Emaar Malls net profits up 17% to Dh376m

Abu Dhabi: Emaar Malls, a subsidiary of Dubai-based developer Emaar Properties, on Wednesday reported Dh376.4 million in net profits in the third quarter of this year, marking a 17 per cent increase from the Dh321.2 million reported in the same quarter last year.

The figure brings the company’s net profits for the first nine months to Dh1.2 billion — a 30 per cent increase from the Dh938 million recorded in the same nine months in 2014.

The Q3 net profits, while higher than those in Q3 2014, are below analysts’ expectations, with EFG Hermes having projected a quarterly net profit of Dh387.7 million.

In terms of revenues, Emaar Malls reported Dh728 million for the third quarter of this year, marking a rise from the Dh649.9 million reported in the same quarter last year. This brings the company’s revenues for the first nine months to Dh2.19 billion — up 15 per cent from the Dh1.9 billion in the same nine months in 2014.

The company’s assets also registered an increase to Dh23.9 billion as of September 30, 2015 representing an increase from the Dh22.5 billion recorded on December 31, 2014.

Tenant sales across Emaar Malls’ portfolio reached Dh13.5 billion, including Dh11.8 billion at The Dubai Mall.

“Through a diverse calendar of activities, we have focused on strengthening footfall, which has been further catalysed by the committed efforts of the government to boost the retail and leisure sector.

We are committed to create a long-term value to our stakeholders, and to achieve this, we are rolling out innovative retail approaches such as launch of The Souk, our community malls, and the expansion of The Dubai Mall, the world’s most-visited retail destination,” said Mohammad Al Abbar, chairman of Emaar Malls Group.

All shopping mall assets of Emaar Malls, including the Dubai Mall, recorded total visitor footfall of 90 million during the first nine months of 2015 compared to 81 million in the same period last year (an 11 per cent increase).

According to the company’s financial statement, Emaar Malls saw a total of Dh1.3 billion in profits from its super regional and regional malls alone in the first nine months of this year. The figure is an increase from the Dh1.05 billion from the same segment in the first nine months of 2014.

Meanwhile, its community retail segment brought in Dh102 million in profits in the first nine months — up from the Dh93 million generated in the same time last year.

On Wednesday, the company’s shares, which are listed on the Dubai Financial Market (DFM), fell 0.97 per cent to reach Dh3.05.