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MAJID AL FUTTAIM-
Majid Al Futtaim saw its net income dip 6% y-o-y to AED 1.59 bn in 1H 2024, according to its financial statements (pdf). Revenues also declined 6% y-o-y during the six-month period to AED 16.73 bn.
The retail segment dragged down the performance: Majid Al Futtaim’s retail revenue fell 11% y-o-y to AED 11.61 bn on the back of “declining basket size resulting from dampened consumer sentiment following geopolitical conflict in the region and the impact of currency devaluation in Egypt and Kenya,” the conglomerate said in its earnings release.
The conglomerate’s property unit had a good half, with revenues climbing 9% y-o-y to AED 3.72 bn, which was attributed to growth in revenues from the group’s UAE shopping malls and the robust sales of the Tilal al Ghaf residential development, which raked in over USD 900 mn in gross sales, according to Majid Al Futttaim’s earnings presentation (pdf).
EMIRATES REIT-
Emirates REIT’s bottom line rose 37% in 1H: Emirates real estate investment trust (REIT) saw its net income increase 37% y-o-y in 1H 2024 to USD 63.5 mn on the back of portfolio fair value growth, according to the company’s earnings report (pdf). The REIT recorded USD 40.4 mn in total income from property, up 12% y-o-y, driven by growing occupancy levels and higher rates.
Emirates REIT’s profitability was dented by higher borrowing costs, with the company booking a loss of USD 1.5 bn in funds from operations in 1H 2024.
Looking ahead, the REIT aims to “achieve optimal capital structure and capital deployment and look to rationalize existing debts to move towards positive funds from operations,” by capitalizing on high occupancy rates across its portfolio, the firm’s chairman Abdulla Al Hamli said.
WATCH THIS SPACE- Emirates REIT’s manager Equitativa is considering refinancing options to boost profitability, including a potential new sukuk issuance and divesting some of its assets, the company said. The move comes after the trust extended the maturity date of a USD 380 mn sukuk by one year in June.
ICYMI- Emirates REIT’s manager Equitativa redeemed USD 19.27 mn of the REIT’s USD 380 mn sukuk certificates earlier this month after selling the Trident Grand Mall, bringing its outstanding sukuk to USD 304.73 mn.
BINGHATTI-
Dubai-based real estate developer Binghatti Holding saw its net income nearly double to AED 667.5 mn in 1H 2024, according to its financials (pdf). Revenues for the same period increased 154.2% y-o-y to AED 2.19 bn.
