Equitativa, a Dubai based real estate investment trust, reported US$8 million (Dh29 million) net profit in the first quarter of 2023.
‘’A net unrealized gain on portfolio revaluation of USD 10 million in the current period, compared to USD 20 million for the same period a year ago, weighed on profitability. This reflects the strong rebound in commercial property valuations in 2022 which is now beginning to normalize,’’ the company said in a statement.
‘’Occupancy across Emirate’s REIT’s stood at 84% as of March 31, 2023 as demand for the REIT’s portfolio of high quality commercial and retail assets remained strong. On a like-for-like basis (excluding Jebel Ali School, sold in May 2022), this represents a year-on-year increase of 5 percentage points. Overall demand remains supported by the UAE’s robust economic outlook which has led to a significant increase in new businesses entering or expanding in the country.’’
As a result, Emirates REIT’s core rental, fee, and other income for the first quarter of 2023 was a healthy US$17 million, compared to US$15 million for the first quarter of 2022 excluding Jebel Ali School, representing a year-on-year increase of 14 perent. The Net Property Income closed at US$14 million, increased from the US$12 million achieved in Q1 2022 excluding Jebel Ali School, which is a like-for-like increase of 16 percent, it said.
The REIT maintained a strong focus on cost optimisation and discipline, resulting in a 5 percet year-on-year decline in Fund Expenses to US$4 million in the first quarter of 2023. This helped the REIT report a 3 percent year-on-year increase in operating profit to US$10 million. The fair value of the REIT’s portfolio as at 31 March 2023 was US$797 million, representing a 5 percent increase year-on-year. The Net Asset Value increased 21 percent year-on-year to US$380 million, equating to US$1.19 per share.
Sylvain Vieujot, Executive Deputy Chairman of Equitativa, said: “Emirates REIT delivered a healthy set of operational results for the first quarter of 2023, demonstrating the continued strong demand we’ve seen for our portfolio of high quality commercial and retail real estate assets. Occupancy across our portfolio continues to increase as robust local economy continues to drive demand for commercial real estate in the UAE and we remain optimistic that the country’s status as a leading global commercial hub will help unlock various strategic options for the REIT. We look forward to capitalizing on this momentum and creating further value for all of our stakeholders.’’
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