Thursday 4 June 2020

Equitativa posts steady Q1 growth, portfolio value up 8pc

DUBAI, June 12, 2019

Equitativa, the largest REIT (real estate investment trust) manager in the GCC region, has registered steady growth in the first three months of 2019 with its portfolio value surging to Dh3.5 billion ($941 million), up eight per cent from $870 million last year.

Announcing the results for the period ending March 31, 2019, Equitativa said its total net asset value stood at $510 million during the period at $1.70 per share.

The Dubai-based group had announced a steady 8.4 per cent increase in total property income to $17.9 million from $16.5 million.

Despite the loss of income from DIP school, the active management of Emirates REIT’s portfolio led to a strong increase in Total Property Income which more than compensated for the related reduced income, it stated.

This increase in total property income was led by the organic increase in occupancy in Index Tower and the two acquisitions completed in 2018.

During Q1 2019, Office Park occupancy increased from 86 to 90 per cent and Index Tower offices occupancy increased from 47 to 52 per cent. The overall Index Tower annualised rent increased by 38 per cent year-on-year.

Equitativa, also the manager of Emirates REIT, the world’s largest shari'a compliant real estate investment trust, said the absence of valuation gains compared to Q1 2018 led to a strong drop in net profit from $10 million to $1.6 million.

However the FFO, which excludes revaluation movements, remains stable at $3.3 million, it stated.

Equitativa has recommended the distribution of the final dividend for 2018, of $0.04 per share, which should be distributed by the month end.

In total, shareholders will have received a dividend of $ 0.08 per share for the financial year 2018.

Group chairman Sylvain Vieujot said: "Equitativa’s strong active asset management of Emirates REIT’s portfolio and the completion in 2018 of two high yielding acquisitions have ensured the stabilisation of the portfolio in a challenging property market."

"We continue to maintain and grow occupancy in our main assets. The soft opening of Index Mall in June 2019 and the opening of DIFC’s Gate Avenue are driving strong tenants interest to Index Tower which should contribute to a continued growth of income in 2019," he added.-TradeArabia News Service


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