Losses get steeper for Dubai real estate fund Emirates REIT, totals $244.2m
Drop in rental income, revaluation changes cause profit crash at Emirates REIT
Dubai: Losses at the Dubai-focussed real estate fund Emirates REIT widened during 2020, totaling $244.2 million from $26.3 million a year ago. This was brought on by steep revaluation changes on the fund’s portfolio, while rental income declines was another factor.
Rental income dropped 9.7 per cent to $64.5 million a year ago. But the fund managers will try to look at the positives in preparing for a possible turnaround. Through last year, it entered into 97 new leases while renewing 142 of them. Occupancy levels across its portfolio was at 69 per cent.
The portfolio includes the GEMS World Academy campus, Index Tower and Trident Grand Mall, among others. The combined value is at $690.3 million.
The results announcement was delayed by a week. Emirates REIT had informed that the delay was “due to the external auditors needing additional time to review the final property valuation reports from one of Emirates REIT’s valuers. Such reports are being produced later than usual as a result of one of the valuers being appointed late, following discussions with the DFSA.”