Emaar Properties reported a 26 per cent increase in first-half net profit to Dh11.15 billion, as revenue rose 21 per cent and property sales remained strong across its development portfolio.
Revenue for the six months ended June 30 increased to Dh23.9 billion, from Dh19.8 billion a year earlier, while EBITDA rose 24 per cent to Dh12.9 billion. Net profit before tax increased 23 per cent to Dh12.8 billion.
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The company recorded property sales of Dh26.6 billion during the first half, while its revenue backlog from property sales reached Dh164.9 billion, up 13 per cent year-on-year.
Emaar said the results reflected contributions from property development, retail and commercial leasing, recurring income businesses and international operations.
UAE property development revenue rises 30%
Emaar’s UAE build-to-sell business, led by Emaar Development, recorded property sales of Dh22.4 billion during the period.
Emaar Development’s revenue rose 34 per cent to Dh13.3 billion, while net profit before tax increased 41 per cent to Dh7.8 billion.
Including other UAE development operations such as Dubai Creek Harbour, consolidated revenue from UAE property development increased 30 per cent to Dh17.7 billion.
The UAE development revenue backlog stood at Dh135.7 billion at the end of June, up 6 per cent from a year earlier.
During the first half, Emaar launched 11 projects across Emaar South, Dubai Hills Estate, The Heights Country Club, The Oasis, Rashid Yachts & Marina and Expo Living.
The company also announced a new Dh200 billion masterplan, adding to its long-term development pipeline.
Mohamed Alabbar, founder of Emaar, said the company’s first-half performance reflected disciplined execution and a long-term approach.
He said Dubai’s continued growth was creating opportunities for Emaar to expand while maintaining its focus on quality, innovation and operational performance.
Malls and leasing revenue grows 9%
Emaar’s shopping malls, retail and commercial leasing portfolio generated Dh3.5 billion in revenue, up 9 per cent year-on-year.
EBITDA from the segment increased 10 per cent to Dh3.1 billion, while average occupancy across the portfolio stood at about 98 per cent at the end of June.
The company’s international development business recorded property sales of Dh4.2 billion, while revenue rose 8 per cent to Dh1.1 billion, driven by operations in markets including Egypt and India.
Hospitality, leisure and entertainment generated revenue of Dh1.6 billion, with Emaar’s UAE hotels recording average occupancy of 60 per cent during the first half.
Recurring revenue reaches Dh5.1 billion
Emaar’s recurring revenue portfolio, which includes malls, hospitality, leisure, entertainment and commercial leasing, generated Dh5.1 billion during the first half, broadly unchanged from a year earlier.
Recurring revenue EBITDA stood at Dh4 billion, accounting for about 31 per cent of the group’s total EBITDA.
The company said its Dh164.9 billion revenue backlog, development pipeline and recurring income base would support future growth.
Source: Khaleej Times