Emaar Malls’ second quarter net rises over 40%

Emaar Malls Group, owned by Emaar Properties, registered a second quarter net profit of Dh412 million, a 43 per cent jump.

Revenue in the quarter to June jumped 11 per cent to be at Dh727 million, compared to Dh653 million in the same period last year, the company said in a statement.

During the six months to June, Emaar Malls recorded a 37 per cent growth in net profit Dh845 million. Revenue for half-year of 2015 was Dh1.462 billion, up 16 per cent higher compared to the same period last year.

Tenant sales across all Emaar Malls assets were Dh9.6 billion, which was almost similar to last year retail sales performance. Base rent renewal rates recorded a significant increase of 30 per cent for leases renewed during first half 2015 across all its malls and retail assets. Overall GLA (gross leasable area) occupancy across Emaar Malls assets increased to 96 per cent.

"We are committed to creating long-term value to Dubai's economy through our expansion plans and our emphasis on providing value-added lifestyle experiences to the mall visitors,” Mohammad Al Abbar, Chairman of Emaar Malls, said in a statement.

"A key contributor to the recurring revenues of Emaar Properties, our shopping malls and retail business is also setting international benchmarks in the industry. This is highlighted by the robust footfall and tenant sales at The Dubai Mall, our flagship asset,” he added.

With a total GLA of about 6 million sq. ft., Emaar Malls has GLA occupancy rate of 96 per cent. Emaar Malls is expanding The Dubai Mall's Fashion Avenue, which brings the largest number of high-end international fashion brands under one roof, by one million sq. ft. built up area to welcome a larger assortment of leading fashion 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.