Equitativa Dubai eyes $54mln real estate deals for Emirates REIT by 2020

Emirates REIT is the world's largest shariah-compliant REIT and is listed on Nasdaq Dubai.

  
Image used for illustrative purpose. Looking along Sheikh Zayed road towards the business district and Burj Khalifa.

Image used for illustrative purpose. Looking along Sheikh Zayed road towards the business district and Burj Khalifa.

Getty Images

Equitativa (Dubai), the largest Real Estate Investment Trusts (REITs) manager in the GCC and manager of Emirates REIT is looking at investing up to $54.4 million (200 million dirhams) in new real estate acquisitions in several sectors for Emirates REIT by early 2020.

Emirates REIT is the world’s largest shariah-compliant REIT and is listed on Nasdaq Dubai.

The announcement followed the company's announcement of its first half results for 2019, which revealed that Emirates REIT witnessed an increase of 9.1 percent in its net property income, compared to the same period last year.
It also reported an increase of 13.5 percent in EBITDA for the same period, despite challenging market conditions and a profit of more than 4 million dirham for the period, despite market revaluation of real assets, breaking the trend in the sector.

Sylvain Vieujot, CEO of Equitativa Dubai, commented: "Our portfolio enjoys a stable occupancy due to our active management and the quality of the assets. We are now in an active acquisition mode and are considering a number of transactions that will boost Funds from Operations (FFO), which remained stable for the period."
The first half of this year saw an overall improvement in the portfolio efficiency of Emirates REIT, including a decrease of 5 percent in fund expenses, improvement in receivables, and a stable occupancy rate of 75 percent.

(Writing by Seban Scaria seban.scaria@refinitiv.com)

Our Standards: The Thomson Reuters Trust Principles

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2019

More From Islamic Finance