Emaar Properties has announced its financial results for the first nine months of 2024, showcasing consistent growth and operational efficiency across its diverse business segments.
Emaar recorded total revenues of Dhs 23.8 billion (US$ 6.5 billion) and a net profit before tax of Dhs 12.4 billion (US$ 3.4 billion), achieving growth of 30% and 24% over the same period last year.
Emaar Properties results
Driven by robust demand in Dubai’s real estate market, consistent project execution capabilities, and sustained investor confidence, our remarkable performance is further bolstered by continued growth in Dubai tourism and retail sales.
Emaar’s strategy to improve profit margins and optimise operational efficiencies resulted in Emaar achieving a 17% growth in EBITDA, reaching Dhs 12.6 billion (US$ 3.4 billion) in the first nine months of 2024. This growth is underpinned by Emaar’s commitment to delivering premium projects and experiences, enhancing value for both its customers and stakeholders.
Emaar’s momentum of property sales continued and reached Dhs 50 billion (US$ 13.6 billion) in the first nine months of 2024, a growth of 60% compared to the same period last year. This sales performance further expanded the company’s revenue backlog from property sales to over Dhs 100 billion (US$ 27.2 billion) at the end of September 2024, up 45% from September 2023 and 12% from June 2024. This backlog will be recognized as revenue over the next 4-5 years, indicating sustained profitability.
Commenting on the performance, Mohamed Alabbar, stated: “Our consistent performance in the first nine months of 2024 is a testament to our ability to adapt and thrive in an ever-changing global market. By investing in key locations and launching innovative projects, we continue to redefine luxury living and elevate the lifestyle experience for our customers. As we look forward to the remainder of the year, we are focused on leveraging our strengths to seize new opportunities and drive sustainable growth across all our business segments.”
UAE build-to-sell property development
Emaar Development PJSC (DFM: EMAARDEV), a majority-owned subsidiary, successfully launched 50 projects across various masterplans and recorded the highest-ever property sales of Dhs 48 billion (US$ 13.1 billion) in the first nine months of 2024, achieving a growth of 66% over the same period last year (9M-2023).
Emaar Development continued its strong financial performance in Q3 2024 and recorded revenue of Dhs 12.5 billion (US$ 3.4 billion) and an EBITDA of Dhs 6 billion (US$ 1.6 billion) in the first nine months of 2024, achieving growth of 69% and 35% respectively over 9M-2023. The consolidated revenue of Emaar Properties from its property development business in the UAE during 9M-2024 reached Dhs 15.4 billion (US$ 4.2 billion), including Dubai Creek Harbour.
With a continued uptrend in real estate sales, the backlog of Emaar from property sales in the UAE has reached Dhs 93.8 billion (US$ 25.5 billion), 51% higher than December 2023, which will be recognised as revenue in the coming years.
Shopping malls and commercial leasing
Malls and commercial leasing operations of Emaar achieved revenue of Dhs 4.2 billion (US$ 1.1 billion) and an EBITDA of Dhs 3.5 billion (US$ 953 million) in the first nine months of 2024 (9M-2024).
During the period, the retail sales performance of our tenants has also witnessed growth of over 6% compared to the same period last year. Emaar Malls prime assets boast occupancy of over 99% as of 30 September 2024.
In June 2024, Emaar Malls announced a Dhs 1.5 billion (US$ 408 million) investment to expand Dubai Mall, introducing 240 new shops. The expansion is expected to attract more visitors and will feature a variety of new international and local luxury retail and F&B options.
Dubai Mall achieved a milestone in 2023, becoming the most visited place on Earth with 105 million visitors and recording very strong retail sales. This momentum continued into the first nine months of 2024, with the mall receiving a record 82 million visitors, marking an over 6% increase from the same period last year.
Emaar International
In the first nine months of 2024, Emaar’s international real estate operations recorded property sales of Dhs 1.9 billion (US$ 517 million) and revenues of Dhs 1.6 billion (US$ 436 million) during the first nine months of 2024, primarily driven by operations in Egypt and India. Revenues from international operations represented 7% of Emaar’s total revenue.
Hospitality, leisure and entertainment
In the first nine months of 2024, Emaar’s hospitality, leisure, and entertainment divisions recorded revenues of Dhs 2.6 billion (US$ 708 million) for the first nine months of 2024, achieving a 7% growth compared to the same period last year. The performance was driven by the steady growth in the tourism industry and strong domestic spending. Emaar’s UAE hotels, including those under management, reported an average occupancy of 77% in the first nine months of 2024.
Recurring revenue
Emaar’s recurring revenue-generating portfolio, including malls, hospitality, leisure, entertainment, and commercial leasing, collectively generated revenues of Dhs 6.8 billion (US$ 1.8 billion) during the first nine months of 2024. This revenue represents 29% of Emaar’s total revenue, reflecting the stability and resilience of Emaar’s diversified business model.
tanvir@dubainewsweek.com
