Emaar Properties PJSC Receives Dual Ratings Upgrade from S&P Global Ratings and Moody's

Strategic Insights -

Dubai's Emaar Properties PJSC, a prominent real estate development company, has been awarded dual ratings upgrades by S&P Global Ratings and Moody's, solidifying its position as a financially stable and strategically adept market leader. The upgrades reflect the company's robust financial performance, revenue visibility, and strategic direction. Emaar's strong financial fundamentals, consistent performance, and disciplined financial management have been acknowledged by the rating agencies.

Key Takeaways:

  • Emaar Properties PJSC has received dual ratings upgrades from S&P Global Ratings and Moody's, with S&P upgrading its long-term issuer credit rating to BBB+ from BBB and Moody's increasing its rating to Baa1 from Baa2, both with stable outlooks.
  • The upgrades are based on Emaar's robust financial fundamentals, consistent performance, and strategic direction, as well as its robust financial performance and revenue visibility.
  • Emaar reported a revenue backlog of approximately AED 127 billion (US$ 34.6 billion) as of March 2025, ensuring strong revenue and cash flow visibility through 2028.
  • The company's recurring income portfolio is on an upward trajectory, with a healthy presales performance in the UAE of AED 65.4 billion (US$ 17.8 billion) during 2024.
  • Emaar's net cash position, low leverage, and strong adjusted EBITDA margins were highlighted as reasons for the upgrade.
  • Moody's noted the significant reduction in adjusted debt from 2020 to March 2025 and a decrease in the debt-to-equity ratio.
  • Founder Mohamed Alabbar expressed pride in receiving recognition from both S&P and Moody's, emphasizing the strength of Emaar's strategy, asset quality, and disciplined financial management.

Statistics:

  • Revenue backlog (AED): 127 billion (as of March 2025)
  • Revenue backlog (USD): 34.6 billion (as of March 2025)
  • Healthy presales in the UAE (AED): 65.4 billion (in 2024)
  • Healthy presales in the UAE (USD): 17.8 billion (in 2024)
  • Net cash position (AED): 25.4 billion (excluding escrow balances)
  • Net cash position (USD): 6.9 billion (excluding escrow balances)
  • Undrawn committed credit facilities (AED): 7.4 billion
  • Undrawn committed credit facilities (USD): 2 billion
  • Interest coverage ratio (times): 24 (for the twelve months ending March 2025)

Sources:

  • Dubai Financial Market (DFM)
  • S&P Global Ratings
  • Moody's Ratings
  • Emaar Properties PJSC (press release)