Emirates Reit reports rise in profit from higher occupancy
Third-quarter net profit at Emirates Reit edged up 4 per cent compared with a year earlier as the UAE’s only listed real estate investment trust pushed up occupancy levels despite a slowing Dubai office market.
Emirates Reit, which owns and operates a portfolio of nine office and school buildings in Dubai, reported that net profit for the three months to the end of September this year rose to US$11.3 million, up from $10.9m a year earlier.
The Nasdaq Dubai-listed company reported a 22 per cent boost in net rental income for the period to US$8.9m as the real estate investment trust rented out further office space at its biggest asset Index Tower in DIFC, pushing up its occupancy levels in the building to 24 per cent.
However, the company reported that net profit for the first nine months of the year fell to $35.1m, down 24 per cent compared with the same period a year earlier.
The company said that an 18.3 per cent valuation gain on the construction completion of its Jebel Ali School in Damac’s Akoya development helped the reit increase its total assets by 4 per cent to $773.1m at the end of September.
Emirates Reit said the increase makes it the largest Sharia-compliant reit in the world – overtaking Singapore’s Sabana Shari’ah Compliant Industrial Real Estate Investment Trust.
“Becoming the largest listed Sharia-compliant Reit in the world is an important milestone as it will increase our international exposure and strengthen our growth and liquidity,” said Sylvain Vieujot, the chief executive of Emirates Reit Management, which controls the trust.
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