Emaar Properties, Dubai's biggest listed property company, posted Wednesday a whopping 79% year-on-year surge in its net profit for 2022, reaching $1.9 billion (AED 6.8 billion). This was mainly driven by the uptrend in the Dubai market's property sales.
Emaar's revenue receded to $6.8 billion (AED 24.9 billion) in 2022 from $7.7 billion (AED 28.3 billion) a year earlier, down 13.2%. A robust Dubai property market and the rebound of global tourism lent support to the group's revenue, the company said.
The real estate giant's earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 18% to $2.7 billion (AED 9.8 billion) year-on-year in 2022, thanks to improved margins and continued control over costs.
Emaar's group property sales in 2022 rose to $9.5 billion (AED 35.1 billion) from $9.2 billion (AED 33.8 billion) a year earlier, primarily driven by new project launches. The company's backlog of property sales—to be recognized as revenue in the coming years—also jumped 15.4% to $14.5 billion (AED 53.2 billion).
Emaar Development, the UAE build-to-sell property development business majority-owned by Emaar Properties, saw a 12% year-on-year increase in property sales to $8.4 billion (AED 30.7 billion) throughout 2022, while reporting $3.1 billion (AED 11.5 billion) in revenue, down 35.6% year-on-year.
Emaar's international real estate operations flagged a 44.2% year-on-year decline in property sales for 2022, recording $1.2 billion (AED 4.3 billion). The subsidiary's revenue declined in 2022 compared to a year earlier by 21.4%, registering $1.1 billion (AED 4.2 billion).
Emaar Malls Management, wholly owned by the Dubai giant, registered an 8% increase in revenue in 2022 compared to a year earlier, reaching $1.5 billion (AED 5.4 billion). The subsidiary's prime asset Dubai Mall, the world's most visited retail destination, saw an occupancy rate of 97%.
Emaar's recurring revenue-generating businesses of malls, hospitality, leisure, entertainment, and commercial leasing collectively bagged $2.4 billion (AED 8.8 billion) in revenue in 2022, up 23% year-on-year.
"We expect to see a strong performance by our shopping centers, hotels, and property sales in 2023," said Mohamed Alabbar, founder of Emaar, in a statement.
