The company disclosed that its total assets surpassed $1 billion in the year 2023.
Emirates REIT, a Shariah-compliant real estate investment trust based in Dubai, announced its strongest-ever property income and significant asset growth for the fiscal year 2023, as per today’s statement release.
In 2023, the REIT’s total property income surged by 10 percent year-on-year to $74 million, marking its highest revenue recorded thus far. Excluding divested assets, the like-for-like growth stood at 13 percent.
Emirates REIT witnessed a 37 percent increase in net operating profit, reaching $44 million, and a 55 percent rise in net profit, totaling $127 million compared to 2022. This impressive performance was fueled by an 18 percent uptick in the fair value of its investment property portfolio, which now stands at $924 million.
The REIT’s net asset value grew by 34 percent year-on-year to $500 million, resulting in a NAV per share of $1.57. Total assets surpassed $1 billion, reaching nearly $1.04 billion.
Thierry Delvaux, Equitativa’s CEO, commented, “The past year signifies a significant achievement for Emirates REIT, marked by record revenues and positive operating profits stemming from our strategy focused on optimizing asset performance. With a well-managed diversified portfolio of premium commercial, retail, and educational assets in Dubai, Emirates REIT is primed to leverage our solid foundations for further growth.”
Occupancy rates across Emirates REIT’s diverse portfolio of commercial, retail, and educational properties in Dubai climbed by 1.7 percentage points to 86 percent in 2023. Passing rental rates saw a 10 percent increase, reaching AED 1,809 per square meter.
Flagship properties like Index Tower in the Dubai International Financial Centre maintained stable occupancy at 88 percent, accompanied by an 11 percent rise in passing rents. The European Business Centre and Loft Offices experienced robust leasing activity throughout the year.
Delvaux emphasized, “These results are a testament to the dedication and expertise of our asset management team, which has enhanced efficiencies across the board, ensuring optimal performance of our portfolio assets and delivering exceptional value to our shareholders, tenants, and partners.”
Emirates REIT’s strong performance in 2023 underscores the significance of REITs as sustainable investment vehicles for diversifying portfolios with income-generating assets.
Established in 2010 as the UAE’s first Shariah-compliant REIT, Emirates REIT is managed by Equitativa, the GCC’s largest REIT manager. The REIT is publicly listed on Nasdaq Dubai.
In a recent interview with Arabian Business, industry experts noted a surge in investor activity in Dubai REITs. This trend comes nearly eight years after the UAE government introduced legal and regulatory frameworks to enable REIT investments.
