Revenue – AED774mn, +6.3% Y-o-Y, -1.4% Q-o-Q, +0.3% vs. EFGe EBITDA – AED576mn, +8.4% Y-o-Y, -4.1% Q-o-Q, +0.9% vs. EFGe Net income – AED435mn, +15.6% Y-o-Y, -5.1% Q-o-Q, +3.1% vs. EFGe Emaar Malls Group (EMG) has reported its 3Q16 headline figures. Results came exactly in line with our estimate, showing 6.3% Y-o-Y growth (+10.7% Y-o-Y in 9M16), while EBITDA margins continued to be strong (3Q16: 74.4%, 9M16: 77.2%). Net income was up 15.6% Y-o-Y in 3Q16 and 17.3% Y-o-Y in 9M16. We note, however, that Y-o-Y quarterly revenue growth in Q3 was the weakest since 1Q15 (save for 4Q15). Footfall and tenant sales numbers are not released, but we expect the weakness in tenant sales seen since 4Q15 to have continued. Our numbers incorporate a 9.3% drop in tenant sales in 2016e and 13% Y-o-Y rise in 2017e as the Fashion Avenue expansion comes on board.   We note that a number of expansionary plans were listed by the company in the earnings release, including i) a dedicated retail district in Dubai Creek Harbour; ii) a boutique mall for high-end brands at Dubai Hills Estate; and iii) additional space at the Meadow. We await feedback on management on the nature, sizes and the timeline for the planned expansionary plans.   We see 20.6% potential upside to our FV, following the stock’s recent price correction. Trading multiples are more compelling at a PER multiple at 14.7x in 2017e and EV/EBITDA of 13.2x for the same year.   Key positives:  i) Revenue came exactly in line with estimate, coming in at AED774mn (+6.3% Y-o-Y, -1.4% Q-o-Q, 0.3% vs. EFGe). 9M16 revenue totalled AED2.4bn (+10.1% Y-o-Y). We expect AED3.3bn in 2016e; ii) Maintained EBITDA margin around/above the 75% mark level. 3Q16 EBITDA margin is at 74.4%, 9M16: 77.2%; iii) Net income met estimate, with a very slight beat (3.1%), coming in at EGP435mn (+15.6% Y-o-Y, -5.1% Q-o-Q). 9M16 net income totaled EGP1.4bn (+17.3% Y-o-Y). Our assumptions incorporate EGP1.9bn in net income for 2016e (+14.3% Y-o-Y); and iv) Occupancy rates continue to be strong, averaging 96% for the EMG portfolio in 3M16 and 9M16, unchanged Y-o-Y. Key negative:  Weakest Y-o-Y revenue growth since 1Q15 (save for 4Q15). (Company, Mai Attia, Sara Boutros)   Emaar Malls (DU): AED2.60 as of 6 Nov 2016, Rating: Buy, FV: AED3.13/share, MCap: USD9,150mn, EMAARMLS UH / EMAA.DU