Emaar Properties reports property sales of USD 1.937 bn in Q1 of 2021
Emaar Properties PJSC, announced it has achieved significant increased property sales underscoring investors’ continued confidence in Emaar brand and recovery of Dubai real estate market. During the first quarter (January to March) of 2021, Emaar recorded an increase in group property sales of 83 per cent to AED 7.115 billion (US$ 1.937 billion) compared to the Q1 2020 group property sales of AED 3.887 billion (US$ 1.058 billion). The property sales were even higher than Q1 2019 by 6%.
Key performance highlights
Backed by robust property sales, Emaar’s Q1 2021 revenue stood at AED 5.993 billion (US$ 1.632 billion), an increase of 12 per cent compared to Q1 2020 revenue of AED 5.328 billion (US$ 1.451 billion). Emaar reported net profit of AED 657 million (US$ 179 million) for Q1 2021 compared to the net profit of AED 609 million (US$ 166 million) during the same period in 2020, a growth of 8 per cent.
With a solid sales backlog of AED 41.805 billion (US$ 11.382 billion), which will be recognised as future revenue for Emaar Properties, the backlog reflects the strength of Emaar’s financial position to preserve high revenue, profitability and shareholders’ return in the foreseeable future.
Mohamed Alabbar, Founder of Emaar Properties, said: “As one of the most dynamic and growing markets in the world, Dubai’s property market resilience is a testament to its commitment to become one of the world’s best cities. We are dedicated to delivering properties in a timely manner and providing unparalleled residential developments that improve the lives of our residents and visitors. Within such a short space of time, Emaar has managed to achieve results that are comparable to 2019, before the pandemic affected businesses globally. Results are not by chance; they are a collective effort”.
Dubai continues to lead the way as a global hub for trade, financial services, logistics, travel and hospitality, with emerging sectors witnessing growth such as technology, green energy, healthcare and education. The region continues to attract a community of skilled professionals and investors who in-turn invest in the region’s continuous growth potential, reflective in Emaar’s sales records for Q1 2021.
Emaar has handed over more than 74,500 residential units in Dubai and international markets, with more than 25,500 units currently under development in the UAE and 11,500 units in global markets.
Setting new benchmarks in design, build quality, and innovation, Emaar consistently offers premium experiences and lifestyle opportunities across market segments; and its properties continue to remain sought-after by investors at home as well as abroad.
Emaar Development PJSC (DFM: EMAARDEV), the UAE build-to-sell property development business, majority-owned by Emaar Properties achieved strong quarterly property sales in Dubai during the first quarter (January to March) of 2021 recording an increase of 106 per cent to AED 5.904 billion (US$ 1.607 billion) compared to the Q1 2020 sales of AED 2.864 billion (US$ 780 million). Emaar Development has achieved revenue of AED 3.848 billion (US$ 1.048 billion) and net profit of AED 781 million (US$ 213 million), which grew by 26 per cent and 20 per cent over Q1 2020, respectively.
Emaar’s international operations continued to improve their operational results and recorded property sales of AED 1.211 billion (US$ 330 million) in Q1 2021 compared to AED 1.023 billion (US$ 279 million) in Q1 2020 and AED 764 million (US$ 208 million) in Q1 2019, a growth of 18 per cent compared to 2020 and 59 per cent compared to 2019. This highlights the positive property market recovery as well as the significant interest in Emaar’s international expansions and trusted master developments.
Emaar’s international businesses contributed 13 per cent to Emaar’s total revenue, underpinned by successful operations in Egypt, India and Pakistan.
Emaar Malls (DFM: EMAARMALLS), the shopping malls and retail giant, released its results for Q1 2021, confirming its recorded revenue of AED 901 million (US$ 245 million). Overall net profit for Q1 2021 amounted to AED 318 million (US$ 87 million) which is 169 per cent higher than Q4 2020. Emaar Malls assets maintained strong occupancy levels at 91 per cent.
Emaar Malls’ e-commerce fashion and lifestyle platform, Namshi, a wholly owned subsidiary, recorded sales of AED 258 million (US$ 70 million) for Q1 2021, an increase of 6 per cent compared to Q1 2020. Namshi’s strong performance is credited to its persistent growth in Saudi Arabia, Kuwait and other GCC countries along with its launch in Qatar in early 2021 and an increase of 117 new brands.
Emaar Hospitality, Leisure & Entertainment
The hospitality, leisure, entertainment and commercial leasing businesses of Emaar recorded revenue of AED 457 million (US$ 124 million) for Q1 2021, with the hotels under Emaar Hospitality Group, including its managed hotels, boasting average occupancy levels of 62 per cent despite current market challenges and restrictions imposed by authorities.
Underlining the dynamic revenue streams of Emaar, the company’s recurring revenue generating businesses of malls, hospitality, leisure, entertainment and commercial leasing, together achieved revenue of AED 1.358 billion (US$ 370 million) which makes up 23 per cent of the company’s revenue.