Dubai Property Developer Sees Profit Surge

Emaar Properties saw a significant surge in its first-quarter performance, with net profit before tax climbing 33% to Dh7.2 billion ($2 billion). This growth was fueled by robust property sales in the UAE and strong performance across its malls and leasing businesses. Revenue also increased by 23% year-on-year, reaching Dh12.4 billion, while EBITDA rose 34% to Dh7.2 billion. Property sales specifically increased by 16% to Dh22.4 billion, driven by demand in established communities and new project launches. The company's revenue backlog also saw a substantial increase, rising 29% year-on-year to Dh163.4 billion, indicating strong future earnings potential.

Emaar Development, the company's UAE build-to-sell property business, played a key role in this success, recording sales of Dh20.1 billion, a 22% increase year-over-year. Revenue for this unit rose 36% to Dh6.9 billion, and net profit before tax increased by 46% to Dh4 billion. During the quarter, Emaar launched 10 new projects, including The Heights Country Club & Wellness.

The company's malls, retail, and commercial leasing businesses also contributed positively, with revenue up 15% to Dh1.8 billion, and an impressive average occupancy rate of 98%. While hospitality, leisure, and entertainment revenue remained relatively flat at Dh1 billion, recurring revenue from malls, hospitality, and commercial leasing assets increased by 7% to Dh2.8 billion, representing approximately 30% of total EBITDA. Emaar also distributed a dividend of Dh8.9 billion, equivalent to 100% of its share capital, marking the second consecutive year of such a payout.