Dubai: Higher rental income from its portfolio is starting to add clout to Emirates Reit’s bottom-line numbers, going by the unaudited financial results for the nine months ending September 30. Total portfolio value came to $742 million, a year-over-year gain of 13 per cent, while property income generated $36.3 million from a 22 per cent increase.
Specific to the third quarter, rental income was higher by 19.7 per cent to $11.4 million (against Q3-15’s $9.5 million). As of September 30, occupancy rate across the Emirates Reit portfolio was a robust 80 per cent.
“Emirates Reit continues to record strong growth in cashflow, which should persist as occupancy increases and the portfolio grows,” said Sylvain Vieujot, Chairman of Equitativa and CEO of Emirates REIT Management, in a statement.
The weighted average lease expiry of the total portfolio was 8.5 years. The increase in property income is mostly attributable to the leasing of the Index Tower Offices (which stands at 24 per cent as of end September) and that of the Jebel Ali School.
During the third quarter, construction of the new Jebel Ali School campus was completed on time and within budget. The property, located in the Akoya development in Dubailand, saw an 18.3 per cent post-completion valuation gain of $12.8 million.
Another school development was also launched, with the acquisition of a leasehold plot in Dubai Investments Park. (At the end of the third quarter, the education sector represented 28 per cent of the Reit’s portfolio income, providing a “strong and stable income stream”.)
The net asset value increased to $1.60 a share, or $480.7 million. The funds from operations, or cash profit, increased to $7.8 million.
