Majid Al Futtaim, a mall and community developer, earned Dh18 billion in the first half of 2022. The property division of the company contributed Dh2.4 billion, representing a 51% year-over-year increase. The majority of the top line is still provided by the retail segment, which brought in Dh14.4 billion, up 9%.
The Group, which has a major presence in the Middle East, recorded revenues of Dh15.6 billion and EBITDA of Dh1.6 billion at the same time last year. The group’s H1 EBITDA for this year is Dh1.9 billion.
The majority of the top line is still provided by the retail segment, which brought in Dh14.4 billion, up 9%. However, the EBITDA in the retail sector fell by 9% to Dh567 million, a sign of the challenging trading conditions regional markets are facing due to inflation biting and consumers being cautious.
Even still, tenant sales at the group’s malls rose by 21%, and overall foot traffic surged by 20% to 100 million visits from the previous year. The top line for the hotel portfolio totaled Dh333 million in the first six months, “driven by a reduced base of 2021 due to capacity limits.” The average occupancy rate and RevPAR (Revenue Per Available Room) both increased by 142% and 43%, respectively.
“While our region is not immune to building global inflation and supply chain pressures, Majid Al Futtaim remains optimistic towards the broader economic outlook,” said Alain Bejjani, CEO of Majid Al Futtaim – Holding. “Our prudent financial discipline and strong governance ensure our resilience in the face of any immediate impact while ensuring we are well-positioned to remain focused on sustainable value creation.”
When compared to the prior year, the foot traffic to shopping malls climbed by 20% to 100 million visits, and tenant sales increased by 21%. The revenue for the hotel portfolio increased to AED 333 million in the meantime, driven by a reduced base of 2021 because of capacity constraints. Both average occupancy rates and RevPAR (Revenue Per Available Room) increased by 142% and 43%, respectively.