(MENAFN - Khaleej Times) Irates Reit (CEIC) Limited on Wednesday announced that its net profit jumped by 194 per cent to 34.Emirates Reit is the first Shariah-compliant regulated real estate investment trust incorporated in the Dubai International Financial Centre. It’s managed by Emirates Reit Management (Private) Limited or Reit Manager. The company said its portfolio value increased by more than 73 per cent to 559.65 million or Dh2.06 billion from 323.13 million or Dh1.19 billion at the end of 2013.
Abdulla Al Hamli chairman of the Reit Manager said: “In just a few months we delivered what we have promised our shareholders; using the net proceeds to increase the size of the portfolio. The two acquisitions demonstrate that there are still significant opportunities within the Dubai market to invest at attractive prices in prime buildings which offer substantial growth. We will continue to work on our sizeable acquisition pipeline located mainly in Dubai and across all commercial sectors.”
Since the listing in April Emirates Reit used the net proceeds of the IPO to fund two successful acquisitions. In May the REIT acquired Le Grande Community Mall for Dh118.2 million. Le Grande consists of 22 individual retail and food and beverage units on the ground and podium floors as well as 161 basement car park spaces. Located in the Marina area one of the most popular areas of new Dubai the retail units have good occupancy rates and strong yields.
In June the Reit entered into an agreement with Emirates NBD Properties to acquire offices and 706 car parking spaces in the DIFC’s Index Tower for a cash consideration of approximately Dh613.4 million. With these acquisitions Emirates Reit’s property portfolio grew to 11 properties within Dubai. Excluding the Index Tower assets the overall occupancy increased from 93 per cent as at 31 December 2013 to 97 per cent as at end of June 2014 and the total passing income increased from Dh110 million to Dh129 million.
Sylvain Vieujot executive deputy chairman of the Reit Manager said the first six months of 2014 were marked with milestones.
“We continued to grow our portfolio adding prime assets in strategic locations whilst we launched our successful IPO. We are confident that demand for commercial property in Dubai will continue to grow. With our ability to add significant value through a professional management of the portfolio we aim to continue to maximise the value for our shareholders.”