Emaar Malls Profit Climbs 22 Percent on Higher Rental Incomeby
Emaar Malls, the shopping center unit of Dubai’s biggest property developer, reported a 22 percent increase in first-quarter profit as rental income surged.
Net income rose to 529 million dirhams ($144 million) from 433 million dirhams a year earlier, according to a statement the Dubai Mall owner posted on the stock exchange website. Rental income gained to 833 million dirhams, an increase of 14 percent compared with a year earlier, while occupancy levels at its malls and the number of visitors were comparable to the first quarter of 2015.
Parent company Emaar Properties PJSC implemented “severe cost cuts” in response to weakening housing demand at the end of last year, Mohamed Alabbar told reporters on the sidelines of a shareholders meeting in Dubai last week. Since then it has been “pleasantly surprised” with first-quarter sales, he said.
More than 31 million people visited the company’s malls in the first quarter, with 20 million people visiting Dubai Mall, the company said in the statement.