Emirates REIT Reports 19% Year-On-Year Increase In H1 2024 Operating Profit
Date
8/27/2024 3:25:47 PM
(MENAFN- Khaleej Times)
Equitativa (Dubai) Limited, manager of Emirates REIT PLC, on Tuesday reported an increase in net property income by 16 per cent to reach $34 million for the first half of 2024 for Emirates REIT.
Increasing occupancy levels and continued improvement in lease rates, supported by Dubai's buoyant commercial property market, resulted in year-on-year growth of 12 per cent in total property income to $40 million for H1 2024 (H1 2023: $36 million). In parallel, continued cost rationalisation helped reduce property operating expenses by three per cent to $6 million (H1 2023: $6.2 million).
This resulted in operating profit growing by 19 per cent to close at $25 million (H1 2023: $21 million) for the first half of the year.
Consistent pressure from rising finance costs remains to be a key challenge for the REIT, which muted the effects of an excellent operating performance and resulted in a negative funds from operations (FFO) of $1.5 million in H1 2024. Howere this was an improvement year on year over a negative $3.6 million FFO reported in H1 2023.
Thierry Delvaux, CEO of Equitativa Dubai
Fair value of investment properties, driven by continued improved valuations, increased by 18 per cent year-on-year to $991 million. This supported the financing to assets value (“FTV”), to fall to 40 per cent as at 30 June 2024, its lowest level since 2016.
The unrealised gain on revaluation of investment properties for H1 2024 amounted to $65m (H1 2023: $50m), reflecting the strong operating performance of the portfolio in a healthy real estate market.
Thierry Delvaux, CEO of Equitativa Dubai, said:“These results demonstrate the important progress we are making towards realising our strategic vision and delivering enhanced returns for our stakeholders. We have significantly improved operational performance by increasing occupancy levels and raising rates, and continue to deliver efficient cost management, with a special focus on concluding the refinancing plan aimed at strengthening the financial position.”
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