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Equitativa, the largest REIT manager in the GCC and manager of Emirates REIT (CEIC) Limited, reports the full year financial results for Emirates REIT, the world's largest Shari'a compliant REIT, for the period ending 31 December 2018.
Emirates REIT has recorded a year-on-year total property income growth of 15.3%, driven by a 35% increase in annualized rent in Index Tower.
Index Tower’s occupancy has now reached 50%, a significant increase from 2017.
Following the acquisition of Lycée Français Jean Mermoz, a French curriculum school in Al Quoz, in the second quarter of 2018 and of three additional fully leased floors in Index Tower in December 2018, the Net Leaseable Area (NLA) for the period increased by 9.3% to 223,192 m2 (2.4 million sq.ft.).
Focusing on future growth, these strategic acquisitions will help prepare for further increase in revenue in the coming years.
In the current challenging market, Emirates REIT recorded a 54.6% drop in valuation gains due to a significant one-off provision on one of its assets.
Equitativa continues to invest in the diversification and improvement of its assets, both through acquisitions and asset enhancement, to further reinforce the portfolio’s market position and value. In 2018, Emirates REIT's asset value passed the USD 1 billion threshold for the first time, marking an increase of 6.4% over the previous financial year.
KEY HIGHLIGHTS
Total property income stands at USD 69.9 million, a 15.3% increase from 2017
Gross Asset Value reached USD 1.01 billion
Net Asset Value stands at USD 1.74 per share
Total dividend paid of USD 24 million
Dividend Yield of 10.7%
Net Leasable Area increased by 9.3% to 223,192 m2 (2.4 million sq.ft.)
Occupancy rate of 75.4%
Acquisition of the Lycée Français Jean Mermoz
Acquisition of 3 additional fully leased floors in Index Tower
EQUITATIVA ANNOUNCES FULL YEAR RESULTS FOR EMIRATES REIT
The property income for Emirates REIT grew by a solid 15.3% compared to 2017, to a total of USD 69.9 million. The rental income stands at USD 61.3 million, marking a 13.6% increase over 2017.
The property income growth was mainly supported by the increase in the leasing of office units in Index tower. The Net Asset Value remained at USD 1.74 per share, or USD 520 million, which at the current share price translates into a yield of 10.7%, including the two dividend distributions totalling 8 cents per share (USD 24.0 million).
The gearing ratio stood at 45.9%.
Sylvain Vieujot, CEO of Equitativa, commented: "Emirates REIT continues to deliver promising results to its shareholders, despite a challenging real estate market. Our focus on maintaining a high-quality diversified portfolio of real assets, and on enhancing the REIT’s rental revenues and improving its operational efficiencies, have proven to be a successful strategy in these challenging times.”
Equitativa also reported that the Index Mall fit-out of the retail outlets is now completed and ready to open shortly, thereby connecting tenants and visitors to Index Tower directly to the DIFC’s Gate Avenue.
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