Emirates Reit Reports Robust H1 2025 Performance With Strong Financials

Emirates Reit (CEIC), managed by Equitativa (Dubai) Limited, has announced a strong set of financial results for the first half of 2025, underscoring the success of its strategic initiatives and asset management capabilities.

The Reit closed H1 2025 with a significantly strengthened balance sheet, reducing its Loan-to-Value (LTV) ratio to 20 per cent-a 50 per cent improvement from the 40 per cent recorded in H1 2024. This deleveraging, driven by strategic asset sales and the refinancing of Sukuk II, contributed to a 57 per cent drop in finance costs, which fell to $12 million from $27 million a year earlier.

Total property income rose by 24 per cent year-on-year on a like-for-like basis, reaching $39 million, supported by a record-high occupancy rate of 95 per cent and a 14 per cent increase in rental rates. Net property income stood at $34 million, reflecting the strength of the portfolio and operational efficiency.

The Reit also reported a dramatic turnaround in Funds from Operations (FFO), which climbed to $7 million from a negative $1.5 million in H1 2024. Revaluation gains of $177 million boosted total assets to $1.2 billion, up from $1.1 billion despite the sale of two properties during FY2024.

Net Asset Value (NAV) surged by 57 per cent year-on-year to a historic high of $886 million, or $2.78 per share, compared to $563 million ($1.76 per share) in the same period last year. A dividend of $7 million was declared and paid during the first half of 2025, reinforcing the Reit's commitment to delivering consistent returns to shareholders.

Thierry Delvaux, CEO of Equitativa Dubai, said:“We are pleased to report a successful half-year performance, which demonstrates that our strategy is delivering tangible results for shareholders. These results are underpinned by Equitativa's careful selection of high-quality assets at acquisition, ensuring that our portfolio comprises some of the UAE's most sought-after commercial real estate. This positions us strongly to continue delivering sustainable growth and consistent returns for our stakeholders.”

With a solid financial foundation and strong cash flow generation, Emirates Reit remains well-positioned to execute its progressive dividend strategy and enhance long-term shareholder value.

MENAFN28082025000049011007ID1109987555