Emaar Properties, Dubai's largest listed developer, has reported that its 2022 net profit rose 80 per cent on record real estate sales across its portfolio.

Net profit attributable to equity owners of the company for the 12 months ending December rose to Dh6.83 billion ($1.86 billion), from Dh3.8 billion a year earlier, the company's preliminary results showed on Tuesday in a filing to the Dubai Financial Market, where its shares are traded.

This was driven by record property sales across its portfolio, which hit a record Dh35.1 billion last year, up more than four per cent from 2021's Dh33.7 billion.

Revenue for the full year hit Dh24.93 billion on the back of stronger momentum in both the real estate sector and the overall economy. This was, however, down 11 per cent from the Dh27.9 billion it reported in 2021.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) for 2022 rose 18 per cent to Dh9.8 billion, as the company was able to sustain revenue, control costs and improve margins, Emaar said.

"We are very pleased with our accomplishments," Mohamed Alabbar, founder of Emaar, said.

"Improvements in consumer confidence and overall business activity, especially in the real estate market, have benefitted all the company's operations over the past year, thanks to the strategic measures taken over the past two years."

Shares of Emaar — which is best known for building Burj Khalifa, the world's tallest skyscraper in Dubai — settled 0.35 per cent higher at Dh5.77 at the close of trading at the DFM on Tuesday.

Property prices across Dubai rose in 2022, as the market and wider economy strongly recovered from the coronavirus-induced slowdown.

The emirate's property market also had a record-breaking year in 2022, registering 90,881 transactions, exceeding the previous high of 81,182 in 2009, property consultancy CBRE said in its recent Dubai Residential Market Snapshot report.

Business activity in Dubai's non-oil private sector economy, meanwhile, remained robust in January, expanding for the ninth month in a row as consumer demand improved along with employment in the emirate, the S&P Global purchasing managers' index showed last week.

Emaar has made moves to boost its strategy. In December, it increased its share capital by eight per cent to Dh8.83 billion and issued eight per cent more shares, to bring its total to 8.83 billion.

Earlier last year, the company also increased the foreign ownership limit of its shares to 100 per cent, from 49 per cent, to capitalise on high interest from international investors.

Emaar Development, the company's build-to-sell property development business majority-owned by Emaar Properties, also posted record sales in 2022 worth Dh30.7 billion, more than 13 per cent up from 2021's Dh27 billion.

The unit contributed Dh11.5 billion in revenue and Dh4.2 billion in Ebitda.

"Emaar Development continued the trend of increased sales and profitability," Mr Alabbar said.

Emaar's international sales in 2022 hit Dh4.2 billion, down more than 17 per cent from the previous year's Dh5.1 billion, dragged by a 30 per cent decline in sales to Dh4.3 billion.

Revenue in the unit, which was driven by successful operations in Egypt and India, contributed about 17 per cent to the group's total.

Emaar Malls Management, which overseas the company's retail and shopping malls division, reported an eight per cent increase in 2022 revenue to Dh5.4 billion, compared to Dh5 billion a year earlier.

Tenant sales surpassed pre-Covid levels, and occupancy rates at The Dubai Mall, Emaar's flagship asset, stood at 97 per cent, the company said.

In its hospitality, leisure, entertainment and commercial leasing units, revenue surged 57 per cent to Dh3.4 billion in 2022.

Emaar's hotels in the UAE performed well on higher average daily rates and a boost from the tourism sector, which was driven by global events such as Expo 2020 Dubai and the 2022 Fifa World Cup in Qatar.

Emaar's recurring revenue-generating units, comprising malls, hospitality, leisure, entertainment and commercial leasing, posted Dh8.8 billion in revenue last year, which was a 23 per cent rise from 2021.

"Across the board in our portfolio of retail, hospitality and entertainment, we are seeing demand for the exceptional communities and amenities we deliver," Mr Alabbar said.

Source: Thenationalnews.com