27 October 2015
Dubai - Emirates REIT
, (NASDAQ Dubai: REIT; ISIN: AEDFXA1XE5D7), today reported net property income of USD 16.0 million and a net profit of USD 10.9 million for the third quarter ended 30 September 2015. Earnings per share in the third quarter 2015 were up 42% to USD 0.0365 compared to the same period last year. For the first nine months of 2015, the net property income was USD 60.7 million and the net profit was USD 46.0 million.
The net asset value of the REIT was USD 454.1 million at the end of the third quarter 2015. The net asset value per share stood at USD 1.52 compared to USD 1.48 for the second quarter 2015 and USD 1.44 at year-end 2014, representing a total annualized return of 14.25% including the dividend of USD 0.08 per share paid out to date in 2015.
"We are pleased with the overall performance during the third quarter," said Sylvain Vieujot, Deputy Executive Chairman of Emirates REIT. "Against a general trend of increased volatility in the real estate sector, Emirates REIT continued to deliver stability and growth. We generated a stable income stream, raised the market value of our assets and increased the occupancy rate across our portfolio."
Investment property increased by 6.9% to USD 657.4 million from USD 615.0 million as at 30 June 2015. This increase was largely driven by the addition of the Jebel Ali School (USD 26.8 million) which was announced in August, and revaluation gains of USD 8.68 million. The revaluation gains in the third quarter 2015 primarily reflect the higher rental rates being achieved at Index Tower. Occupancy improved by 8% year-on-year to a total portfolio occupancy rate of 75% as at 30 September 2015.
So far this year total assets have increased by 14.1% to USD 677.9 million, compared to USD 549.2 million at 31 December 2014. Liabilities increased by 27.6% year-on-year to USD 223.8 million, mainly as a result of an increase in debt to fund the Jebel Ali School project where Emirates REIT is expected to invest a total amount of USD 56.7 million. The loan to value ratio, which is capped at 50%, stood at 31% at 30 September 2015. This leaves additional borrowing capacity of USD 257.6 million to fund the REIT's future growth.
Mr. Vieujot added: "Looking ahead, we are encouraged by the quality and positioning of our property portfolio and the progress we are making on attracting new tenants at Index Tower. Our focus on delivering high-quality office space for our existing and prospective tenants and our ongoing improvements across our assets allows us to achieve rent premia on our competitors. Our additional borrowing capability places us in a strong position to execute on our acquisition strategy, which enables us to further grow the size of the REIT and generate returns for our shareholders through market cycles."
Revenues relating to the recently announced new tenants at Index Tower, a leading pharmaceutical company and a prominent Dubai-based family office, who have leased more than 36,000 square feet of office space, are not yet reflected in the third quarter 2015 results.
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About Emirates REIT
Emirates REIT, the first Shari'a compliant real estate investment trust listed on NASDAQ Dubai, is a Dubai based real estate investment trust established to principally invest in income-producing real estate in line with Shari'a principles. The manager of the REIT is Emirates REIT Management (Private) Limited.
Emirates REIT was established in the DIFC in November 2010 by Emirates REIT Management (Private) Limited. It operates under the Collective Investment Rules ("CIR") of the Dubai Financial Services Authority ("DFSA").
Emirates REIT is categorized as a domestic fund, an Islamic fund, a property fund and a real estate investment trust and benefits from an exclusive Ruler's Decree permitting to purchase properties in onshore Dubai through its onshore Dubai branch.
Emirates REIT has acquired various freehold, leasehold and contractual interests in eight properties all located in Dubai.
The Property Portfolio:
· Building 24 is a low-rise building featuring commercial office and retail space located in Dubai Internet City - a well-established commercial district in Dubai.
· GEMS World Academy Dubai is an education facility located in Al Barsha South, Dubai.
· Jebel Ali School is an education facility located in Akoya, Dubai.
· Index Tower is a mixed-use property located in the DIFC. The REIT's assets in Index Tower consists of the entire retail area located over ground, podium and sky lobby levels, 17 floors of office space and car parking spaces.
· Indigo 7 is a low-rise building located on Sheikh Zayed Road. The REIT acquired a contractual interest in Indigo 7 (similar to tenancy rights) in September 2011.
· Le Grande (Trident Grand Residence Tower Community Mall) in Dubai Marina, consisting of 22 individual retail and F&B outlets.
· Loft Offices (Loft 1, Loft 2 and Loft 3) are a cluster of three low-rise commercial buildings located in Dubai Media City.
· Office Park is a commercial building located in Knowledge Village within Dubai Internet City.
© Press Release 2015