Equitativa Reports record performance for Emirates REIT's 2024 results

Zawya

29-04-2025

Dubai – Equitativa (Dubai) Limited ('Equitativa'), manager of Emirates REIT (CEIC) PLC ('Emirates REIT' or the 'REIT'), today reported FY2024 financial results for Emirates REIT. Total property income grew by 79% year-on-year to USD 133m by gains on disposals, higher occupancy and improved rental rates.
by year-on-year to USD 133m by gains on disposals, higher occupancy and improved rental rates. Property operating expenses declined by 6% year-on-year.
year-on-year. Operating profit reached USD 99m , driven by strong portfolio performance, effective cost management, and strategic asset optimization.
, driven by strong portfolio performance, effective cost management, and strategic asset optimization. Total occupancy reached 94% across the portfolio.
reached across the portfolio. Divestments included the sale of Trident Grand Mall in July for USD 20m, and Office Park in October for USD 196m.
The fair value of the REIT's investment property portfolio remained steady despite these divestments, closing at USD 932m.
Financing-to-Value ratio improved to 24% its lowest level since 2014.
ratio improved to its lowest level since 2014. Net Asset Value reached an all-time high, increasing by 42% to USD 708m, with NAV per share rising to USD 2.22.
Higher occupancy and rental rates, focused portfolio management, clear-sighted financial control and strong valuation gains delivered some of the best results in the REIT's history, reinforced by the strategic divestment of select properties and a reduction in the overall financing.
Divestments included the sale of Trident Grand Mall in July 2024 for USD 20m, and Office Park in October 2024 for USD 196m. Proceeds from these investments were utilized 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).
As of 31 December 2024, the portfolio's occupancy rate stood at 94%, marking a significant increase of 8.0% year-on-year.
Total property income for FY 2024 increased by 79% year-on-year to USD 133m (FY2023: USD 74m). Disregarding the effects of divestments and on a like-for-like basis, total property income achieved a year-on-year growth of 19%, underscoring the REIT's strong underlying portfolio performance.
Operating expenses declined by 6.3% to USD 11.5m (FY2023: USD 12.3m), driven by strategic cost-saving initiatives and asset disposals.
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 benefits of these initiatives are expected to positively impact 2025's results.
Aligned with strong portfolio performance, unrealized gains for FY 2024 increased to USD 159m, up from USD 133m in FY 2023. Consequently, profit for the year increased by 64%, reaching USD 209m (FY 2023: USD 127m).
Net Asset Value (NAV) for FY 2024 reached an all-time high, increasing by 42% year-on-year to USD 708m, with NAV per share rising to USD 2.22 (FY 2023: USD 1.57).
Thierry Delvaux, CEO of Equitativa Dubai, said: 'We are very proud to report a positive set of full-year results that reflect the continued strength of our portfolio, the resilience of our strategy and the ongoing dynamism of the UAE's property sector, particularly in the commercial space. With a 79% increase in property income, a robust occupancy rate of 94% and a much-improved FTV of 24%, Emirates REIT continues to deliver through disciplined financial control and focused portfolio management. As the UAE property market continues to develop, Emirates REIT is well placed to drive sustainable growth across our portfolio and generate long-term value for our stakeholders.'
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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.