Latest news with #EmiratesREIT
Dubai Eye
2 days ago
- Business
- Dubai Eye
Emirates Reit reports strong Q1 2025 with 24% rise in property income
Emirates REIT (real estate investment trust) has recorded total property income of $19 million in the first quarter of 2025, marking a 24 per cent year-on-year growth. Operational efficiency remained a key driver of performance in the first quarter of 2025, with property operating expenses down 8.4 per cent year-on-year to $3 million. Despite the exclusion of income from divested assets - Trident Grand Mall and Office Park, net property income held steady at $16 million, the parent entity, Equitativa (Dubai) announced. Net finance costs declined sharply by 57 per cent to $6 million, driven by the successful Sukuk refinancing in late 2024 and reduced financing exposure, directly enhancing earnings and cash flow. Reflecting the ongoing momentum in the UAE property sector, the fair value of investment properties rose 14 per cent year-on-year to $1.2 billion (AED 4.0 billion) despite strategic asset disposals. This growth was underpinned by unrealised revaluation gains of $149 million. Portfolio fundamentals remained exceptionally strong, with occupancy reaching 95 per cent, supported by a 17 per cent year-on-year increase in commercial and retail rental rates. This performance reflects Dubai's robust leasing environment and sustained demand for high-quality real estate. "At the start of last year, we made a commitment to our shareholders that our efforts would position Emirates REIT on a path for sustained growth, and these results demonstrate how far we have come in achieving this," said Thierry Delvaux, CEO of Equitativa Dubai. "By reducing financing costs and maximizing returns across our portfolio, we have achieved a leaner and more efficient capital structure for the REIT that will enable us to deliver sustainable returns. We are confident that 2025 will enable us to fully capitalise on our strong position and clear strategy in a dynamic market." Earlier this month, the shareholders of Emirates REIT approved the resolution to distribute a final cash dividend of $7 million or $0.02 per ordinary share, for the financial year ending on December 31, 2024, as well as authorising the REIT manager to allow the payment of another dividend later in the year.
ARN News Center
2 days ago
- Business
- ARN News Center
Emirates Reit reports strong Q1 2025 with 24% rise in property income
Emirates REIT (real estate investment trust) has recorded total property income of $19 million in the first quarter of 2025, marking a 24 per cent year-on-year growth. Operational efficiency remained a key driver of performance in the first quarter of 2025, with property operating expenses down 8.4 per cent year-on-year to $3 million. Despite the exclusion of income from divested assets - Trident Grand Mall and Office Park, net property income held steady at $16 million, the parent entity, Equitativa (Dubai) announced. Net finance costs declined sharply by 57 per cent to $6 million, driven by the successful Sukuk refinancing in late 2024 and reduced financing exposure, directly enhancing earnings and cash flow. Reflecting the ongoing momentum in the UAE property sector, the fair value of investment properties rose 14 per cent year-on-year to $1.2 billion (AED 4.0 billion) despite strategic asset disposals. This growth was underpinned by unrealised revaluation gains of $149 million. Portfolio fundamentals remained exceptionally strong, with occupancy reaching 95 per cent, supported by a 17 per cent year-on-year increase in commercial and retail rental rates. This performance reflects Dubai's robust leasing environment and sustained demand for high-quality real estate. "At the start of last year, we made a commitment to our shareholders that our efforts would position Emirates REIT on a path for sustained growth, and these results demonstrate how far we have come in achieving this," said Thierry Delvaux, CEO of Equitativa Dubai. "By reducing financing costs and maximizing returns across our portfolio, we have achieved a leaner and more efficient capital structure for the REIT that will enable us to deliver sustainable returns. We are confident that 2025 will enable us to fully capitalise on our strong position and clear strategy in a dynamic market." Earlier this month, the shareholders of Emirates REIT approved the resolution to distribute a final cash dividend of $7 million or $0.02 per ordinary share, for the financial year ending on December 31, 2024, as well as authorising the REIT manager to allow the payment of another dividend later in the year.
Zawya
3 days ago
- Business
- Zawya
Emirates REIT reports a strong Q1 2025 with 24% increase in property income
Property operating expenses have decreased by 8.4% to USD3 million, driven by further cost optimization initiatives. Occupancy increased by 6% to 95%. Net property income remained stable at USD16 million, despite the absence of income of the properties divested in 2024, which has been compensated by higher rents and occupancy. Sharp Reduction in Finance Costs with Net finance costs decreasing by 57% to USD6 million, thanks to the success of the Sukuk refinancing. Revaluation gain of USD149 million leading to the Total Assets reaching USD1.2 billion, higher than the 1.1 billion in Q1 2024, despite the sale of the two properties. Finance to Value (FTV) improved significantly to 20% from 41% a year earlier, thanks to reimbursement of loans by USD196 million in 2024. Increase of Net Asset Value by +64% year-on-year to USD858 million or USD2.69 per share from USD 525 million (USD1.64 per share) in Q1 2024, setting a new historic record. Dubai, United Arab Emirates – Equitativa (Dubai) Limited ('Equitativa'), manager of Emirates REIT (CEIC) PLC ('Emirates REIT' or the 'REIT'), today reported financial results for the quarter ended 31 March 2025 for Emirates REIT. Total property income was USD 19 million in Q1 2025 growing 24% year-on-year on a like-for-like basis, reflecting the quality of the retained portfolio, even with the REIT having divested two properties from its portfolio – Trident Grand Mall and Office Park – during 2024. Operational efficiency remained a key driver of performance in Q1 2025, with property operating expenses down 8.4% year-on-year to USD 3 million. Despite the exclusion of income from divested assets, net property income held steady at USD 16 million, underscoring the resilience and income-generating strength of the core portfolio. At the same time, net finance costs declined sharply by 57% to USD 6 million, driven by the successful Sukuk refinancing in late 2024 and reduced financing exposure, directly enhancing earnings and cash flow. Reflecting the ongoing momentum in the UAE property sector and the enduring strength of Emirates REIT's high-quality portfolio, the fair value of investment properties rose 14% year-on-year to USD 1.2 billion (AED 4.0 billion) despite strategic asset disposals. This growth was underpinned by unrealised revaluation gains of USD 149 million. Portfolio fundamentals remained exceptionally strong, with occupancy reaching 95%, supported by a 17% year-on-year increase in commercial and retail rental rates. This performance reflects Dubai's robust leasing environment and sustained demand for high-quality real estate, reinforcing Emirates REIT's ability to capture value through active asset management and market positioning. Commenting on Emirates REIT's performance, Thierry Delvaux, CEO of Equitativa Dubai, said: 'At the start of last year, we made a commitment to our shareholders that our efforts would position Emirates REIT on a path for sustained growth, and these results demonstrate how far we have come in achieving this. By reducing financing costs and maximizing returns across our portfolio, we have achieved a leaner and more efficient capital structure for the REIT that will enable us to deliver sustainable returns. We are confident that 2025 will enable us to fully capitalise on our strong position and clear strategy in a dynamic market.' Earlier this month, the shareholders of Emirates REIT approved the resolution to distribute a final cash dividend of USD 7 million or USD 0.02 per ordinary share, for the financial year ending on 31 December 2024, as well as authorising the REIT manager to allow the payment of another dividend later in the year. For further information, including the Q1 2025 Factsheet, please refer to the Investor Relations Page. ABOUT EMIRATES REIT: Emirates REIT, (Nasdaq Dubai: REIT; ISIN: AEDFXA1XE5D7), is a Dubai-based real estate investment trust investing principally in income-producing real estate in line with Shari'a principles. It currently owns a well-balanced portfolio of assets in the commercial, education and retail sector. Emirates REIT benefits from exclusive Ruler's Decrees permitting it to purchase properties in onshore Dubai and Ras Al Khaimah. ABOUT EQUITATIVA GROUP: The Equitativa Group is a leading regional asset manager focused on creating and managing real estate investment trusts (REITs). The group offers innovative risk-adjusted, income generating financial products that cater to institutional and retail investors. As the founder of the UAE's first Shari'a compliant REIT, Emirates REIT, Equitativa is today one of the largest REIT managers in the Gulf Cooperation Council (GCC) countries and one of the biggest REIT managers for Shari'a Compliant REITs in the world
Zawya
13-06-2025
- Business
- Zawya
Equitativa announces the distribution of Emirates REIT FULL-Year 2024 dividend
Dubai – Equitativa (Dubai) Limited ('Equitativa'), manager of Emirates REIT (CEIC) PLC ('Emirates REIT' or the 'REIT'), today announced its intention to distribute a final cash dividend of USD 7,000,000, or USD 0.02 per ordinary share, for the financial year ending on 31 December 2024. The dividend was approved by shareholders at the Annual General Meeting on 11 June 2025 and reflects Emirates REIT's strong financial performance and commitment to delivering value to its investors. The dividend will be paid to shareholders of record as of 4 June 2025. Thierry Delvaux, Chief Executive Officer, Equitativa (Dubai), commented: 'This milestone underscores our ongoing commitment to delivering long-term value and sustainable returns. We recorded excellent results in 2024 and are pleased to resume dividend payments to our shareholders, reflecting the robust performance and stability that Emirates REIT has achieved. Looking ahead, we intend to maintain a regular dividend policy, supported by strong returns and focused portfolio management.' Emirates REIT delivered exceptional results for FY 2024, driven by high occupancy and improved rental yields. Highlights included the sale of Trident Grand Mall in July 2024 for USD 20m, and Office Park in October 2024 for USD 196m, the proceeds from which were used to fully repay a bilateral bank facility and partially settle Sukuk obligations, followed by refinancing with a new long-term Sukuk with a coupon rate of 7.5% per annum (compared to 11.25% for the previous Sukuk). Operating profit for FY 2024 was USD 99m. Net finance costs remained range bound at USD 49.5m for FY 2024 (FY 2023: USD 49.8m), primarily due to the refinancing of the Sukuk and the prepayment of bank financing towards the end of FY 2024. The full impact of the reduction in financing costs should be reflected in the REIT's 2025 results, which will support ongoing dividend payments. In addition, the REIT's diversified portfolio of income-generating commercial properties continues to provide a resilient platform for sustainable returns. The dividend will be distributed in line with Emirates REIT's dividend policy and subject to applicable regulatory approvals. ABOUT EMIRATES REIT: Emirates REIT, (Nasdaq Dubai: REIT; ISIN: AEDFXA1XE5D7), is a Dubai-based real estate investment trust investing principally in income-producing real estate in line with Shari'a principles. It currently owns a well-balanced portfolio of assets in the commercial, education and retail sector. Emirates REIT benefits from exclusive Ruler's Decrees permitting it to purchase properties in onshore Dubai and Ras Al Khaimah. ABOUT EQUITATIVA GROUP: The Equitativa Group is a leading regional asset manager focused on creating and managing real estate investment trusts (REITs). The group offers innovative risk-adjusted, income generating financial products that cater to institutional and retail investors. As the founder of the UAE's first Shari'a compliant REIT, Emirates REIT, Equitativa is today one of the largest REIT managers in the Gulf Cooperation Council (GCC) countries and one of the biggest REIT managers for Shari'a Compliant REITs in the world.
Zawya
10-06-2025
- Business
- Zawya
Dubai's office rents set to rise due to strong demand
Demand for commercial offices in Dubai has remained strong due to a steady business upturn and this will boost office rents, a real estate fund executive said on Tuesday. The price surge could also be a result of low office building supply in the emirate, said Thierry Delvaux, CEO of Emirates REIT, one of the UAE's largest listed Shariah-compliant real estate investment funds. Delvaux said there has been strong demand for offices in Dubai and the UAE in general by both local and foreign investors. 'The commercial office market in Dubai has remained very strong because there has been high demand by local and foreign investors,' he told CNBC Arabia news TV. 'But the problem is that supply has been very low…that is why rents have been high and will continue to rise…this is benefiting real estate investment funds,' he said. Delvaux revealed that Emirates REIT's income from real estate business jumped by nearly 96 percent in 2024, adding that the Company now manages three schools in the emirate, providing it with steady investment income. (Writing by Nadim Kawach; Editing by Anoop Menon) (
