Emaar Malls records six per cent growth in net profit in first nine months of 2017
Emaar Malls (DFM: EMAARMALLS), the shopping malls and retail business majority-owned by Emaar Properties (DFM: EMAAR), recorded a net profit of AED 1.506 billion during the first nine months of 2017, a growth of 6 per cent over the net profit of AED 1.422 billion during the same period in 2016.
The total revenue for the first nine months of the year was AED 2.5 billion, which is five per cent higher than the revenue of AED 2.39 billion, during the same period last year.
Emaar Malls completed the acquisition of leading Middle East online fashion retailer Namshi on 16 August 2017, marking a milestone in its digital-oriented growth. Following Emaar Malls’ acquisition, Namshi recorded sales of AED 196 million during Q3 2017, an increase of 39 per cent compared to the same period in 2016.
Emaar Malls reported Q3 2017 revenue of AED 876 million, 13 per cent higher than Q3 2016 revenue of AED 774 million, contributed in part by the consolidation of Namshi revenue. Net profit was AED 485 million during Q3 2017, an 11 per cent growth compared to Q3 2016. With a gross leasable area (GLA) of 557,418.24 square metres in Dubai, GLA occupancy levels across Emaar Malls’ assets averaged 95 per cent during the first nine months of 2017.
Underlining the sustained growth of Emaar Malls’ assets, The Dubai Mall, Dubai Marina Mall, Souk Al Bahar, Gold & Diamond Park, and community shopping centres together welcomed over 95 million visitors during the first nine months of the year, an increase of five per cent over the same period last year. The Dubai Mall continued to record strong visitor footfall at 58 million during the first nine months of this year, highlighting its credentials as the world’s most visited retail and entertainment destination.
“Emaar Malls achieved its growth through innovative initiatives that are aimed at enhancing the visitor and customer experience. In addition to introducing advanced technologies that add value to customers and retailers, Emaar Malls is investing in digital platforms to offer more and varied choices for people across multiple channels. We are further strengthening the retail sector in Dubai to offer future-ready shopping environments with new projects such as the dedicated high-end retail precinct in Dubai Creek Harbour. With the shifts in shopping trends, it is important to adopt innovative strategies, and we are focused on creating socially and culturally inspiring spaces for people. This will contribute to the goals of Dubai Plan 2021, announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, to establish Dubai as the preferred place to live, work and visit,” said Mohamed Alabbar, Chairman of Emaar Malls and Emaar Properties.
Strengthening its malls portfolio in Dubai, Emaar has announced the launch of ‘Dubai Hills Mall,’ a family retail district located in the heart of Dubai Hills Estate. A regional retail and leisure destination scheduled to open in late 2019, Dubai Hills Mall will have a GLA of over 185,806.08 square metres. It will be home to more than 750 outlets including a range of ‘fast fashion’ retail and F&B choices featuring a wide array of restaurants and cafes.
The upcoming retail district in Dubai Creek Harbour will be a prime hub for luxury retail and leisure, linked directly to the Dubai Creek Tower, the new global icon. In other growth initiatives, The Dubai Mall is in the final stages of the expansion of Fashion Avenue to add 92903.04 square metres of built up area and deliver over 55741.82 square metres GLA. The expanded Fashion Avenue will add over 150 international brands, and F&B and leisure outlets.
Work has also commenced on the mall’s Mohammed bin Rashid Boulevard expansion that will serve as an active link to both Mohammed bin Rashid Boulevard and the mall’s Fountain Views expansion. Emaar Malls is also undertaking the Zabeel expansion of The Dubai Mall. Strengthening its portfolio of community shopping centres, Emaar Malls is also developing a new retail addition under its ‘The Souk’ concept in the Springs Village with over 22761.24 square feet GLA.