Emirates REIT, a real estate investment trust under Dubai-based group Equitativa, has announced that it has successfully completed a $380 million sukuk issuance in bid to refinance another key Islamic bond that was issued five years back.

 

This comes following approval from more than 88% of the existing certificate holders who took part in the consent solicitation and voted in favor of the proposed refinancing, said a statement from Equitativa.

 

Emirates REIT has been boosting its financial and operational performance over the last two years, increasing occupancy and rental rates while retaining a strong focus and discipline on cost and expense management. 

 

This included a self-imposed management fee reduction during the Covid period. 

 

At its recent results announcement for 9M 2022, net profit had again increased 39.9% year-on-year to $69 million, driven by an unrealized gain on portfolio revaluation of $61.5 million during the period, stated Equitativa. 

 

The value of the REIT’s portfolio at the end of the 9-month period was $766.3 million, representing a 12.4% increase year-on-year, normalizing for the impact of the asset disposal during the period, it added.

 

Equitativa CEO Thierry Leleu expressed delight at having completed the refinancing of the sukuk issued in 2017, with the overwhelming support from its sukuk holders.

 

"This solid approval allows the business to now move forward into 2023 and beyond. The post

pandemic environment in Dubai represents an attractive opportunity for the REIT to cement its

leading position in the market, whilst at the same time taking advantage of the buoyant commercial

real estate market and new opportunities in areas such as logistics and education," he added.

 

Arun Reddy, Managing Director of Houlihan Lokey, said: “The almost unanimous sukuk holder

approval represents a highly successful result for all of the parties concerned and provides an

opportunity for the business, the certificate holders and all stakeholders involved with Emirates REIT

to move the organisation forward in a very positive manner."

 

"We are extremely pleased that the overall investor engagement process also allowed the sukuk holders to gather their own view of the go forward business plan and endorse the underlying valuations of the REIT," he added.