Majid Al Futtaim (MAF) Holding, the UAE-based developer behind three of Dubai’s largest malls, said revenue in the first half of 2012 rose 15 percent year-on-year to AED10.7bn on the back of recovering tenant sales in markets such as Bahrain and Egypt
The mall operator’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) grew 17 percent year-on-year to over AED1.5bn (US$408m), while total assets amounted to AED37bn, it was announced on Monday.
Iyad Malas, CEO of Majid Al Futtaim Holding, attributed the positive balance sheet to a recovery in revenue from markets previously impacted by the fallout from turbulence during the Arab Spring demonstrations.
“2012 has already been a successful and busy year for us. We have seen turnarounds in markets previously impacted by the Arab spring, with tenant sales increasing about 44 percent in Egypt and about 23 percent in Bahrain, in the first half of the year,” he said.
In the UAE, where MAF Holding opened its 11th shopping mall in Fujairah in April, saw tenant sales grew by 13 percent.
Majid Al Futtaim Properties, the division which owns and operates the group’s portfolio of 11 shopping malls and 10 hotels in the MENA region, accounted for 64 percent of the group’s overall EBITDA and saw revenue for the period rise 16 percent to AED1.5bn.
“Our shopping mall strategy remains focused on strengthening our regional shopping mall presence, with developments in both Lebanon and Egypt moving forward and strategic opportunities in the Kingdom of Saudi Arabia, Abu Dhabi and Azerbaijan under review,” Malas said.
Majid Al Futtaim Retail, which operates 50 hypermarkets and 44 supermarkets in 12 countries as part of a joint venture with French retailer Carrefour, accounted for 31 percent of the group’s EBITDA and saw its revenue increase by 15 percent year-on–year to AED8.9bn.
During the period, the division opened six new Carrefour hypermarkets and also launched its first store in Iraq. “We are continuing expansion of the Carrefour franchise, with plans to open two additional hypermarkets in the remainder of 2012, including our first store in Georgia this month,” Malas added.
The group’s third division, Majid Al Futtaim Ventures, which develops, owns and operates leisure and entertainment such as Ski Dubai, VOX Cinemas, Magic Planet and iFly, saw its revenue increase 11 percent to AED388m.
The group issued a seven year US$500m bond in July 2012, which will help to cover its financing requirements for over two years, the company said in its financial statement issued on Monday.