Alabbar, said: “Emaar started the year with a strong performance, which reflects our focused approach towards sustainable growth and our commitment to customer satisfaction. Our investments have been strategic and result-oriented, leading to solid returns. We are driven by a clear strategy and a pragmatic approach to business, ensuring we add more value for our stakeholders. Our confidence in executing our business plans remains high, and we continue to play a crucial role in the economic landscape of Dubai and beyond.”
UAE Build-To-Sell Property Development
Emaar Development PJSC (DFM: EMAARDEV), a majority-owned subsidiary, successfully launched ten projects across various masterplans and achieved its highest-ever quarterly property sales of AED 12.9 billion (US$ 3.5 billion) in the first quarter of 2024, representing a 50% increase over Q1 2023.
Emaar Development demonstrated strong financial performance in Q1 2024, with revenues of AED 3.5 billion (US$ 953 million) and EBITDA of AED 1.7 billion (US$ 463 million), a 48% increase over Q1 2023. Emaar Properties reported a consolidated revenue of AED 4.1 billion (US$ 1.1 billion) from its UAE property development business, which includes Dubai Creek Harbour.
Emaar announced the launch of two new developments in Q1 2024: The Heights Country Club & Wellness and Grand Polo Club & Resort. These developments cover 140 million square feet of land and have a combined development value of AED 96 billion (US$ 26 billion). These developments are expected to boost Emaar’s sales and profitability in the coming years while also having a significant impact on Dubai’s luxury living experiences.
Emaar has a sales backlog of AED 70.8 billion (US$ 19.3 billion) in the UAE, which will be recognized as revenue in the coming years.
Malls and Commercial Leasing
Emaar’s mall and commercial leasing operations generated AED 1.4 billion (US$ 381 million) in revenue in the first quarter of 2024. During the same period, the portfolio generated an EBITDA of AED 1.1 billion (US$ 299 million). Our tenants achieved high sales in Q1 2024, up approximately 9% from Q1 2023. Emaar Malls Management’s prime assets had an average occupancy of nearly 98% as of March 31, 2023.
Emaar International
Emaar’s international real estate operations reported property sales of AED 625 million (US$ 170 million) and revenue of AED 288 million (US$ 78 million) in the first quarter of 2024. International real estate operations account for 4% of Emaar’s total revenue, with operations in Egypt and India driving the majority of it.
Hospitality, Leisure, and Entertainment
In the first quarter of 2024, Emaar’s hospitality, leisure, and entertainment divisions generated AED 983 million (US$ 268 million) in revenue, a 10% increase over Q1 2023. The tourism industry’s consistent growth and strong domestic spending fueled the expansion. Emaar’s UAE hotels, including those under management, had an average occupancy rate of 82% in the first quarter of 2024.
Recurring Revenue
Emaar’s recurring revenue-generating portfolio, which includes malls, hospitality, leisure, entertainment, and commercial leasing, generated AED 2.3 billion (US$ 626 million) in revenue during the first quarter of 2024. This revenue accounts for 34% of Emaar’s total revenue.
