Net income up 5 per cent on lower costs
Emaar Malls Q2 net profit beats estimates despite flat revenues
Emaar Malls, the operator of Dubai Mall, said yesterday it posted higher-than-expected net profit for the second quarter , even as rental revenues fell on a quarterly basis.
The malls operator, whose portfolio includes the Gold & Diamond Park, said net profit for the quarter rose to Dh482 million, a year-on-year increase of 5 per cent, thanks to a fall in operating expenses and sales and marketing costs.
Profits came in slightly ahead of an average analyst forecast of Dh467m, compiled by Bloomberg,
Rental income reached Dh788m for the second quarter, compared with Dh785m in the same period a year ago, and down 6 per cent compared with the first quarter.
Footfall at Emaar Malls assets, which also include Souk Al Bahar, Dubai Marina Mall and various community shopping centres, reached around 31 million visitors during the second quarter, roughly in line with the same period last year, and down by about 9 per cent compared with the first quarter of the year, according to calculations made by The National.
The Dubai Mall, the company’s flagship asset, recorded a visitor footfall of 39 million in the first half of 2017 with gross leasable area (GLA) occupancy levels across Emaar Malls’ assets averaging 95 per cent during the period. The company did not provide a breakdown of figures for the second quarter.
“The strong performance of Emaar Malls is highlighted by the diversity of retail choices and leisure attractions at our malls that welcome visitors from around the world,” said Mohamed Alabbar, chairman of Emaar Malls and Emaar Properties in a statement.
“In addition to new retail districts that we are developing in Dubai, we will continue to invest in next-generation technology to transform the retail and shopping mall experience for our visitors including families and tech-savvy youth.”
Emaar Malls noted that the expansion of Dubai Mall’s Fashion Avenue, which will have another 1 million sq ft of built-up area delivering over 600,000 sq ft GLA, was in its “final stages,” and would add over 150 international brands and F&B and leisure outlets to the mall.
The company said that it was developing a new retail addition under its ‘The Souk’ concept in Dubai’s Springs Village with over 245,000 sq ft GLA, and was also working on an expansion to the Boulevard in Downtown Dubai.
Emaar Malls is also developing a new retail district in Dubai Creek Harbour, the 6-square kilometer mega-development. It is also planning expansions to Dubai Mall’s Fountain Views and Zabeel, as well as a centrall- located mall, community retail areas and a boutique mall for high-end brands in Dubai Hills Estate, an 11-million square meter master-planned community.