Emaar Malls, majority-owned by Emaar Properties, on Tuesday reported net profits of Dh586 million for the period ending 30 September 2020 as compared to Dh1.73 billion for the same period last year, despite the challenges posed by the Covid-19 pandemic.
It reported revenue of Dh2.493 billion for the first nine months of 2020 (January to September).
With the footfall gradually normalising and the upcoming holiday season, the outlook for the remainder of the year remains positive.
“Emaar Malls continues to show incredible strength and resilience during the pandemic, despite the challenging year for everyone in the retail industry… We have worked with retailers to make sure the shopping experience is safe and enjoyable, which includes abiding by the measures set out by the Dubai Government. The result is that we see visitors returning to the malls in higher numbers,” said Mohamed Alabbar, Founder of Emaar Properties and Emaar Malls.
How it will be done
Emaar Malls’ shareholders (excluding Emaar Properties) will receive 0.51 Emaar Properties’ shares for every one share. “This represents a premium of 7.1 per cent to the closing price of Emaar Malls on March 1, the last trading day prior to this announcement, and a premium of 11.2 per cent to the market implied exchange ratio based on volume weighted average prices over the last one month to March 1,” a statement issued by the developer said.
The merger is subject to a number of conditions, including the approval by the shareholders of Emaar Properties and Emaar Malls.
The proposal has been approved by board of directors, and is being done to “reinforce Emaar Properties’ position as MENA’s largest integrated and diversified real estate company,” the Dubai developer said in a statement. It will also ensure both are “strategically positioned to capture opportunities in the marketplace and drive shareholder value”.
The merger is now subject to a number of conditions, including the approval by the shareholders of Emaar Properties and Emaar Malls.
As part of the transaction, the existing business of Emaar Malls will be reconstituted in a wholly owned subsidiary of Emaar Properties. It will continue to develop and hold a portfolio of shopping malls and retail assets.
Emaar Malls closed Tuesday (March 2) at Dh1.69, down by a fil. Emaar Properties, which will remain listed on Dubai Financial Market, was up six fils to Dh3.63.
The announcement came on the same day as Meraas made further progress in taking complete ownership of DFM-listed theme park operator DXB Entertainments. In Saudi Arabia, National Commercial Bank and Samba confirmed the combined entity will launch on April 1.
Emaar Malls has also extended its Rent Relief Policy for all of its tenants until the end of the year.
“We remain optimistic about the immediate future of the retail industry in Dubai during the remainder of 2020 and look forward to seeing tourists and visitors slowly return to the high numbers we’re accustomed to. In the long-term, we are confident that 2021 will see us grow our business once again,” he added.
Occupancy levels across Emaar Malls’ assets – The Dubai Mall, Dubai Marina Mall, Gold & Diamond Park, Souk Al Bahar and the Community Retail Centres – remained stable at 91 per cent.