Emaar Malls reports 69% dip in net profit for H1 2020

Mall occupancy remains stable at 92 per cent

Emaar Malls has registered a net profit of Dhs345m ($94m) in the first half of 2020, marking a dip of nearly 69 per cent from Dhs1.130bn ($308m) in H1 2019, it announced on August 11.

The developer of shopping malls and retails assets, Emaar Malls also reported revenue of Dhs1.657bn ($451m) for the first half of the year, posting a 25.5 per cent decline from Dhs2.227bn ($606m) during the year-earlier period.

Occupancy levels across Emaar Malls’ assets – The Dubai Mall, Dubai Marina Mall, Gold and Diamond Park, Souk Al Bahar and the Community Retail Centres – remained stable at 92 per cent.

Meanwhile, Emaar Malls continued its growth through omnichannel retailing – Namshi, the regional e-commerce fashion and lifestyle platform, which was fully acquired by Emaar Malls in 2019, recorded half-yearly revenue of Dhs664m ($181m), 57 per cent higher than the same period last year.

Read more: Dubai’s Emaar Malls fully acquires online fashion retailer Namshi

As part of Emaar Malls’ commitment to extend support to its tenants, it also implemented a flexible rent relief policy during Covid-19-induced lockdown (March 25 – April 27) and post-lockdown (April 28 – August 31) periods. The policy included a tiered base rent waiver for its tenants.

Mohamed Alabbar said: “I firmly believe that Emaar Malls’ results showed strength and resilience in the face of the challenges presented to us by the pandemic. Our continuous innovation, diversification of our portfolio and investment in digital to bring our destinations to life in new channels added further strength to our results.”

“We are continuing to provide our visitors with the safest mall destination experiences in the world, and by also reducing our operational costs and supporting our tenants, we are positive about future market conditions and look forward to continued progress as tourism is welcomed to the UAE once again,” he added.

In terms of safety, Emaar Malls has also included thermal cameras and artificial intelligence software that work together to monitor visitors’ temperatures. Additionally, contactless payments, deep cleaning and disinfection, strict social distancing regulations, mandatory masks, extensive staff training, and other preventative measures were put in place.

The Dubai Fountain show also reopened to entertain customers from June 5, 2020, with strict health and safety measures in place to ensure visitors’ wellbeing.

Gulf Business. August 12, 2020