Dubai’s largest listed developer Emaar Properties has reported a 46 per cent annual jump in its third-quarter net profit, driven by new project launches and strong demand.
Net profit attributable to owners of the company for the three-month period to the end of September surged to about Dh1.5 billion ($408 million), Emaar Properties said on Monday in a regulatory filing to the Dubai Financial Market, where its shares are traded.
Quarterly earnings before interest, taxes, depreciation and amortisation (Ebitda) jumped 12 per cent on a yearly basis to Dh2.3bn. Revenue during the July-September period dropped 21 per cent year-on-year to Dh5.32bn.
“We continue to build on momentum generated in the first half of the year,” an Emaar representative said.
“The strategic measures put in place following the pandemic are seeing fruition as all parts of the company benefit from increased consumer confidence and activity, particularly in the real estate market.”
In the first nine months of the year, the company more than doubled its net profit attributable to owners of the company, which rose to Dh5.8bn, while Ebitda rose 47 per cent to Dh8.4bn, underpinned by robust property sales and growth in the performance of recurring revenue businesses.
Revenue during the January-September period dropped 1.2 per cent to Dh18.9bn.
Dubai's property market has made a strong recovery from the pandemic-driven slowdown, as the UAE's economy improves, helped by fiscal and monetary measures.
Dubai Land Department data showed 22,895 units were sold in the third quarter, up 61 per cent from the same period in 2021.
Emaar recorded the highest group property sales of Dh26.9bn during the nine-month period, the company said, adding that the property sales backlog reached Dh51.9bn that will be recognised as revenue in the coming years.
Its proposal to purchase Dubai Creek Harbour for Dh7.5bn, to be paid equally in cash and shares of Emaar Properties, was also approved by the board of directors and the shareholders.
Emaar Properties agreed to fully acquire Dubai Creek Harbour from Dubai Holding in August.
They also approved the sale of Namshi to Noon for Dh1.2bn, representing an excess of Dh127m over the total investment in Namshi, Emaar said.
“As we move into Q4 [fourth quarter of] 2022, we are confident of a further uplift in our malls, hospitality, and retail assets as we head into the winter months and see a boost to the tourism and retail sectors,” the company representative said.
Emaar Development, the UAE build-to-sell property development business majority-owned by Emaar Properties, reported a revenue of Dh9.3bn in the nine-month period.
Emaar’s international real estate operations recorded property sales of Dh3.7bn, contributing a revenue of Dh3.2bn for the nine-month period, led by successful operations in Egypt and India, the company said.
Emaar Malls Management, the wholly owned shopping malls and retail arm of Emaar, recorded a 24 per cent growth in nine months revenue compared to the same period last year, reaching Dh4bn.
The hospitality, leisure, entertainment and commercial leasing businesses of Emaar recorded sales of Dh2.4bn for the nine months ending September, a growth of 78 per cent compared to the same period last year.
Emaar’s hotels in the UAE, including joint ventures and managed hotels, achieved strong ADRs (average daily rates) with average occupancy levels of 67 per cent during the January-September period.