Growth and expansion are key themes in Emaar Properties’ financial results for H1 2024. The company recorded a total revenue of Dhs14.4bn ($3.9bn) and a net profit before tax of Dhs7.8bn ($2.1bn), reflecting growth of 17 per cent and 33 per cent, respectively, compared to the same period last year.
The performance was driven by sustained investor confidence, robust demand in Dubai’s real estate market, strong project execution capabilities, and continued growth in tourism and retail sales.
The company’s focus on improving profit margins and optimising operational efficiencies led to a 24 per cent increase in EBITDA, which rose to Dhs8bn in H1 2024.
Property sales on the rise
Emaar achieved record group property sales in H1 2024, totalling Dhs31.5bn, a 56 per cent increase compared to H1 2023.
This momentum in property sales expanded its revenue backlog from property sales to Dhs90.1bn as of June 30, up 43 per cent from June 2023 and 15 per cent from March 2024.
This backlog represents future revenue from property sales to be recognised over the next four to five years, indicating sustained profitability.
“Emaar delivered remarkable results in the first half of the year, reflecting our commitment to long-term success and customer satisfaction,” said Mohamed Alabbar, Emaar‘s founder. “Our strategic investments in key locations and other major assets have yielded impressive returns. With a clear vision and pragmatic approach, we maximise value for our stakeholders.”
Key highlights of Emaar’s H1 performance
Emaar Development successfully launched 25 projects across various masterplans, achieving the highest-ever property sales of Dhs29.7bn, a 56 per cent increase over H1 2023.
The malls and commercial leasing operations reported revenue of Dhs2.8bn and achieved an EBITDA of Dhs2.3bn. Retail sales performance of tenants grew over 7 per cent compared to the same period last year.
The mall division’s prime assets registered nearly 99 per cent occupancy as of June 30.
In June 2024, Emaar Malls announced Dhs1.5bn to expand Dubai Mall, introducing 240 new shops.
The expansion is expected to attract more visitors and feature 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 continued this momentum into the first half of 2024 with a record 57 million visitors, an 8 per cent increase from the same period last year.
During H1 2024, the company’s international real estate operations reported property sales of Dhs1.8bn, growing by 50 per cent compared to H1 2023.
Operations in Egypt and India drove this growth, with international real estate operations recording revenue of Dhs800m, representing 6 per cent of the company’s total revenue.
The hospitality, leisure, and entertainment divisions generated Dhs1.8bn in revenue, marking a 9 per cent increase from H1 2023.
The growth was driven by the steady increase in tourism and strong domestic spending.
The company’s UAE hotels reported an average occupancy of 78 per cent. During this period, Emaar also expanded its hotel portfolio by adding four new hotels with around 500 keys.
Recurring revenue
Emaar’s recurring revenue-generating portfolio, including malls, hospitality, leisure, entertainment, and commercial leasing, collectively generated revenue of Dhs4.6bn during H1 2024, representing 32 per cent of Emaar’s total revenue.
