Emirates Reit first-half property earnings increase

Emirates Reit yesterday posted an 8 per cent rise in first-half earnings generated by its properties, thanks to higher rents and service charge ­income.

Revenue between January and June reached US$19.1 million, up 7.9 per cent from $17.7m for the same period last year.

Net income grew 6 per cent to $44.7m because of a $31m gain from the revaluation of its properties.

The company said its investment properties were valued at $613.4m as of June 30, up 9.6 per cent from $559.7m for the year-earlier period.

Emirates Reit has $1.3m of property that is being fitted out.

About $344m worth of its investment properties have been mortgaged against Islamic financing facilities.

Emirates Reit owns 1.9 million square feet of net leasable properties at eight buildings.

Last week, the company said its net asset value on June 30 stood at $1.52 a share, or $1.48 a share after paying a 4 US cents dividend for last year.

Its pre-dividend net asset value for the first half of last year was $1.44 a share.

Meanwhile, Emirates Reit has completed its second fit-out of a floor at Index Tower in Dubai International Financial Centre.

It owns 17 of the 25 office floors in the tower and is refitting five floors to offer smaller office units for small and medium-sized enterprises.

According to CBRE, commercial office rents in Dubai have remained stable over the past 18 months, with average annual rents in the central business district unchanged at Dh1,884 per square metre. But demand for space is ­growing.

“Over the past 12 months, there has been a notable rise in pre-leasing activity for Grade A offices, which underlines current demand for high-quality accommodation sought by corporate occupiers,” said Matthew Green, UAE head of research at the property consultancy.

mfahy@thenational.ae

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