Emirates REIT posts 26% rise in 2015 net profit

Dubai-based Shari'a compliant real estate investment trust also says net asset value rises 8.7%
Emirates REIT posts 26% rise in 2015 net profit
By Staff writer
Wed 17 Feb 2016 02:10 PM

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.”

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