Emirates REIT posts 26.7% jump in net profit
Dubai - Emirates REIT delivered a strong financial and operating performance during 2015, consolidating its position as a leader in the UAE property asset management industry.
Emirates REIT (CEIC) Limited, or Emirates REIT, announced jump of 26.7 per cent in net profit for the year ended 31 December 2015 to $61.5 million against $48.6 million in 2014.
Emirates REIT delivered a strong financial and operating performance during 2015, consolidating its position as a leader in the UAE property asset management industry. By year end, the net asset value of the REIT stood at $469.6 million, an increase of 8.7 per cent year-on-year. The net asset value per share rose to $1.57 from $1.44 at year-end 2014. Including the total dividend of $0.08 per share paid out in 2015, this represents a total return of 14.2 per cent.
"We have continued to organically grow overall occupancy and leasing rates in our portfolio and have made good progress in the fit-out and leasing of Index Tower. The acquisition of the Jebel Ali School project during the year added further diversity and a secure long-term cash flow to the portfolio," said Sylvain Vieujot, executive deputy chairman of Emirates REIT.
The investment property increase of 17 per cent was largely driven by the addition of the Jebel Ali School ($30 million, including construction in progress), revaluation gains of $53.3 million mainly driven by the 10 per cent increase of the portfolio occupancy and the fit-out ($14.7 million) and leasing of some floors in Index Tower.
Liabilities increased by 67.6 per cent year-on-year to $271.8 million, mainly as a result of an increase in Islamic financing, which reflects the REIT's proactive approach to balance sheet management, financing its existing projects and securing additional funds to support future growth.