MAF Holding’s revenue grows by 10% to Dhs19.6B

Majid Al Futtaim Holding, the leading shopping mall, retail and leisure pioneer across the Middle East and North Africa, released on Monday its audited financial statements for the full year ended Dec.31, 2011. The company’s gross revenues reached Dhs19.6 billion, a 10 per cent increase on 2010, at the same time its Ebitda from recurring operations grew by 19 per cent year-on-year to reach over Dhs2.8 billion. Total assets are valued at Dhs36.1 billion and a net debt of Dhs7.6 billion. In February, the company issued a successful $400 million Sukuk. The Sukuk was four times oversubscribed, with well-diversified participation from regional and international investors. Iyad Malas, CEO of Majid Al Futtaim Holding, said: “Our success in 2011 has fortified our foundation to further develop the business in both new and existing markets. We have diversified our funding sources and will continue to strengthen our financial profile in line with international best practices.  Our efforts have been evidenced in the credit assessments of the rating agencies and in the success of our pioneering public debt issuance.”   Majid Al Futtaim Properties saw its revenue increase by a strong 19 per cent to Dhs2.8 billion and Ebitda rise by around 20 per cent to Dhs1.7 billion, contributing about 61 per cent of the group’s Ebitda. Majid Al Futtaim Retail saw a significant rise in sales during 2011, with revenues rising to Dhs16.3 billion. The business’ Ebitda rose by 22 per cent to Dhs957 million and contributed 34 per cent of the group’s Ebitda. Majid Al Futtaim Ventures achieved positive operational growth contributing a revenue of Dhs724 million, with an Ebitda of Dhs156 million. New loans Majid Al Futtaim Holding (MAF) has agreed terms for a new $500 million loan to fund a shopping centre in Egypt where the mall developer had to take writedowns after Arab Spring protests, its chief executive said on Monday. MAF, the sole franchisee of Carrefour hypermarkets in the Gulf, said it took writedowns of Dhs300 million ($81.68 million) on its hotel assets in Bahrain and Dhs250 million on its Egypt assets in 2011, Iyad Malas said.   “There was an adjustment of value of assets both in Bahrain and Egypt,” he told reporters, adding the firm had to write down valuations of two hotels built adjacent to Bahrain City Centre. “Based on the lower occupancy rates we see at this stage at Bahrain, we decided to write the value of these assets down.” However, he said that the value of these assets has gradually increased now. In Egypt, MAF is developing the Mall of Egypt project in Cairo, a 160,000-square metre site in Cairo, which will be one of North Africa’s largest shopping centres. Malas said the company is in the final stages to secure finance for the project.