Dubai-Mubasher: MubasherTrade Research (MTR) set the price target (PT) of Emirates REIT at $1.52, while maintaining “Buy” recommendation, according to a statement.
MTR’s rating came after the bank announced its unaudited financials for the second quarter of 2016.
Net profits fell 64% year-on-year to AED 34.89 million ($9.5 million) in Q2-16 as a result of a decline in revaluation by 73% year-on-year to AED 6.7 million ($24.610 million), MTR noted.
However, the company maintained total property income growth (+23% year-on-year) as a result of full contribution from Jebel Ali School's land rent in Q2-16, and higher rental income.
“We believe that REIT will maintain its growth momentum, to be driven by leasing the retail area in "the index tower" by end of 2016, the startup of Jebel Ali School's operations, pursuing more acquisitions in the education and office segments,” the statement highlighted.
