Tuesday, Jan 24, 2012
Gulf News
Dubai With revenues up 10 per cent to Dh18.7 billion in 2011, Majid Al Futtaim Holding (MAF) achieved its best results since inception in 1992.
“In particular, strong performance in Dubai helped to offset any softness resulting from regional turmoil,” Iyad Malas, CEO of Majid Al Futtaim Holding, which launched a $1 billion (Dh3.67 billion) sukuk this month, said. It followed a $2 billion Reg S EMTN programme filed with the London Stock Exchange last June.
“We are constantly looking into options to diversify our sources of long-term funding,” Malas added. “Having set up the EMTN and sukuk programmes, we can now wait for the right market conditions and choose whether to issue a sukuk or a conventional bond.
Strong liquidity
“The company has a strong liquidity position to amply cover its needs for at least the next 18 months, and is under no pressure to do any issuance before the conditions are favourable to do so.”
Both its core operations — mall development and management as well as full-scale retail ventures — generated handsome returns last year.
Majid Al Futtaim Properties, the operating arm for the malls, achieved revenue gains of 21 per cent to Dh2.8 billion.
Moreover, of the group’s gross earnings before interest, taxes, depreciation and amortization (Ebitda) of Dh2.7 billion, MAF Properties contributed 62 per cent. (The Ebitda measure offers an overview of a company’s operational cashflow situation.)
Majid Al Futtaim Retail, the unit which holds an exclusive 75 per cent interest in the Carrefour franchise across the region, saw a significant rise in sales during 2011 to Dh15.2 billion. Its Ebitda measure was up 20 per cent to Dh927 million and contributed 34 per cent of the group’s tally on this score.
The third arm, Majid Al Futtaim Ventures, which is responsible for developing new businesses, saw revenues of Dh1 billion and an Ebitda of Dh168 million.
“Diversification across business segments and geographies has been a key driver in ensuring strong operating performance,” Malas said.
Two malls this year
“We continue to focus on a prudent and sustainable growth strategy. Within the coming 12 months, we will complete the construction of two shopping malls (Fujairah City Centre and Beirut City Centre), and expect to start construction in Cairo at our Mall of Egypt project. We will also progress our strong development pipeline of new shopping malls.”
At the end of 2011, Majid Al Futtaim Holding had assets valued at over Dh35 billion and a net debt of around Dh7.5 billion. Both Standard and Poor’s and Fitch Ratings assigned it an investment-grade rating of BBB — the highest credit rating assigned to a privately held corporate in the Middle East.
Dh18.7b
MAF’s revenue for 2011
$1b
value of sukuk launched by MAF in January
Dh7.5b
net debt of MAF Holding at the end of 2011
Staff Report
Gulf News 2012. All rights reserved.
