Emaar Malls posts 6% growth in revenue to Dhs2.227b in half-year

Business Bureau, Gulf Today

Emaar Malls, the shopping malls and retail business majority-owned by Emaar Properties, recorded an increase in net profit by 3 per cent during the first six months (January to June) of 2019 to Dhs1.130 billion (US$ 308 million), compared to the net profit of Dhs1.102 billion (US$ 300 million) during the same period in 2018. Revenue for H1 2019 is Dhs 2.227 billion ($606 million), an increase of 6 per cent over the H1 2018 revenue of Dhs 2.103 billion (US$ 573 million).

Revenue for Q2 2019 recorded an increase of 8 per cent to Dhs 1.152 billion (US$ 314 million), compared to the Q2 2018 revenue of Dhs 1.065 billion (US$ 290 million), and 7 per cent over the Q1 2019 revenue of Dhs 1.075 billion (US$ 293 million).

Creating sustained value for its shareholders, Emaar Malls distributed a cash dividend of Dhs 1.301 billion (US$ 354 million), equivalent to 10 per cent of share capital, for the fourth consecutive year, during the second quarter of the year.

The assets of Emaar Malls – The Dubai Mall, Dubai Marina Mall, Gold & Diamond Park, Souq Al Bahar and the Community Retail Centres – together recorded an impressive visitor footfall of 68 million during the first six months of this year. This is 2 per cent more than the visitor arrivals during H1 2018, when the assets together welcomed 67 million visitors. The Dubai Mall, the world’s most visited retail and lifestyle destination, welcomed 41 million visitors in H1 2019, 2 per cent higher than the same period last year. Occupancy levels across all assets stood at a robust 92 per cent during the first half of 2019.

Another highlight of the year was Emaar Malls marking the full acquisition of Namshi, the leading regional fashion e-commerce retailer in an all-cash transaction of Dhs 496.9 million (US$ 135 million). Namshi reported sales of Dhs 422 million (US$ 115 million) during H1 2019, 10 per cent higher than the online sales of Dhs 384 million (US$ 105 million) reported in H1 2018.

Mohamed Alabbar, Chairman of Emaar Properties and Board Member of Emaar Malls, said: “Emaar Malls has consistently focused on delivering enhanced customer experiences, which drive our sustained growth - both through our malls and Namshi, our fully owned online business. Our strategy is to deliver exceptional omnichannel retail choices for our visitors. The positive performance reflects the customer-oriented asset mix that makes our malls preferred lifestyle destinations for all, as well as the growth in tourist arrivals to Dubai, today, a global tourism and business hub.”

Emaar Malls is further strengthening its retail infrastructure with new extensions of The Dubai Mall – Zabeel and Fountain Views – scheduled to open this year. These extensions link the mall to the Financial Centre Road and to the Sheikh Mohammed bin Rashid Al Boulevard, respectively, and will add 4,500 parking spaces, enhancing the connectivity and convenience of visitors.

Dubai Hills Mall, the brand-new asset under Emaar Malls, will open in 2020 in Dubai Hills Estate, which will offer a GLA of about 2 million sq. ft. and feature about 550 retail and entertainment destinations. Dubai Hills Mall will have four major family entertainment and leisure centres as well as a cineplex, hypermarket, seven anchor retail experience stores, and over 7,000 dedicated parking spaces.

Emaar Malls is also redeveloping Meadows Village to increase its GLA by approximately 95,000 sq. ft, and is scheduled for completion in 2020, further enhancing its Community Retail Centres. Emaar Malls’ properties include some of the most iconic malls, entertainment and community integrated retail centres in the Middle East, including The Dubai Mall, its flagship asset, which has been the most visited shopping and entertainment mall worldwide in each of the last four years.

Emaar Malls also owns and manages Souk Al Bahar, an Arabesque style dining and entertainment development in Downtown Dubai; Dubai Marina Mall, a lifestyle shopping mall for residents and visitors of the Dubai Marina community; and Gold & Diamond Park, a shopping destination dedicated to gold and jewellery.

Emaar Malls’ properties are developed as an integral part of the master plan developments of its controlling shareholder, Emaar Properties, and, therefore, are strategically located in key areas of Dubai that benefit from favourable socio-economic demographics and increasing tourism. Creating sustained value for its shareholders, Emaar Malls distributed a cash dividend of Dhs 1.301 billion (US$ 354 million), equivalent to 10 per cent of share capital, for the fourth consecutive year, during the second quarter of the year.