Emirates REIT records 30% rise in net profit in 2022

Equitativa, manager of Emirates REIT, reported that the REIT delivered a robust set of results during the year driven by the strategic management of its portfolio and an extremely strong market for commercial real estate in Dubai.

Net profit for the year increased 30 percent to $82m, boosted by net unrealised gain on portfolio revaluation of $79m during the year.

Occupancy across Emirates REIT’s portfolio increased to 85 per cent as of December 31, 2022, a 13 percentage point increase year-on-year.

This translated into an increased core rental, fee, and other income which amounted to $69m, up 11 per cent compared to the $62m recorded in the previous year.

Other performance highlights for the REIT

The REIT maintained a strong focus on cost optimisation and discipline, resulting in a 4 per cent year-on-year decline in property operating expenses to $12m in 2022, supporting a four percentage point improvement in net property income margin to a robust 94 per cent.

Consequently, net property income for the period was $55m, the income for FY2021 was $56m.

Excluding the impact of the one-off gain/loss on the disposal of investment properties, net property income increased 15 percent year-on-year, demonstrating the strong market for the REIT’s core assets.

The fair value of the REIT’s investment properties as of 31st December 2022 was $785m, representing a 6 per cent increase year-on-year. The net asset value increased 29 percent year-on-year to $373m, equating to $1.17 per share.

Sylvain Vieujot, executive deputy chairman of Equitativa, said, “Emirates REIT has delivered a strong set of operational results for 2022, underpinned by the robust market for premium commercial real estate in Dubai, with the city consolidating its position as a global business hub and a safe haven from growing global economic instability.

“Our portfolio of premium commercial and education real estate assets continues to generate strong demand, with occupancy across our portfolio increasing to 85 percent by the end of 2022. As a result, net profit increased 30 per cent year-on-year to $82m as the value of our portfolio increased, reflecting the quality of our assets. In 2022, we also successfully refinanced our $400m sukuk.”

Recent regulations

In other news, in July last year, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE  and Ruler of Dubai, issued a decree introducing incentives for property investment funds in Dubai.

Decree No (22) of 2022 covers all real estate investment funds licensed and regulated by government authorities as well as private development zones and free zones, including the Dubai International Financial Centre (DIFC).

It also covers all real estate in Dubai, including properties located in private development zones and free zones, excluding DIFC.

Read: Dubai: Sheikh Mohammed introduces incentives for property investment funds