Dubai / Emirates Business
Emirates REIT delivered a strong financial and operating performance during 2015, consolidating its position as a leader in the UAE property asset management industry. By year end, the net asset value of the REIT stood at USD 469.6 million, an increase of 8.7% 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 investment property increase of 17% was largely driven by the addition of the Jebel Ali School (USD 30.0 million, including construction in progress), revaluation gains of USD 53.3 million mainly driven by the 10% increase of the portfolio occupancy and the fit-out (USD 14.7 million) and leasing of some floors in Index Tower.
Liabilities increased by 67.6% year-on-year to USD 271.8 million, mainly as a result of an increase in Islamic financing, which reflects the REIT’s proactive approach to balance sheet management, financing its existing projects and securing additional funds to support future growth.
Mr. Vieujot added: “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.”
Emirates REIT, the first Shari’a compliant real estate investment trust listed on NASDAQ Dubai, is a Dubai based diversified real estate investment trust established to principally invest in income-producing real estate in line with Shari’a principles. It operates under the Collective Investment Rules (“CIR”) of the Dubai Financial Services Authority (“DFSA”) and is categorized as a domestic fund, an Islamic fund, a property fund and a real estate investment trust and benefits from an exclusive Ruler’s Decree permitting to purchase properties in
onshore Dubai through its onshore Dubai branch.