Emirates Reit reports 22% increase in property income and 57% dip in net finance costs

Equitativa (Dubai) Limited on Monday reported that Emirates Reit’s total property income for the three quarters of 2025 increased by 22 per cent year-on-year on a like-for-like basis, reaching $60 million.

Occupancy increased to 94 per cent (Q3 2024: 92 per cent). Finance to Value (LTV) has been reduced by 16 per cent to a stable 20 per cent (Q3 2024: 36 per cent).

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Net finance costs fell 57 per cent to $17 million (Q3 2024: $40 million). Fund from operations (FFO) reached $14 million (Q3 2024: $-0.5 million, inclusive of divested investment properties in FY 2024)

Revaluation gains of $171 million, bringing total assets value to $1.22 billion, higher than the $1.17 billion in Q3 2024, despite the sale of properties in 2024.

Net asset value reached a historic high with an increase of 37 per cent year-on-year to $886 million or $2.78 per share from $648 million ($2.03 per share) in Q3 2024.

Equitativa’s asset management team continued to deliver steady operating performance across the Emirates Reit portfolio, with occupancy increasing to 94 per cent as at 30 September 2025. The improvement reflects sustained tenant demand across the portfolio, and the continued focus on proactive asset and lease management.

The net property income closed at $52 million, remaining broadly stable year-on-year, despite the disposal of investment properties in 2024, and underlining the resilience of the portfolio’s income generation.

Emirates Reit maintained its conservative capital structure during the period, with the Finance-to-Value reduced to 20 per cent, compared to 36 per cent a year earlier. This reduction reflects proactive deleveraging and disciplined balance sheet management.

Combined with refinancing initiatives and a reduced debt profile, net finance costs decreased by 57 per cent year-on-year to $17m, supporting the improvement in Funds From Operations to $14m for the period.

Revaluation gains of $171m were recorded during the period.

Thierry Delvaux, CEO of Equitativa Dubai, said: “Emirates Reit’s continued strong performance underscores the resilience of our portfolio and the disciplined execution of our strategy. We have delivered higher property income while materially reducing finance costs, with Net Asset Value reaching a record $886 million. At the same time, LTV has been reduced to 20 per cent and net finance costs lowered by 57 per cent to $17 million, strengthening the Reit’s balance sheet and positioning us well for sustainable growth and attractive returns for our shareholders.”

Khaleej Times Staff

webteam@khaleejtimes.com