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Mon 31 Mar 2014 12:07 PM

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UAE's MAF records 11% rise in 2013 pre-tax profit

Mall of the Emirates operator reported overall group revenue rose 10% to $6.26bn in 2013

UAE's MAF records 11% rise in 2013 pre-tax profit

UAE shopping mall, retail and
leisure company Majid Al Futtaim (MAF) has recorded an 11 percent increase in
pre-tax profit to AED3.3bn ($898m) in 2013 on the back improved profitability
in the company’s shopping malls and hotels , the company announced on Monday.

Releasing the  audited
financial statement for the year to December 31, MAF said its earnings
before interest, depreciation, taxes and amortisation (EBIDTA) result was
influenced by 14 percent growth in its properties business as well as its
retail division, which grew by six percent over 2012.

However, net profit was down 0.6
percent to AED1.94m ($528,000) compared to AED1.95m ($531,000) in 2012 in what
it attributed to “lower revaluation gains” on its investment properties.

As per MAF’s January announcement,
overall group revenue was up 10 percent year-on-year to AED23bn ($6.26bn) in
2013.

The MAF directors’ report
released on Monday said the retail business grew by three percent, while it
also benefited from higher rents from malls and improved hotels RevPAR,
increased cinema admissions and Magic Planet transactions.

Among its activities in 2013,
MAF said it opened Beirut City Centre, Majid Al Futtaim’s first shopping mall
in the Levant region, a new hotel in Bahrain, eight new Carrefour hypermarkets
and 10 supermarkets, four cinema sites, three family entertainment sites and
its first healthcare clinic in the UAE.

The unlisted firm said in 2013
it purchased a 25 percent minority stake owned by Carrefour S.A. in Majid Al
Futtaim Hypermarkets LLC for AED2.55bn ($694m).

It also issued CEEMEA’s first
ever USD denominated corporate hybrid bond , while improving its debt
profile with “significant reduction in secured debt to less than 10 percent of
total debt and early refinancing of maturities via syndication of a $1.6bn (AED
5.9bn) revolver line”.

MAF
Holding CEO Iyad Malas said: “2013 was a year of solid top line growth for the
business. Revenue growth remained stable at 10 percent year-on-year, while
EBITDA grew (by) 11 percent, reflecting strong performance across all parts of
the business. We not only delivered robust business results but have also
increased efficiency by uniting our companies under one umbrella corporate
brand – Majid Al Futtaim – as we embark on the next chapter of our regional expansion
plans.”

Last year, the company
unveiled a new branding after announcing a $5bn, five-year investment strategy
across the Middle East.

In January MAF said it will invest another AED3bn
($816.7m) over the next five years to expand its business in the emirate,
seeking to take advantage of a trade and tourism boom at its home base.

MAF, which owns and operates 12 shopping malls in the
MENA region, including the Mall of Emirates, is expanding aggressively in the
Middle East and aims to double the size of its business by 2018.

The company currently also has among its AED39bn asset
portfolio 56 hypermarkets and 53 supermarkets as part of the Middle East
Carrefour franchise; 92 VOX Cinema screens and 16 Magic Planets as well as the
famous Ski Dubai and iFly Dubai entertainment facilities.

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