Skip to content Skip to Search
Skip navigation

Emirates REIT in profit after revaluation gain

Emirates' REIT's portfolio includes the Index Tower (centre). Its profit rose 55 percent year on year Alamy via Reuters
Emirates REIT's portfolio includes the Index Tower (centre). Its profit rose 55 percent year on year
  • Profit up 55%
  • Portfolio value up $133m
  • $6m operating loss

Dubai’s Emirates REIT reported a 55 percent rise in annual profit after making a nine-figure revaluation gain on its property portfolio.

A REIT – a real estate investment trust – is a company that owns income-producing assets related to real estate such as buildings, land and real estate securities. 

Through REITs investors can have fractional ownership of major office buildings, shopping malls, hotels, apartment buildings and other forms of commercial real estate.

Emirates REIT owns 10 properties spanning commercial, retail and education facilities. It reported a profit of $127 million in 2023, up from $82 million a year earlier, its annual report shows.

The profit growth was a result of the trust recording a net gain of $133 million on its portfolio value, more than offsetting an annual operating loss of nearly $6 million.

The fund’s operating profit was $44 million but its finance costs and charges were almost $50 million.

Thierry Delvaux, chief executive of parent company Equitativa, said Emirates REIT’s results were “built on a strategy based on asset performance optimisation”.

Emirates REIT’s property income rose 10 percent year on year to $74 million.

Occupancy levels across the fund’s portfolio were at 86 percent, while average rents across its commercial and retail properties rose 10 percent to AED1,809 per square metre.

“We signed a significant number of leases at lower rates during the Covid crisis, which are now coming to maturity,” said Delvaux.

“This should yield substantial additional rental growth in the next few years across the entire portfolio as those are renewed at the current rates.”

Emirates REIT raised $175 million in an April 2014 initial public offering that was priced at $1.36 a share.

The trust owns seven office and retail properties and three education facilities. Its net asset value – the value of its properties minus its debt – was close to $500 million, up 34 percent year on year.

Yet its market capitalisation is only $66.6 million, according to Bloomberg data.

Its shares were priced at $0.21 on Wednesday, down 85 percent on its IPO prices. It last traded on March 26.

Vijay Valecha, chief investment officer at Century Financial, remained bullish on the future of the REIT market.

“The outlook on UAE’s REITs is steadily improving on the back of the government’s economic diversification initiatives as well as heightened property investment activity amidst an influx of expats taking advantage of growing employment opportunities and new visa categories,” he told AGBI.

Latest articles

Tourism to contribute $64bn to UAE’s economy in 2024

The tourism sector’s contribution to the UAE’s economy is expected to reach AED236 billion ($64 billion) in 2024, accounting for 12 percent of the overall GDP, a senior government official has said.  The sector contributed AED220 billion to the GDP last year, accounting for almost 12 percent of the overall economy, Khaled Al Midfa, chairman of Sharjah […]

Helmet, Adult, Male

Saudi Aramco’s $10bn share sale slated for next month

Saudi Aramco’s anticipated share sale is expected to take place next month, according to a media report. The offering is projected to raise nearly $10 billion and will be listed on the local stock exchange, Reuters reported, citing unnamed informed sources.  The sources said details may still change, but the process continues. In September 2023, […]

Indoors, Restaurant, Cafeteria

Hong Kong’s airport lounge operator targets Saudi expansion

Hong Kong’s airport lounge operator, Plaza Premium Group (PPG), has earmarked $100 million to expand across the Middle East, focusing on Saudi Arabia. The regional expansion is part of its three-year $300 million global expansion plan. The funds will be allocated to opening lounges, establishing an airport concierge service with white-glove service, opening innovative dining outlets and exploring […]

Russians Turkey Istanbul Bridge

Russians rush from Turkey as costs and restrictions bite

Rising costs, increased difficulties in obtaining residency permits and tighter enforcement of restrictions on the number of foreign nationals who can live in popular regions are prompting an exodus of Russian citizens from Turkey.  The number of Russian nationals holding Turkish residence permits has plunged to just over 96,000 as of May 16, down from […]