Emaar Malls 2015 profit jumps 23pc to $451m

Emaar Malls, the retail business majority-owned by property developer Emaar Properties, recorded a net profit of Dh1.656 billion ($451 million) for 2015, as against Dh1.351 billion in the previous year, a rise of 23 per cent.

Financial year 2015 (FY2015) rental income recorded a growth of 11 per cent to Dh2.992 billion ($815 million), compared to Dh2.694 billion ($733 million) in FY2014.

Net profit during the fourth quarter (Q4) of 2015 was Dh435 million ($118 million), which is 16 per cent higher than the Q3 2015 net profit of Dh376 million ($102 million). Rental income during Q4 2015 was Dh821 million ($224 million), a 14 per cent increase over the Q3 2015 rental income of Dh720 million ($196 million).

Emaar Malls occupancy levels increased to reach 96 per cent in 2015, while base rent renewal rates clocked an increase of 25 per cent for leases renewed during 2015.

Visitors arrival across all Emaar Malls assets crossed the landmark 124 million in 2015, an increase of 9 per cent compared to 2014, with The Dubai Mall accounting for 80 million annual visitors, once again clinching the honour as the world’s most-visited shopping and leisure destination.

Mohamed Alabbar, chairman of Emaar Malls and Emaar Properties, said: “The retail sector is a key contributor to Dubai’s GDP, and Emaar Malls assets mark a significant contribution to defining our city as must-visit destination for retail and leisure.”

“The Dubai Mall, our trophy asset, is today the first choice for luxury retail for high net worth individuals from a wider catchment area of the Middle East, Africa, South Asia and China, thus serving over 2.5 billion people. The robust performance of all our mall assets underline our commitment to sustained value creation for our stakeholders.

“A key pillar of the Dubai Plan 2021 announced by Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, is to ensure that Dubai transforms as one of the world’s leading business centres. Through our retail and leisure attractions within our malls, we are delivering on HH’s vision by creating globally distinctive lifestyle experiences that add to the pride of the city,” Alabbar added.

Emaar Malls today has a gross leasable area of about 6 million sq ft. This is being expanded with the ongoing addition of another 1 million sq ft built-up area at The Dubai Mall’s Fashion Avenue. It will add another 150 international and local brands to the mall, adding more choice to visitors.

One of the defining success stories of Emaar Malls in 2015 was hosting the third edition of the Vogue Fashion Dubai Experience at The Dubai Mall. The two-day event saw a surge in visitor arrivals highlighted by the participation of the world’s who’s who in fashion industry.