By Staff writer
Dubai-based Shari'a compliant real estate investment trust also says net asset value rises 8.7%
Emirates REIT, the first Shari'a compliant real estate investment trust listed on NASDAQ Dubai, has reported that its 2015 net profit rose by more than 26 percent to $61.5 million.
Total assets for the Dubai-based real estate investment trust increased by 24.8 percent to $741.3 million, a statement said, adding that the value of its investment properties rose by 17 percent to $673.2 million.
By year end, the net asset value of the REIT stood at $469.6 million, an increase of 8.7 percent year-on-year.
“We have continued to organically grow overall occupancy and leasing rates in our portfolio and have made good progress in the fit-out and leasing of Index Tower. The acquisition of the Jebel Ali School project during the year added further diversity and a secure long-term cash flow to the portfolio,” said Sylvain Vieujot, executive deputy chairman of Emirates REIT.
The company added that liabilities increased by 67.6 percent year-on-year to $271.8 million, mainly as a result of an increase in Islamic financing.
Vieujot said: “Looking ahead, while we are facing a more volatile and challenging macro-economic outlook, we remain optimistic of our continued ability to deliver consistent shareholder returns.
"Our focus on delivering top-quality office space for our existing and prospective tenants, the opportunity for ongoing improvements across our assets as well as a well-diversified and high-quality tenant base with an average lease expiry term of 8.5 years allows us to maintain stable income growth through market cycles.
"Additionally, our borrowing capability places us in a strong position to capitalize on cyclical market conditions for the execution of our acquisition strategy.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.