Emaar Properties-owned Emaar Malls posted a 43 per cent jump in its net profit for the second quarter.
Net earnings rose to AED412 million in the three months leading up to June 30 from AED288m in the same period last year. Revenue increased 11 per cent to AED727m from AED653m a year earlier thanks to an increase in visitor numbers at its shopping centers, the company said in a statement.
Emaar Malls recorded a 37 per cent growth in net profit, which reached AED845m during the first six months of 2015, while the revenue for the half-year was AED1.462 billion, up 16 per cent compared with the same period last year.
“The sustained growth of Emaar Malls is catalysed by the strategic approach of Dubai to position itself as a global hub for business and leisure led by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice-President and Prime Minister and Ruler of Dubai. The Dubai Plan 2021 to establish the city as the ‘preferred place to work, live and visit’ is energising all economic sectors, including retail and tourism,” says Mohamed Alabbar, the chairman of Emaar Malls.
The company, which operates The Dubai Mall, reveals that the visitor numbers in the first half of the year rose 11 per cent to 62m compared with the numbers during the same period last year.
Tenant sales across all Emaar Malls assets were AED9.6bn, similar to last year’s retail sales performance.
During the past six months, up to June, base rent renewal rates rose 30 per cent across all its malls and retail assets, while overall gross leasable area (GLA) occupancy increased to 96 per cent.
“Across all indicators of growth, Emaar Malls has accomplished impressive results, defining the sustained value that it generates for all stakeholders. 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 adds.
Emaar Malls, which has a total GLA of six million square feet, plans to complete its expansion of The Dubai Mall next year with the addition of one million sq ft of space. The new leasable areas will make up about 15 per cent of the mall.
In the first half of the year, Emaar Malls began the launch of its new community malls brand called The Souk. Other assets under Emaar Malls include Dubai Marina Mall, Souk Al Bahar and Gold & Diamond Park, as well as community shopping centers.