Emirates Reit 9-month profit hits $46m

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Emirates Reit 9-month profit hits $46m

"We are pleased with the overall performance during the third quarter," said Sylvain Vieujot, deputy executive chairman of Emirates Reit.

By Staff Report

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Published: Wed 28 Oct 2015, 12:00 AM

Last updated: Wed 28 Oct 2015, 10:17 AM

Emirates reit on Tuesday said its third-quarter net property income hit the $16 million mark while net profit amounted to $10.9 million.
In a statement, the first Shariah-compliant real estate investment trust listed on Nasdaq Dubai said the net property income and net profit during January-September 2015 period touched $60.7 million and $46 million, respectively. The company's earnings per share during July-September 2015 quarter surged 42 per cent at 0.0365.
"We are pleased with the overall performance during the third quarter," said Sylvain Vieujot, deputy executive chairman of Emirates Reit.
The net asset value of the Reit was $454.1 million at the end of the third quarter of 2015. The net asset value per share stood at $1.52 compared to $1.48 for the second quarter 2015 and $1.44 at year-end 2014, representing a total annualised return of 14.25 per cent including the dividend of $0.08 per share paid out to date in 2015.
"Against a general trend of increased volatility in the real estate sector, Emirates Reit continued to deliver stability and growth. We generated a stable income stream, raised the market value of our assets and increased the occupancy rate across our portfolio," Vieujot said.
Investment property increased by 6.9 per cent to $657.4 million from $615 million as at June 30, 2015. This increase was largely driven by the addition of the Jebel Ali School ($26.8 million) which was announced in August, and revaluation gains of $8.68 million. The revaluation gains in the third quarter 2015 primarily reflect the higher rental rates being achieved at Index Tower. Year-on-year occupancy improved by eight per cent to a total portfolio occupancy rate of 75 per cent as at September 30, 2015.
So far this year, total assets have increased by 14.1 per cent to $677.9 million, compared to $549.2 million at December 31, 2014. Year-on-year liabilities increased by 27.6 per cent to $223.8 million chiefly due to increase in debt to fund the Jebel Ali School project where Emirates Reit is expected to invest $56.7 million. The loan-to-value ratio, which is capped at 50 per cent, stood at 31 per cent at September 30, 2015. This leaves additional borrowing capacity of $257.6 million to fund the Reit's future growth.
"Looking ahead, we are encouraged by the quality and positioning of our property portfolio and the progress we are making on attracting new tenants at Index Tower. Our focus on delivering high-quality office space for our existing and prospective tenants and our ongoing improvements across our assets allow us to achieve rent premium on our competitors," Vieujot said.
"Our additional borrowing capability places us in a strong position to execute on our acquisition strategy, which enables us to further grow the size of the Reit and generate returns for our shareholders through market cycles," he added.
- muzaffarrizvi@khaleejtimes.com

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