By Andy Sambidge
Shari'a compliant regulated real estate investment trust says net profit rose 194% in first half of 2014
Emirates REIT Limited, the Shari'a compliant regulated real estate investment trust, has announced a 194 percent rise in net profit during the first six months of 2014.
The trust, incorporated in the Dubai International Financial Centre and listed on NASDAQ Dubai, said net profit soared to $34.15 million from $11.61 million for the same period in 2013.
Portfolio value increased by 73 percent, to $559.65 million, a statement said.
Since its listing in April, Emirates REIT said it has used the net proceeds of the IPO to fund two successful acquisitions.
In May, the REIT acquired Le Grande Community Mall for AED118.2 million. Le Grande consists of 22 individual retail and food and beverage units on the ground and podium floors, as well as 161 basement car park spaces and is located in the Dubai Marina area.
Last month, the REIT entered into an agreement with Emirates NBD Properties to acquire 15.64 office floors and 706 car parking spaces in the DIFC's Index Tower, for a cash consideration of approximately AED613.4 million. Its largest acquisition to date, it raises the REIT's ownership of the office floors in this Grade A building to 67 percent
With these acquisitions, Emirates REIT said its property portfolio grew to 11 properties within Dubai.
Abdulla Al Hamli, chairman of the REIT Manager, said: "Since Emirates REIT became a public listed entity in April, I am pleased to report strong progress at both a financial and operational level.
"The two acquisitions demonstrate that there are still significant opportunities within the Dubai market to invest at attractive prices in prime buildings, which offer substantial growth. We will continue to work on our sizeable acquisition pipeline, located mainly in Dubai and across all commercial sectors."