Emaar Properties reports 5.6% increase in Q3 profit on revenue boost

Dubai-based real estate firm Emaar Properties reported a 5.6% rise in its third quarter net profit, driven by a boost in revenue, despite ongoing uncertainty caused by the Iran war. The company's net profit for Q3 2022 amounted to Dh4.6 billion ($1.25 billion), while revenue increased by nearly 3% to Dh13.6 billion over the same period.

On an annual basis, revenue grew by 13% to Dh37.5 billion. For the nine months ending September, Emaar's profit surged 16% to Dh13.28 billion, with revenue rising 13% to Dh37.5 billion. Property sales during this period reached Dh34.7 billion, with 14 new projects launched across its master-planned communities. The revenue backlog from property sales rose 6% year-on-year to Dh158.8 billion.

Despite economic and geopolitical uncertainties, Emaar attributed its performance to successful project execution and revenue recognition from its existing backlog. The UAE's open and diversified economy, as well as Dubai's economic fundamentals, provided a supportive environment for the company's key markets. However, the region experienced a dip in residential property transactions due to cautious buyers amid regional uncertainty.

Emaar plans to make a voluntary cash offer to acquire up to 100% of Emaar Development, its listed subsidiary, at Dh15 per share. The company's board also approved a one-time special dividend of Dh4.4 billion, equivalent to Dh0.5 per share.