Emirates REIT Reports 19% year on year increase in h1 2024 Operating Profit

Key Highlights for H1 2024

• Total property income posted year-on-year growth of 12% to USD 40m in H1 2024, driven by:
  • - Higher occupancy (90.5%)
  • - Higher lease rates (+10%)
• Property operating expenses declined 3% year-on-year
• Operating profit increased by 19% year-on-year to reach USD 25m, up from USD 21m in H1 2023
• Rising Sukuk costs continued to negatively impact the REIT’s performance
• Funds From Operations (“FFO”) improved whilst remaining negative at USD 1.5m for H1 2024 (H1 2023: negative USD 3.6m)
• NAV per share grew by 34% year-on-year to USD 1.76, which is an all-time high
• Finance To Value decreased year-on-year 6 p.p. to 40%, its lowest level since 2016
• Value of Investment Properties increased by 18% year-on-year, with total assets reaching USD 1.1bn
• Thierry Delvaux - Equitativa

Dubai, United Arab Emirates. 27 August 2024 – Equitativa (Dubai) Limited (“Equitativa”), manager of Emirates REIT (CEIC) PLC (“Emirates REIT” or the “REIT”), today reported financial results for the half year ended June 30, 2024, for Emirates REIT.

Increasing occupancy levels and continued improvement in lease rates, supported by Dubai’s buoyant commercial property market, resulted in year-on-year growth of 12% in total property income to USD 40m for H1 2024 (H1 2023: USD 36m). In parallel, continued cost rationalisation helped reduce property operating expenses by 3% to USD 6.0m (H1 2023: USD 6.2m).

This resulted in net property income increasing by 16% to reach USD 34m (H1 2023: USD 30m) and operating profit growing by 19% to close at USD 25m (H1 2023: USD 21m). 

Consistent pressure from rising finance costs remains to be a key challenge for the REIT, which muted the effects of an excellent operating performance and resulted in a negative FFO of USD 1.5m in H1 2024, albeit recording year-on-year improvement over a negative USD 3.6m FFO reported in H1 2023.

Fair value of investment properties, driven by continued improved valuations, increased by 18% year-on-year to USD 991m. This supported the Financing To Assets Value (“FTV”), to fall to 40% as at 30 June 2024, its lowest level since 2016.

The unrealized gain on revaluation of investment properties for H1 2024 amounted to USD 65m (H1 2023: USD 50m), reflecting the strong operating performance of the portfolio in a healthy real estate market.

Thierry Delvaux, CEO of Equitativa Dubai, said: “These results demonstrate the important progress we are making towards realising our strategic vision and delivering enhanced returns for our stakeholders. We have significantly improved operational performance by increasing occupancy levels and raising rates, and continue to deliver efficient cost management, with a special focus on concluding the refinancing plan aimed at strengthening the financial position.”

For further information, including the H1 2024 Unaudited Financial Statements and Factsheet, please refer to our Investor Relations Page.