GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> Real Estate and Retail

 
  Share

H1 Highlights

  • 31% growth in net rental income to USD 21.5m (1H 2016: USD 16.4m)
  • Strong rental income conversion lead to 67% growth in funds from operations (“FFO”), now USD 8.3m
  • Current annualized rent passed AED 200 million mark
  • Phase 1 of the British Columbia Canadian School is being delivered. Opening pending authority inspections.
  • Owner fit out and leasing under way at Index Mall
  • Pursuing acquisition opportunities in the current market environment

Dubai – 24 August 2017: Emirates REIT (CEIC) Limited (“Emirates REIT” or the “REIT”), the world's largest Shari'a compliant Real Estate Investment Trust, managed by Equitativa (Dubai) Limited (“Equitativa Dubai”), today reported its unaudited first half financial results for the period ended 30 June 2017.

Growth in rental income
Emirates REIT saw rental income grow 22% to USD 25.4 million in the first half of the year (H1 2016: USD 20.9 million). Service fees and other income rose 6% to USD 2.8 million, leading to USD 28.3 million in property income generated in H1 2017 (+20%). This primarily reflects incremental leasing of office units at Index Tower, income from Jebel Ali School and rental payments from British Columbia Canadian School. Total occupancy across the portfolio reached 83% as at 30 June 2017. The weighted average unexpired lease term was up to 8.2 years from 6.2 years in H1 2016.
The annualized rental income continues to grow and passed the AED 200 million mark as of August 2017.

Improved flow-through of rental income to FFO
In a challenging market environment, the REIT continues to grow its occupancy, increase its rental rates and achieve a strong increase in its rental income. In addition, Equitativa's hands-on property management and proactive optimization of the portfolio continues to improve the financial performance of the REIT. Consequently, this combined strategy significantly improved the flow-through of income to FFO. The REIT was able to convert most of its additional rental income to FFO, resulting in a 67% increase in FFO, or cash profit, to USD 8.3 million in the first half of the year (H1 2016: USD 5.0 million).

Increase in portfolio valuation and net asset value
The total portfolio value as of 30 June 2017 was USD 772.1 million, a year-on-year increase of 6.9% (30 June 2016: USD 722.0 million). The net asset value was USD 1.63 per share, or USD 487.8 million, (30 June 2016: USD 1.57 per share or USD 469.4 million). Valuation gains on the total portfolio in H1 2017 were USD 10.0 million (H1 2016: USD 18.8 million), reflecting the increase in contracted cash flow.

As expected, and highlighted in previous quarterly statements, the decrease in revaluation gains year on year, which is a result of the maturing portfolio that generates more stable cash flows, led to a lower net profit of USD 18.3 million for the first half (H1 2016: USD 23.8 million).

Further operational progress
The first phase of the new British Columbia Canadian School is being delivered. The opening of the school is pending authority inspections. This leasehold plot in Dubai Investments Park was acquired by the REIT and immediately leased back to the school. The estimated IRR on this project is expected to exceed 12%. The owner fit out and leasing of Index Mall is now well underway. The 73,650 sq. ft. Mall will be a prime destination featuring a variety of shops, food and beverage outlets and amenities, connected to DIFC's Gate Avenue, which is due to open in H1 2018.

Leverage
Total debt as at 30 June 2017 was USD 300.2 million. The LTV ratio of the REIT stood at 36.8%, well below the REIT's regulatory maximum LTV of 50%.

Sylvain Vieujot, CEO of Equitativa Dubai, the REIT Manager, commented:
“The first half of the year was marked by strong operating cash flow conversion to profits and demonstrates the efficiency of our property and tenant management. Our defensive portfolio of prime assets and the doubling of our team has helped us continue to grow rents and identify strong acquisition opportunities. We continue to strengthen Emirates REIT's track record in the education sector and are pleased to be handing over BCCS on budget and in less than a year. Despite market challenges, the REIT continues to perform well and return a high dividend to shareholders.”



Posted by : GoDubai Editorial Team
Viewed 6350 times
Posted on : Thursday, August 24, 2017  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Dubai real estate brokers earn AED 820 million in six months
Next Story : Danube delivers Dh350 million Glitz I and Glitz II at Dubai Studio City
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Time for Some AIGNER Love
BOSS watches presents Navigator Collection
Absolutely Rejuvenated Skin to Start the New Year
Step into 2018 with skinade & slow down the signs of ageing
Glamazle.com names a Lipstick after Yardstick Marketing as a testimonial to the ...
SUC Conducted the 10th CEO Lecture Series
LG bets high on Premium TV Market with industry leading OLED Technology
With the Increasing Trend of Grooming Among Men, Kaya Skin Clinic Launches an Ex...
Nouveau Lashes & Beauty – The Aftercare Range
10 years on Bremont refreshes ALT1-P range
Dubai-based teen star Polina Butorina releases her debut album ‘Ocean of Emotions'
Sleigh your style with women'secret's festive collection
LPG Endermologie provides tips for you to stay healthy and glowing inside and out
Party Season Essentials at Paris Gallery
du Opens New Business Centre Facility at Jebel Ali Free Zone (Jafza)
Saint Honore presents the distinguished Haussmann for men in an elegant avatar
DIFF Closes With Full Force on the Red Carpet
MEPRA announces winners of its 2017 awards
Switzerland wins a Good Design Award for the first chronograph-watch in history
Lacoste Introduces Motion Collection
Festive and NYE Happenings at Tub of Butter
Win 3000 Dollars with Splash
Joyalukkas the World's Favourite Jeweller Now Launches in South Extension, Delhi
Joy of Christmas Feast with TWG Tea
Al Tayer Motors Celebrates 100 Years of Ford Pick-up Trucks
Registration Opens for the Fazza Championships for Falconry 2018
Ring in the New Year with Ramada Plaza Jumeirah Beach in JBR at Fogueira, Speake...
DIFF Welcomes Robert Bosch Stiftung to the Festival's 14th Edition
De'longhi Bean-to-cup Coffee Machines
SOUQ launches “Amazon Global Store” bringing over a million global products to t...
HydroPeptide Anti-Aging Skin Care Launches in UAE
The First PappaRoti Boutique opens its doors for a luxurious experience at Emir...
Huawei's ultimate gift guide for the 2017 Holiday Season
El Sur - Christmas Eve, Christmas Day and New Year Offers
Step into Lili Miro's World of Luxury for Men
‘Be There' at The Dubai Mall this festive season and join in the Winter Celebra...
Pure Gold Jewellers Joins Forces with Disney to Launch Exclusive New Diamond Col...
Emirati Logistics Pioneer ‘Allied Transport' Awarded “Most Innovative & Regulate...
Three Day China Homelife Exhibition Begins in Dubai and Ensures Direct Sourcing ...
Mansour bin Zayed opens SIAL Middle East 2017 Exhibition
Middle Eastern countries recorded exports of US$ 765.8 billion and imports of US...
Xiaomi opens second Authorized Mi Store in the UAE
Dubai Customs wins “Best Customs Department in 2017” Award
Pump Up Your Energy Level This December with H2GO
Mutual Recognition: DPM Launches Engineer Registration System
Emirates celebrates holiday season with special Christmas treats
World Future Energy Summit 2018 to map transition to a sustainable economy and l...
Schneider Electric commits to 100% renewable electricity by 2030, doubling energ...
Food Security Center Abu Dhabi to Examine Ways of Enhancing Regional Food Securi...
Cate Blanchett Announces Haifaa Al Mansour as Winner of Sixth IWC Filmmaker Awar...