Emaar Malls records 8% growth in net profit to $300 million

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Staff Report

Emaar Malls, the shopping malls and retail business majority-owned by Emaar Properties, has recorded a growth of 8 per cent in its net profit for the first half (January to June) 2018 to AED1.102 billion (US$300 million) compared to the H1 2017 net profit of AED1.021 billion (US$ 278 million). Revenue for half-year 2018 is AED2.103 billion (US$573 million), an increase of 29 per cent over H1 2017 revenue of AED1.624 billion (US$442 million).

During the second quarter (April to June) of the year, Emaar Malls recorded a net profit of AED 554 million (US$ 151 million), 15 per cent higher than Q2 2017 net profit of AED 482 million (US$ 131 million). Revenue during Q2 2018 was AED 1.065 billion (US$ 290 million), 35 per cent higher than the Q2 2017 revenue of AED 788 million (US$ 215 million).

Earlier this year, Emaar Malls distributed a cash dividend of AED 1.301 billion (US$ 354 million), equivalent to 10 per cent of share capital, to shareholders – for the third consecutive year – underlining its focus on sustained value creation.

Emaar Malls has inaugurated the expansion of The Dubai Mall Fashion Avenue, which added over 150 international brands, as well as The Springs Souk, a vibrant community centre with a wide choice of leisure attractions added a total gross leasable area (GLA) of 850,000 sq. ft. With this addition, Emaar Malls has a GLA of over 6.7 million sq. ft. in Dubai. The occupancy across the assets of Emaar Malls was a robust 93 per cent during the first half of 2018.

Emaar Malls assets – including The Dubai Mall, Dubai Marina Mall, Souk Al Bahar, Gold & Diamond Park and community shopping centres – welcomed 67 million visitors during the first half of 2018, 3 per cent higher than in H1 2017.

The Dubai Mall reiterated its credentials as the world’s most visited retail and shopping destination welcoming 40 million visitors during the first half of the year, driven by year-round activities including the popular festivities to mark the Chinese New Year that welcomed thousands of Chinese tourists.

Reflecting the success of Emaar Malls’ investment in tech-retail platforms, Namshi, which was acquired in August 2017, recorded online sales of over AED 384 million (US$ 105 million) in the first half of 2018, an increase of 22 per cent over the same period last year.

Mohamed Alabbar, Chairman of Emaar Properties and Board Member of Emaar Malls, said: “In a short span of time, Emaar Malls has underlined its strength in delivering world-class retail destinations that meet the aspirations of both UAE residents and tourists. We are now taking the Emaar Malls growth story to the next level with a firmer focus on omnichannel retailing and the creation of iconic new destinations that will reshape retail dynamics. Designed for the next generation and leveraging future technologies, these malls will bring the timeless charm of the city squares in a high-tech environment.”

Emaar’s next-era retail destinations include the upcoming new retail precinct in Dubai Creek Harbour, the vibrant 6 square kilometre mega-development by the historic Creek and overlooking the Ras Al Khor Wildlife Sanctuary. Adjacent to Dubai Creek Tower, the astonishing new icon, Dubai Square – in its totality – represents a 2.6-million square metre (about 30 million square feet) retail, hospitality and residential district for the future.

Equivalent to the size of more than 100 football pitches – with over 750,000 square metres (8.07 million sq ft) of gross floor retail space – Dubai Square pushes the boundaries of design and mall layout. Blurring the boundaries of online and in-mall shopping, integrating indoor and outdoor, and delivering a social experience like none other, the all-new Dubai Square is designed for the new era of customers, digital, connected and tech-savvy, and setting a benchmark for retail experiences in the 21st century.

The Dubai Hills Mall in Dubai Hills Estate is another key development with its construction progressing as per schedule. Dubai Hills Mall will have a GLA of about 2 million sq. ft., and will feature about 650 retail outlets including ‘fast fashion’ retail stores, restaurants and cafés. It will have four major family entertainment and leisure centres as well as a cineplex, hypermarket, seven anchor retail experience stores, and dedicated parking spaces for over 7,000 vehicles.

In other significant expansion, work on The Dubai Mall’s Mohammed bin Rashid Boulevard expansion that will link to both Mohammed bin Rashid Boulevard as well as its Fountain Views and Zabeel expansions of the mall has commenced. -abdulbasit@theuaenews.com