Emaar Properties PJSC reported a considerable increase in first-half profitability, supported by strong real estate sales and improved recurring revenue business performance.
This performance is evidence of consumers’ sustained trust in the Emaar brand and of Dubai’s economy’s broader post-pandemic recovery, which was driven by the real estate market.
Emaar reported high first-half revenue of AED13.575 billion (US$3.696 billion), a growth of 10% compared to H1 2021, driven by the robust performance of its main property development sector and supported by rising recurring revenue operations. As a result of stronger sales with improving margins and ongoing cost optimization, H1 2022 profits before interest, taxes, depreciation, and amortization (EBITDA) increased by 66 percent to AED 6.112 billion (US$1.664 billion) from H1 2021.
Emaar achieved record first half group property sales of AED17.672 billion (US$4.811 billion), an increase of 5% compared to the H1 2021 sales of AED16.842 billion (US$4.585 billion). This was the result of successful property launches by Emaar in both the UAE and international markets, as well as a concerted focus on sales of under-construction projects.
Emaar’s EBITDA increased by 53% to AED2.932 billion (US$798 million) in the second quarter of 2022 from AED1.922 billion (US$523 million) in the same quarter of 2021. Emaar’s revenue for the second quarter of 2022 was AED6.940 billion ($1.889 billion), up 8% from Q2 2021 revenue of AED6.439 billion ($1.753 billion).
Emaar’s solid financial position further demonstrates its ability to maintain high revenue, profitability, and shareholder return in the near future. At the end of the first quarter of 2022, the company had a strong property sales backlog worth AED47.982 billion (US$13.063 billion), which will be recognized as revenue in the future.