Emirates Reit portfolio value crosses Dh3B
dubai — Emirates Reit Limited, the world’s largest Shariah-compliant real estate investment trust, said on Wednesday that its portfolio value crossed the Dh3 billion mark during the third quarter following the acquisition of the European Business Centre in Dubai Investments Park.
The company, managed by Dubaibased Equitativa, said in the third quarter, portfolio value surged 13.9 per cent to $844.6 million, from $741.6 million a year earlier. The net asset value increased to $1.73 per share, or $519.4 million from $1.60 per share or $480.7 million a year ago. Revaluation gains in the first nine months of 2017 were $37.6 million, a 38 per cent increase from Dh27.4 million in the same period last year, reflecting the increase in the value of the properties.
Rental income for the first nine months of 2017 saw a 21.5 per cent increase to Dh39.3 million, from $32.4 million reported in the same period last year. “This was mainly driven by incremental leasing of office units at Index Tower, as well as income from Jebel Ali School and British Columbia Canadian School. Service fees and other income also increased during the period to $4.6 million from $4.0 million in the same period in 2016.
Emirates Reit said while rental income rose 21.4 per cent to $13.9 million, service fees and other income were up 35 per cent to $1.7 million, leading to $15.6 million in property income, compared to $ 12.7 million in the same 2016 period. Net profit for the first nine months of 2017 was $49.9 million, a year-on-year increase of 42.2 per cent. In the third quarter 2017, the company reported a steep increase in net profit — up 178.8 per cent — to $31.6 million. Total occupancy across the portfolio reached 84 per cent and the weighted average unexpired lease term was 7.7 year, Emirates Reit said. Sylvain Vieujot, CEO of Equitativa Dubai, said the continued positive results are a true testament to the strong fundamentals of the prime assets the company owns. “With our recent acquisition of the European Business Centre, we saw our portfolio value cross Dh3 billion — another important milestone in the growth of the Reit. The period also marked the delivery of British Columbia Canadian School, on budget and in less than a year, strengthening our track record in the education sector. We remain focused on maintaining the momentum across the business as we continue to explore acquisition opportunities that would further strengthen our portfolio to deliver maximum value for our shareholders,” said Vieujot.
— issacjohn@khaleejtimes.com