Emaar Malls records 30% growth in net profit to AED 1.22 billion (US$ 332 million) in the first 9 months of 2015

Business

Emaar Malls records 30% growth in net profit to AED 1.22 billion (US$ 332 million) in the first 9 months of 2015

Emaar Malls (DFM: EMAARMALLS), the shopping malls and retail business majority-owned by global property developer Emaar Properties, recorded net profit of AED 1.22 billion (US$ 332 million) during the first nine months (January to September) of 2015. This is 30 per cent higher than the net profit for the same period last year.

Net profit during the third quarter (Jul to Sep) 2015 was AED 376 million (US$ 102 million), 17 per cent higher compared to third-quarter (Jul to Sep) 2014 net profit of AED 321 million (US$ 87 million).

Emaar Malls recorded total revenue of AED 2.19 billion (US$ 596 million) during the first nine months of the year. This is 15 per cent higher than the revenue for the same period last year. Revenue during Q3 2015 is AED 728 million (US$ 198 million), 12 per cent higher than Q3 2014 revenue of AED 650 million (US$ 177 million).

All shopping mall assets of Emaar Malls, including its flagship, The Dubai Mall, recorded total visitor footfall of 90 million during the first nine months of 2015 compared to 81 million during the same period last year recording an increase of 11 per cent.

Led by the increase in visitor arrivals and the robust retail environment energised by the Dubai Summer Surprises and Eid in Dubai celebrations, tenant sales across all Emaar Malls assets were AED 13.5 billion (US$ 3.7 billion) during the first nine months this year.

Emaar Malls further underlined its reputation as the leading choice of retailers with gross leasable area (GLA) occupancy rate 96 per cent during first nine months of 2015. Annualised tenant sales per square foot of Emaar Malls portfolio is at AED 4,216 (US$ 1,148), almost similar compared to last year. Base Rent renewal continued to record significant increase of 29 per cent for leases renewed during the first nine months of 2015.

Mohamed Alabbar, Chairman of Emaar Malls Group PJSC, said: The positive and sustained growth of Emaar Malls during the first nine months of this year underlines the success of our strategy to position our retail assets as family-oriented destinations. Through a diverse calendar of activities, we have focused on strengthening footfall, which has been further catalysed by the committed efforts of the government to boost the retail and leisure sector. The vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, to establish Dubai as a year-round tourist destination has energised the retail sector too, which supported our growth in the third-quarter.

He added: We are committed to create long-term value to our stakeholders and to achieve this we are rolling out innovative retail approaches such as launch of The Souk, our community malls, and the expansion of The Dubai Mall, the worlds most-visited retail and lifestyle destination. An industry-defining initiative, the third edition of the Vogue Fashion Dubai Experience to be hosted this month will further position The Dubai Mall as a global hub for luxury retail and cement Dubais reputation as a global fashion capital.

With a total GLA of about 6 million sq ft, Emaar Malls is expanding The Dubai Malls Fashion Avenue by another 1 million sq ft total built up area, which brings the largest number of high-end international fashion brands under one roof. This will add at least 150 new international and leading regional brands. The leasable area, through this expansion, is about 15 per cent of the current mall and is expected to be completed in 2016. Other assets under Emaar Malls include Dubai Marina Mall, Souk Al Bahar and Gold & Diamond Park, as well as community shopping centres.

The third edition of Vogue Fashion Dubai Experience, the largest of its kind fashion event in the Middle East, to be held on October 29 and 30, 2015 at The Dubai Mall, is organised with the support of Dubai Design & Fashion Council. Its highlights are the Catwalk Fashion Show, Who is on Next? Dubai, a scouting contest open to all fashion designers from the Middle East, Asia and Africa, and the Fashion Lectures.