UAE – Mubasher: Equitativa, the largest REIT manager in the GCC and manager of Emirates REIT (CEIC) Limited, said that Emirates REIT’s property income grew 15.3% year-on-year, during the year ended 31 December 2018, recording $69.9 million.
The income growth was attributed to a 35% increase in annualised rent in Index Tower, Equitativa said in a statement on Wednesday.
Index Tower’s occupancy has now reached 50%, compared to 2017.
“Following the acquisition of Lycée Français Jean Mermoz, a French curriculum school in Al Quoz, in the second quarter of 2018 and of three additional fully leased floors in Index Tower in December 2018, the Net Leaseable Area (NLA) for the period increased by 9.3% to 223,192 m2 (2.4 million sq.ft.),” the statement highlighted.
Equitativa noted that such acquisitions will help prepare for further increase in revenue in the coming years.
In view of the current challenging market, Emirates REIT recorded a 54.6% drop in valuation gains due to a significant one-off provision on one of its assets.
It is worth mentioning that Equitativa continues to invest in the diversification and improvement of its assets, both through acquisitions and asset enhancement.
By the end of 2018, Emirates REIT's asset value increased by 6.4% year-on-year, registering $1 billion.
“Emirates REIT continues to deliver promising results to its shareholders, despite a challenging real estate market. Our focus on maintaining a high-quality diversified portfolio of real assets, and on enhancing the REIT’s rental revenues and improving its operational efficiencies, has proven to be a successful strategy in these challenging times,” Sylvain Vieujot, CEO of Equitativa, commented.
