The world’s largest Shari'a compliant Real Estate Investment Trust Equitativa reported Emirates REIT unaudited financial results for the period ending 31 March 2019.
Equitativa announced a steady 8.4% increase in total property income to $17.9m. Despite the loss of income from DIP school, the active management of Emirates REIT’s portfolio led to a strong increase in total property income which more than compensated for the related reduced income.
This increase in total property income was led by the organic increase in occupancy in Index Tower and the two acquisitions completed in 2018.
During Q1 2019, Office Park occupancy increased from 86% to 90% and Index Tower Offices occupancy increased from 47% to 52%.
The overall Index Tower annualized rent increased by 38% year-on-year.
Emirates REIT’s Portfolio Value increased by 8% to $941mn, and the net asset value as at 31 March 2019 was $510m, or $1.70 per share.
The absence of valuation gains compared to Q1-18 led to a strong drop in net profit from $10m to $1.6m. However the FFO, which excludes revaluation movements, remains stable at $3.3m.
Equitativa recommended the distribution of the Final Dividend for 2018, of $0.04 per share, which should be distributed by 30 June 2019.
Upon approval of the Shareholders during the Annual General Meeting 2019, the shareholders on the register on 13 June 2019 will be able to benefit from this dividend distribution.
In total, shareholders will have received a dividend of $0.08 per share for the financial year 2018.
Sylvain Vieujot, group chairman of Equitativa said: “Equitativa’s strong active asset management of Emirates REIT’s portfolio and the completion in 2018 of two high yielding acquisitions have ensured the stabilisation of the portfolio in a challenging property market. We continue to maintain and grow occupancy in our main assets. The soft opening of Index Mall in June 2019 and the opening of DIFC’s Gate Avenue are driving strong tenants interest to Index Tower which should contribute to a continued growth of income in 2019.”