|11 June, 2019

Emirates REIT’s Q1 net profit falls to $1.6mln

Net profit of Emirates REIT fell to $1.6 million in Q1-19

Emirates Towers, Dubai, UAE. Image used for illustrative purpose.

Emirates Towers, Dubai, UAE. Image used for illustrative purpose.

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UAE – Mubasher: Dubai-based Equitativa Limited, the largest REIT manager in the GCC and manager of Emirates REIT (CEIC) Limited, on Tuesday announced Emirates REIT unaudited financial results for the first quarter of 2019.

Net profit of Emirates REIT fell to $1.6 million in Q1-19 from $10 million in the year-ago period due to the absence of valuation gains, according to a press release.

Portfolio value of Emirates REIT rose by 8% in the three-month period ended 31 March 2019 to $941 million, and its net asset value (NAV) stood at $510 million or $1.70 per share.

Equitativa also reported an 8.4% year-on-year increase in Emirates REIT’s total property income to $17.9 million during Q1-19 from $16.5 million.

“This increase in Total Property Income was led by the organic increase in occupancy in Index Tower and the two acquisitions completed in 2018,” Equitativa highlighted.

Furthermore, Office Park occupancy surged to 90% from 86% in the first three months of 2019 and Index Tower Offices occupancy jumped to 52% from 47%.

“The overall Index Tower annualised rent increased by 38% year-on-year,” Equitativa added.

Funds from operations (FFO), excluding revaluation movements, remains flat at $3.3 million as at end of March 2019.

In the same vein, Equitativa recommended the distribution of $0.04 per share dividend for the full-year 2018, which shall be distributed by 30 June 2019.

“Upon approval of the Shareholders during the Annual General Meeting 2019, the shareholders on the register on 13 June 2019 will be able to benefit from this dividend distribution,” the company indicated.

Accordingly, the shareholders will receive $0.08 per share in dividend for 2018.

Sylvain Vieujot, chairman of Equitativa, said: “Equitativa’s strong active asset management of Emirates REIT’s portfolio and the completion in 2018 of two high yielding acquisitions have ensured the stabilisation of the portfolio in a challenging property market.”

“We continue to maintain and grow occupancy in our main assets. The soft opening of Index Mall in June 2019 and the opening of DIFC’s Gate Avenue are driving strong tenants interest to Index Tower which should contribute to a continued growth of income in 2019,” Vieujot added.

Source: Mubasher

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