Emaar Development (EMAARDEV) Q2 2024 earnings summary

Executive summary

• Achieved record property sales of AED 31.5 billion in H1 2024, up 56% year-over-year, with total revenue rising 17% to AED 14.41 billion and net profit before tax increasing to AED 7.8 billion.

• Strong performance was driven by growth in real estate sales, hospitality, and leasing segments, with domestic operations contributing the majority of revenue.

• Recurring operations contributed 32% of total revenues and 45% of EBITDA, reflecting a diversified and resilient business model.

• Maintained a healthy balance sheet with net cash of AED 26.1 billion and investment-grade credit ratings (BBB/Baa2, stable outlook).

• The interim financial statements received an unqualified review conclusion from the independent auditor.

Financial highlights

• H1 2024 revenue reached AED 14.41 billion, up 17% year-over-year; EBITDA rose to AED 8 billion; net profit attributable to equity holders increased to AED 6.8 billion.

• Gross profit margin improved to 58%; EBITDA margin at 55-56%; net profit margin at 47%.

• Debt reduced by 23% year-over-year to AED 9.5 billion; cash balance increased to AED 35.6 billion.

• Revenue backlog from property sales at AED 90.1 billion, supporting future revenue visibility.

• Basic and diluted EPS for H1 2024 was AED 0.60, up from AED 0.56 in H1 2023.

Outlook and guidance

• Focus on maintaining market leadership, execution, and maximizing shareholder returns.

• Strategic land acquisitions and new project launches in UAE and international markets to drive long-term growth.

• Continued expansion of recurring revenue streams through retail, hospitality, and entertainment assets.

• Management notes that H1 2024 results are not necessarily indicative of full-year performance.

• Ongoing monitoring of market volatility, inflation, and geopolitical risks is emphasized.