Dubai, UAE; November 6, 2016: Emaar Malls (DFM: EMAARMALLS), the shopping malls and retail business majority-owned by global property developer Emaar Properties, has recorded a net profit of AED 1.42 billion (US$ 387 million) during the first nine months (January to September) of 2016, an increase of 16 per cent over the same period last year at AED 1.22 billion (US$ 332 million).
The total revnue for the first nine months of the year was AED 2.39 billion (US$ 651 million), which is 10 per cent higher than the revenue of AED 2.17 billion (US$ 591 million) achieved during the same period last year.
Sustaining positive growth through the third quarter (July to September) 2016, net profit was AED 435 million (US$ 118 million), which is 16 per cent higher than the Q3 2015 net profit of AED 376 million (US$ 102 million). Revenues also grew in Q3 2016 to AED 774 million (US$ 211 million), an increase of 8 per cent over Q3 2015 revenue of AED 720 million (US$ 196 million).
The assets of Emaar Malls are sought-after by retailers with gross leasable area (GLA) occupancy levels across all assets averaging 96 per cent during the first nine months of 2016 similar to the levels last year.
Mohamed Alabbar, Chairman of Emaar Malls and Emaar Properties, said: “Having set a track-record in delivering retail and leisure experiences, Emaar Malls is charting a new growth strategy. This is underpinned by the expansion of The Dubai Mall and the development of mega-retail precincts in Dubai Creek Harbour and Dubai Hills Estate.
He added: “The robust economic environment of Dubai, led by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai, catalyses the retail sector of the city. We will continue to develop iconic retail and leisure destinations in Dubai and key international markets to create long-term value for our stakeholders.”
Dubai’s retail hubs
With the expansion of The Dubai Mall’s Fashion Avenue by another 1 million sq ft built up area, the mall will further serve as home to high-end luxury and high-street brands. To add to its 1,200 retail outlets, including a dedicated Fashion Avenue with all the leading global brands, another 150 retail stores will open as part of the expansion.
The other mall assets of Emaar Malls – Dubai Marina Mall, Souk Al Bahar and Gold & Diamond Park – also recorded positive growth. The Souk, the new concept of neighbourhood retailing, introduced by Emaar has also gained positive response from the community.
Sought-after by retailers
Emaar Malls is creating new destinations for retailers and customers with the Boulevard, Fountain Views and Zabeel expansions of The Dubai Mall. Further, the dedicated retail district in Dubai Creek Harbour will be another prime hub for luxury retail and leisure. It will be linked directly to The Tower at Dubai Creek Harbour, the new icon that will serve as a magnet for visitors from around the world.
With a current total GLA of about 6 million sq ft, Emaar Malls is also delivering a centrally located mall and community retail areas including a boutique mall for high-end brands at Dubai Hills Estate.
Following the opening of The Ranches Souk in Arabian Ranches II, The Souk is being rolled out at The Meadows and The Springs and future community malls projects. Another retail addition will be the Springs Village with over 245,000 sq ft gross leasable area.
Earlier this year, Emaar Malls distributed a cash dividend of 10 per cent of the share capital, equivalent to AED 1.3 billion (US$ 354 million), setting a new benchmark in value creation for the company’s shareholders.