Emaar Malls, the shopping malls and retail business majority-owned by developer Emaar Properties, reported first quarter (January-to-March) 2016 net profit of AED529 million ($144 million), 22% higher than the Q1 2015 net profit of AED433 million ($118 million).
Rental income for the first three months of the year is AED833 million ($227 million), a growth of 14% over Q1 2015 rental income of AED731 million ($199 million). EBITDA for Q1 2016 grew 14% over the same period last year. Occupancy levels during the Q1 2016 were 96%, which is comparable to 2015.
Total visitor arrivals to all assets of Emaar Malls during Q1 2016 crossed 31 million, again similar to Q1 2015. The Dubai Mall, flagship asset of Emaar Malls, welcomed over 20 million visitors in the first three months of 2016, similar to same period last year.
“The vision of Emaar Malls is to create world-class malls that deliver memorable experiences for visitors, and we will achieve this through our three-pronged strategy of growing our portfolio in the local market, expanding internationally and innovating and leading the transition to the next generation malls,” says Mohamed Alabbar, chairman of Emaar Malls and Emaar Properties.
“The retail sector has traditionally been one of the strongest contributors to the economy of Dubai. The central location, effortless connectivity with all leading global cities and the growing status of Dubai as a leisure and business hub catalyse the industry’s growth. Emaar Malls is adding significant value to the economy through our assets that surpass industry averages in occupancy and visitor arrivals,” he adds.
Going forward, Emaar Malls’ ambitious expansion plans include the opening of a dedicated retail district in Dubai Creek Harbour, directly linked to the magnificent tower that forms the waterfront development’s centerpiece.
The Dubai Mall’s Fashion Avenue is also being expanded by one million sqft built-up area delivering over 600,000 sqft GLA. The Dubai Mall will be further expanded with plans for a Boulevard and Fountain Views extension. Emaar Malls is also developing the Springs Village with over 245,000 sqft GLA, defining its strengths in community retail.
Currently Emaar Malls has a total GLA of about six million sqft. Its assets include malls like The Dubai Mall and Dubai Marina Mall; specialty retail such as Souk Al Bahar and Gold & Diamond Park; and community retail including Mohammed bin Rashid Boulevard Retail, Dubai Marina Retail and shopping centres in Emaar’s residential developments.