Equitativa (Dubai) Limited (“Equitativa”), the largest REIT manager in the GCC and manager of Emirates REIT (CEIC) PLC (“Emirates REIT” or the “REIT”), today reported Q3 financial results for Emirates REIT, the world’s largest Shari’a compliant REIT and the first REIT listed on Nasdaq Dubai, for the period ended 30 September 2019.

Key Highlights

• Portfolio Value stands at USD 1 billion (AED 3.7 billionn)
• Total Property Income increased by 4% YoY to USD 54.1 million (AED198.5 million) vs USD 52.1 million (AED 191.5 million) in Sep 2018
• Property Operating Income increased 7% YoY to USD 43.4 million (AED 159.3 million) vs USD 40.6 million (AED 149.0 million) in Sep 2018
• Property expenses reduced by 8% YoY to USD 10.7 million (AED 39.3 million) from USD 11.6 million (AED 42.5 million) in Sep 2018
• EBITDA increased by 7% YoY to USD 29.0 million (AED 106.4 million) vs USD 27.1 million (AED 99.6 million) in Sep 2018
• Net Asset Value stood at USD 1.67 per share as at 30 Sep 2019
• Index Tower occupancy increased by 18% YoY

Focus on Operational Improvement

Equitativa announced that it has continued to focus on operational improvements, cost reduction and new revenue opportunities for Emirates REIT. As a result, Emirates REIT’s Total Property Income increased by 4% to USD 54.1 million (AED198.5mn) year-on-year, while its Property Expenses were reduced by 8% to USD 10.7 million and its EBITDA grew by 7% to USD 29.0 million (AED 106.4 million) for the period.

Emirates REIT realised a year to date net profit of USD 5.9 million (AED 21.83 million) as at Q3 2019, less than the same period of last year, due to revaluation losses influenced by market conditions. However, the profit as at Q3 2019 does mark an improvement compared to H1 this year, when Emirates REIT reported a drop in profits to USD 1.1 million (AED 4 million) driven by revaluation losses. The current lower revaluation losses are an indication of potential market recovery.

The Index Tower’s occupancy increased by 18% year-on-year. The Index Mall is now operational, with anchor tenants having opened their doors for business. The portfolio’s occupancy rate now stands at 74%, and its Weighted Average Lease Expiry maintains a healthy average of 7.9 years, despite tough market conditions.

The Loan to Value remains at 46%, below the regulatory limit of 65%.