Equitativa, the largest real estate investment trust manager in GCC, has announced that the Emirates REIT (CEIC), which is being managed by the firm, has reported robust nine-month results buoyed by Dubai’s thriving commercial real estate market.
The REIT delivered another strong set of results buoyed by Dubai’s thriving commercial real estate market, a stable economic environment in the UAE, and positive regulatory reforms that continue to attract new businesses to the country, said the company.
Its net profit increased by 40% year-on-year to $69 million, driven by an unrealized gain on portfolio revaluation of $61.5 million during the period.
The continued demand for premium office space enabled Emirates REIT to increase occupancy across its portfolio to 81.9% as at September 30 a 13.6 percentage point increase year-on-year.
Average rents across its commercial and educational portfolio continue to increase quarter-on-quarter by 2.8% and 2.3%, respectively, it stated.
The REIT reported total property income of $50.3 million in nine months, compared to $52.2 million in the same period last year.
On a like-for-like basis, excluding the impact of the one-off gain / loss on disposal of investment property derived from the sale of half a floor in Index Tower in 1H 2021 and the sale of Jebel Ali School in 1H 2022, Total Property Income increased by 13.2% year-on-year, reflecting the underlying strength of the REIT’s portfolio.
The REIT maintained a strong focus on cost optimisation and discipline, resulting in a 4.8% year-on-year decline in Property Operating Expenses to $9.2 million in 9M 2022.
Consequently, net property income for the nine-month period was $41.1 million over $42.5 million last year. Excluding the impact of the aforesaid one-off gain / loss on disposal of investment property, net property income increased 18.1% year-on-year.
On Emirates REIT’s performance, Equitativa CEO Thierry Leleu said: "Emirates REIT maintained its robust growth trajectory during the first nine months of 2022, demonstrating the quality of our assets and our ability to generate value from the continued positive market conditions in the UAE."
"The REIT’s net profit increased 39.9% year-on-year to $69 million, supported by the upward revaluation of our property portfolio," stated Leleu.
"The active and disciplined management of our portfolio and value-added services for our tenants supported a 13.6 percentage point increase in like-for-like occupancy across our portfolio to 81.9% during the period, underscoring our ability to deliver consistent, long-term returns," he added.