Emirates REIT Reports Record Property Income and Asset Growth in 2023

Equitativa, the manager of Emirates REIT, has reported a remarkable achievement in its financial performance for the fiscal year 2023. The Shariah-compliant real estate investment trust saw its highest-ever property income, totaling $74 million, which represents a significant 10 percent year-on-year increase from the previous fiscal year.

Net property income also experienced a notable surge of 12 percent, reaching $62 million, driven by strategic asset performance optimization. This growth translated into a substantial operating profit of $44 million, marking a significant 37 percent increase from the previous year.

Despite challenges posed by rising benchmark rates and increased finance costs, Emirates REIT managed to report a profit of $127 million in 2023, showcasing a robust 55 percent year-on-year growth. The unrealized gain on revaluation of investment properties stood at $133 million, further highlighting the strong operating performance of the portfolio assets in a thriving real estate market.

Thierry Delvaux, CEO of Equitativa, expressed his satisfaction with the REIT’s performance, stating, “The past year represents a major milestone for Emirates REIT, with record revenues and positive operating profits built on a strategy based on asset performance optimization.”

Delvaux also highlighted the dynamic nature of the UAE’s real estate market, pointing out the strong demand for premium property spaces and the growing interest from international companies in relocating their headquarters or key offices to the country. This trend bodes well for the continued growth and attractiveness of the real estate sector in the UAE.

The Equitativa CEO emphasized the role of the asset management team in optimizing efficiencies across the portfolio, with increased occupancy rates, passing rental rates, and the number of tenants. The strong performance of key assets such as Index Tower, European Business Centre, and Loft Offices further demonstrates the REIT’s successful leasing activities and portfolio optimization efforts.

Emirates REIT’s stellar financial results for 2023 not only reflect its robust performance but also underscore the appeal and potential of the real estate sector in the UAE. With a focus on quality, sustainability, and attracting foreign corporations, the REIT is well-positioned to capitalize on the positive momentum in the market and drive further growth in the coming years.