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Dubai: Helped by a larger portfolio of assets, Emirates Reit (real estate investment trust) recorded a net profit of $48.56 million (Dh178.34) for 2014, which is a 39.3 per cent increase over the year earlier.
Net profit stripped off revaluation gains and IPO costs was up 43.9 per cent to $11.89 million. The Reit operator expects to pay a dividend to shareholders in June.
It was in April that the entity released on Nasdaq Dubai. Net proceeds from the float were used to fund two acquisitions.
In June, it made its largest acquisition, investing in 15 plus commercial floors and 706 car parking spaces in the DIFC’s Index Tower. Also, late last year, it acquired a further half floor.
This raised Emirates REIT’s ownership of the office floors in this Grade A building to 67 per cent, ‘placing the REIT in a very good strategic position, whereby it controls the offices, the retail and the car park of this prime Dubai landmark’, said a statement.
By end 2014, the value of its portfolio — made up of seven properties — had nearly doubled to $575.3 million (Dh2.1 billion) as compared to a year earlier.
“We saw a number of transformational acquisitions which have doubled the assets of the Reit to over Dh2 billion,” said Sylvain Vieujot, Executive Deputy Chairman.
“Looking ahead we remain optimistic about commercial real estate investment in the UAE. We take a long-term view on acquisitions and continue to look for assets across all areas of the commercial sector.
“In the meantime, we are focused on leasing the commercial floors at Index Tower and finalising our plans for the reconstruction of the retail space which, together, will deliver significant value to our shareholders.”
Another property, the Indigo 7 on Shaikh Zayed Road has seen occupancy levels cross 90 per cent compared to 55 per cent 12 months ago.
By the numbers
In 2014, Emirates Reit secured a 42 per cent reduction in borrowing rates on all its financing facilities. Overall debt levels as of end December was a “healthy” 25.8 per cent of total assets.
Net asset value per share rose to $1.44 from $1.35 a share as of end December 2013. Including dividend paid of USD 0.05 per share this represents an annualised total return of over 10.3 per cent.
Source: Staff Report, gulfnews.com