Equitativa, the largest real estate investment trust manager in GCC, has announced that the Emirates REIT, which is being managed by the firm, has reported robust growth for the first quarter with its net asset value surging by 38% year-on-year to close at $525 million, up from $380 million last year, which translates to a NAV per share of $1.64.

 

Announcing the financial results for the three-month period ended March 31, 2024 for Emirates REIT, the Emirati group said the total assets reached $1.073 billion, up 17% year-on-year from $917 million in Q1 2023.

 

During the past 12 months, Emirates REIT increased occupancy significantly across its portfolio, while at the same time increasing rental rates.

 

It registered a y-o-y growth of 15% in total property income which soared to $19.7 million for Q1 2024 when compared to $17.2 million last year, thanks to the continued increasing occupancy level and improvement in rental rates.

 

For the three-month period, Emirates REIT's net property income rose 17% to hit $16.6 million compared to $14.2 million in Q1 2023, said a statement from Equitativa.

 

It recorded an increase of 22% in operating profit which rose to $12.3 million for Q1 2024, up from $10.1 million in Q1 2023.

 

Total Finance costs increased to $13.4 million from last year's figure of $12.8 million, due to higher sukuk cost, leading to a funds from operations (FFO) figure of negative $1.1 million, up from negative $2.7 million in Q1 2023, it added.

 

According to Equitativa, a unrealized revaluation gain of $25.9 million was registered for Q1 2024, up from $10.3 million last year, leading to total assets reaching $1.073 billion.

 

The profit for Emirates REIT surged to $24.8 million for Q1, up from $7.6 million last year.

 

Commenting on Emirates REIT’s performance, Thierry Delvaux, CEO of Equitativa Dubai, said: "I am very pleased with these results that show the continued strong performance of Emirates REIT. It is in-line with the 18-month strategy that we launched in July 2023."

 

"Many leases signed during the last COVID-19-driven downturn are now due for renewal, which will continue to feed into the REIT's revenue growth," stated Delvaux.

 

"We have a lot more work to do this year, and I am optimistic that 2024 will be an excellent and pivotal year for Emirates REIT," he added.-TradeArabia News Service