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Total property income posted year-on-year growth of 10% to USD 74m, highest value ever
April 18, 2024 | Staff Reporter | UAE | Property Management
Equitativa (Dubai) Limited, manager of the Dubai-based real estate investment trust Emirates REIT reported FY 2023 financial results for Emirates REIT. The REIT experienced strong growth, with record property income.
Commenting on Emirates REIT’s 2023 performance, Thierry Delvaux, Chief Executive Officer of Equitativa, said, “The past year represents a major milestone for Emirates REIT, with record revenues and positive operating profits built on a strategy based on asset performance optimization. With a well-managed diversified portfolio of premium commercial, retail and educational assets in Dubai, Emirates REIT is well positioned to build on our strong foundations for growth.”
“We signed a significant number of leases at lower rates during the COVID crisis, which are now coming to maturity. This should yield substantial additional rental growth in the next few years across the entire portfolio, as those are renewed at the current rates.”
Total property income reached USD 74m for FY 2023, representing a growth rate of 10% year-on year for the 12-months ended December 31, 2023 (FY2022: USD 67m). On a like-for-like basis, disregarding the effects of divestment of an investment property, this growth amounted to 13%. Property operating expenses recorded a slight increase of 2% y-o-y. Consequently, net property income grew by 12%, amounting to USD 62m for FY 2023 (FY 2022: USD 55m).
“The REIT’s robust performance in 2023 underscores the importance of REITs as a sustainable vehicle for investors to diversify their portfolio with productive, income-generating assets.”
Thierry Delvaux, Chief Executive Officer of Equitativa
The operating profit amounted to USD 44m, up by 37% (FY 2022: USD 32m). Impacted by the rising benchmark rates and higher Sukuk profit, the net finance cost for FY 2023 amounted to USD 50m (FY 2022: USD 29m), which resulted in a negative Funds From Operations (FFO) of USD 6m. Profit for the year 2023 amounted to USD 127m up by 55% y-o-y (FY 2022: USD 82m).
Thierry Delvaux continued, “The REIT’s robust performance in 2023 underscores the importance of REITs as a sustainable vehicle for investors to diversify their portfolio with productive, income-generating assets.
