DUBAI – Emaar Malls, the shopping malls and retail business division of real estate developer Emaar Properties, reported first-quarter net profits of $118 million, up 32 percent over the same three-month period in 2014.
Revenues from its mall and retail assets were $200 million, 21 percent higher than in first-quarter 2014, when they amounted to $165 million.
Tenant sales across Emaar Malls were more than $1.4 billion, with $1.2 billion coming from the Dubai Mall, the group’s flagship property and the world’s largest retail and entertainment destination. The Dubai Mall had 31 million visitors during the first three months of 2015, 7 percent more than during the same prior-year period.
Tenant sales across Emaar Malls were reported as $1,365 per square foot of gross leasable area (GLA). Emaar Malls witnessed significant growth of 26 percent on base rent renewal rates for leases renewed in first-quarter 2015 across all its malls and retail assets. With a total GLA of about 6 million square feet, Emaar Malls has GLA occupancy rate of 96 percent.
Mohamed Alabbar, chairman of Emaar Malls and Emaar Properties, said following its successful initial public offering 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.”
The Dubai Mall’s Fashion Avenue area, which houses luxury fashion brands, is undergoing an expansion of 1 million square feet in order to accommodate the demand for space. After the expansion that is expected to be complete in 2016, the leasable area of the mall will increase by 15 percent and bring more than 150 new brands to the mall.