Emirates REIT’s total property income up 4% at $54.1m in Q3 2019
Emirates REIT realised a year-to-date net profit of $5.9m (AED21.83m) by Q3 2019 after operational improvements
GCC’s largest REIT manager Equitativa, which manages the world’s largest Sharia-compliant REIT – Emirates REIT, announced that it continued to focus on operational improvements, cost reduction, and new revenue opportunities for Emirates REIT in Q3 2019, resulting in a 4% year-on-year increase in the REIT’s total property income to $54.1m (AED198.7m), while its property expenses reduced by 8% to $10.7m (AED39.3m).
Emirates REIT, which is also the first REIT to be listed on Nasdaq Dubai, saw its Ebidta grow 7% to $29m (AED106.4m) in Q3 2019, compared to the same period last year, while its property operating income increased 7% year-on-year to $43.4m (AED159.3m).
According to a company statement, Emirates REIT realised a year-to-date net profit of $5.9m (AED21.83m) at the end of Q3 2019, which is lesser than the same period of last year due to revaluation losses influenced by market conditions.
Profit in Q3 2019 marked an improvement compared to H1 2019, when Emirates REIT saw its profits drop to $1.1m (AED4m) driven by revaluation losses. The current lower revaluation losses are an indication of potential market recovery.
The Index Tower’s occupancy increased 18% year-on-year in Q3 2019. The Index Mall is now operational, with anchor tenants having opened their doors for business. The portfolio’s occupancy rate stands at 74%, and its weighted average lease expiry maintains a healthy average of 7.9 years, despite tough market conditions, the company said.