|By TAP Staff| Emaar Malls , the shopping malls and retail business majority-owned by global property developer Emaar Properties, records net profit of AED 433 million (US$ 118 million) during the first quarter (January to March) of 2015. This is 32 per cent higher than Q1 2014 net profit of AED 329 million (US$ 90 million). The revenue during Q1 2015 across all its mall and retail assets is AED 735 million (US$ 200 million), 21 per cent higher than Q1 2014 revenue of AED 605 million (US$ 165 million).
The assets of Emaar Malls which includes, The Dubai Mall, its flagship mall and the world’s largest retail and entertainment destination, welcomed over 31 million visitors during Q1 2015, 7 per cent higher than the same period last year.
Tenant sales across Emaar Malls was over AED 5.2 billion (US$ 1.4 billion) with AED 4.6 billion (US$ 1.2 billion) from The Dubai Mall similar to 2014 tenant sales. Emaar Malls tenant sales was AED 5,015 per sq ft of leasable area, marginally higher compared to the same period in 2014. Emaar Malls witnessed significant upside of 26 per cent on base rent renewal rates for leases renewed in first quarter 2015 across all its malls and retail assets.
Mohamed Alabbar, Chairman of Emaar Malls and Emaar Properties, said: “Following its successful IPO and listing on the Dubai Financial Market, Emaar Malls is now focused on its next level of growth through aggressive expansion in Dubai and international markets. Our malls business is a strong contributor to Emaar’s recurring revenues, and we are committed, more than ever, to creating sustained value to our stakeholders through innovative approaches to retail, leisure and entertainment.”
He added: “The robust performance of Emaar Malls assets in Dubai during the first quarter was led by the positive growth of the city’s retail sector, which was catalysed by the Dubai Shopping Festival, the growth in tourism and round-the-year activation initiatives in The Dubai Mall. We will continue to build on this positive momentum and focus on delighting visitors from around the world.”
With a total GLA of about 6 million sq ft, Emaar Malls has GLA occupancy rate of 96 per cent. Emaar Malls is expanding The Dubai Mall’s Fashion Avenue, which brings the largest number of high-end international fashion brands under one roof, by one million sq ft built up area to welcome a larger assortment of leading fashion brands. The leasable area, through this expansion, is about 15 per cent of the current mall and is expected to be completed in 2016. Other assets under Emaar Malls include Dubai Marina Mall, Souk Al Bahar and Gold & Diamond Park, as well as community shopping centres.