Emaar Properties PJSC’s Strong First Quarter Performance Sets New Standards in Real Estate Industry.Emaar Properties PJSC (DFM: EMAAR) has unveiled its financial results for the initial quarter of 2024, demonstrating robust performance and operational excellence throughout its diverse ventures.
Key Highlights of Achievements
Emaar has disclosed revenues amounting to AED 6.7 billion (equivalent to US$ 1.8 billion) and a pre-tax net profit of AED 4.3 billion (US$ 1.2 billion), marking a notable surge of 16% compared to the corresponding period last year. This remarkable upswing can be attributed to the burgeoning tourism sector, escalating retail sales, and unwavering demand in the real estate domain within Dubai. The relentless efforts of Emaar to enhance profit margins and streamline operational processes led to a commendable elevation in EBITDA, soaring by 9% to AED 4.4 billion (US$ 1.2 billion) from Q1 2023.
Emaar has attained its highest-ever quarterly property sales in Q1 2024, amassing a staggering AED 13.5 billion (US$ 3.7 billion), which translates to an impressive 47% escalation compared to Q1 2023. Moreover, the revenue backlog from property sales has surged to AED 78.3 billion (US$ 21.3 billion) by March 2024, exhibiting a notable upsurge of 9% from December 2023. This backlog embodies prospective revenue from property sales to be recognized over the ensuing 4-5 years.
Executive Insight
Commenting on the Q1 results, Mohamed Alabbar stated, “Emaar initiated the year with a robust performance, underscoring our concerted efforts toward sustainable growth and unwavering dedication to customer satisfaction. Our investments have been strategic and outcome-driven, yielding substantial returns. We adhere to a clear-cut strategy and a pragmatic business approach, ensuring augmented value for our stakeholders. Our confidence in executing our business blueprints remains unwavering, as we continue to play a pivotal role in shaping the economic landscape of Dubai and beyond.”
UAE Build-To-Sell Property Development
Emaar Development PJSC (DFM: EMAARDEV), a predominantly owned subsidiary, has successfully launched ten projects across varied masterplans, achieving its highest-ever quarterly property sales of AED 12.9 billion (US$ 3.5 billion) in Q1 2024, marking a robust 50% surge over Q1 2023.Emaar Development has exhibited robust financial performance in Q1 2024, garnering revenues of AED 3.5 billion (US$ 953 million) and an EBITDA of AED 1.7 billion (US$ 463 million), representing a commendable uptick of 48% compared to Q1 2023. Emaar Properties has reported a consolidated revenue of AED 4.1 billion (US$ 1.1 billion) from its UAE property development segment, inclusive of Dubai Creek Harbour.Emaar has announced the launch of two pioneering developments in Q1 2024: The Heights Country Club & Wellness and Grand Polo Club & Resort, spanning 140 million square feet of land, with a cumulative development value of AED 96 billion (US$ 26 billion). These ventures are poised to catalyze Emaar’s sales and profitability in the forthcoming years, while significantly enhancing Dubai’s opulent living experiences.
Emaar’s Diversified Ventures
Emaar’s mall and commercial leasing operations have yielded revenues amounting to AED 1.4 billion (US$ 381 million) in Q1 2024. Concurrently, the portfolio has generated an EBITDA of AED 1.1 billion (US$ 299 million). Tenants have recorded substantial sales growth in Q1 2024, marking an approximate 9% surge from Q1 2023. Emaar Malls Management’s premier assets have boasted an average occupancy rate of nearly 98% as of March 31, 2023.
Global Footprint
Emaar’s international real estate endeavors have reported property sales of AED 625 million (US$ 170 million) and revenues of AED 288 million (US$ 78 million) in Q1 2024. International real estate operations constitute 4% of Emaar’s total revenue, with Egypt and India operations spearheading the bulk of it.
Hospitality, Leisure, and Entertainment
Emaar’s hospitality, leisure, and entertainment segments have raked in revenues amounting to AED 983 million (US$ 268 million) in Q1 2024, marking a commendable 10% uptick compared to Q1 2023. The persistent growth in the tourism sector and robust domestic spending have propelled this expansion. Emaar’s UAE hotels, including managed properties, boasted an average occupancy rate of 82% in Q1 2024.
Recurring Revenue Streams
Emaar’s revenue-generating portfolio, encompassing malls, hospitality, leisure, entertainment, and commercial leasing, has generated revenues totaling AED 2.3 billion (US$ 626 million) in Q1 2024. This revenue stream constitutes 34% of Emaar’s total revenue. Contact us
