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- Emaar Malls profit plunges 69% to US$94 million in first half of 2020
Emaar Malls profit plunges 69% to US$94 million in first half of 2020
Coronavirus pandemic and subsequent lockdown caused a 69.48 percent fall in the net profits of Emaar Malls to Dh345 million (US$94 million), in the first half of 2020, compared to Dh1.13 billion (Dh308 million) recorded in the corresponding period last year.
Shopping malls in Dubai were closed down for nearly two months from March 25, 2020, that caused massive losses in sale. As part of Emaar Malls’ commitment to extend support to their tenants, Emaar Malls also implemented a flexible rent Relief Policy in respect of the lockdown (March 25 – April 27) and post-lockdown (April 28 – August 31) periods. The Relief Policy included a tiered base rent waiver for its tenants.
The shopping malls and retail subsidiary of Emaar Properties’ revenue also declined 25.57 percent to Dh1.65 billion (US$451 million) in the first half of 2020, compared to Dh2.27 billion (US$606 million) recorded in the first half of 2019.
“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 on 2019 levels,” the company said. “The strong 92 per cent occupancy in the face of the crisis demonstrates Emaar Malls’ commitment to its partners. A steady return to footfall across the group’s mall assets was also noted due to their prioritisation of its visitors’, tenants’ and employees’ wellbeing.”
Mohamed Alabbar, Chairman of Emaar Malls, 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. By driving The Dubai Mall into new channels at speed to serve our customers rapidly changing needs, and, by using digital immersive experiences to engage the customer and stay connected during these challenging times, we can look ahead to the future with even more confidence”.
“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 forwards to continued progress as tourism is welcomed to the UAE once again”, he added.
Emaar Malls continued its growth through omnichannel retailing with a significant contribution to its revenue achieved through Namshi, which was fully acquired by Emaar Malls in 2019. The regional e-commerce fashion and lifestyle platform recorded half-yearly revenue at Dh664 million (US$181 million), 57 per cent higher than the same period last year. Its success in the first half of 2020 was attributed to the higher rate of online shopping, coupled with exponential growth in the Saudi market.
Emaar Malls has enhanced their already high health and safety standards with the inclusion of 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 in line with the globally praised safety standards set by the UAE Government.
In line with its strategy to further develop its Community Retail Centres, Emaar Malls is redeveloping the Meadows Village to increase its GLA by approximately 95,000 square feet scheduled for completion in 2020.