Dubai
Riding on the back of higher rental income, the Emirates Reit saw cash profit (or fund from operations) gain 37.6 per cent to total $11.3 million (Dh41.5 million) for 2016.
Rental income swelled the real estate investment trust’s topline to the tune of $45.3 million, up by 22.8 per cent from 2015. Total property income also gained in unison, by 22.2 per cent to $50.7 million (it was $41.5 million in 2015).
Growth in rental income was “principally attributable to increased leasing at Index Tower, and rent from the new British Columbia Canadian School”, the fund operator said in a statement. As of end 2016, total occupancy across the portfolio had reached 81 per cent and the weighted average lease expiry of the total portfolio was stable at 8.5 years.
“Emirates Reit continues to offer strong total returns despite the slower market for commercial property,” said Sylvain Vieujot, CEO of Equitativa Dubai, the Reit’s manager. “Our funds from operations have grown by 38 per cent demonstrating a conversion from valuation gains into actual cashflow.
“The efforts allowed us to take advantage of the challenging environment to reduce operating costs. Our experience in developing schools has been very successful and we expect the Reit to continue investing in the education sector.”
As of December 31, the total portfolio value was $752.7 million, a year-on-year increase of 12 per cent. The Net Asset Value was $1.65 per share (or $493 million). Total return for the full year 2016 was 10.18 per cent.