Emirates REIT on Tuesday reported a profit of $24.8 million for the quarter ended 31 March 2024, up from $7.6 million in Q1 2023.
The net asset value continued to show strong growth, rising by 38 per cent year-on-year to close at $525 million, which translates to a NAV per share of $1.64. Total assets reached $1.073 billion, up 17 per cent year-on-year from $917 million in Q1 2023.
Total property income grew 15 per cent year-on-year to $19.7 million for first quarter, (Q1 2023: $17.2 million), thanks to the continued increasing occupancy level and improvement in rental rates.
Net property income increased 17 per cent to $16.6 million compared to $14.2 million in Q1 2023. Operating profit surged 22 per cent to $12.3 million for Q1 2024, up from $10.1 million in Q1 2023.
Total finance costs increased to $13.4 million for Q1 2024 from $12.8 million in Q1 2023, due to higher sukuk cost, leading to a funds from operations (FFO) figure of negative $1.1 million, up from negative $2.7 million in Q1 2023.
Unrealised revaluation gains totalled $25.9 million in Q1 2024, up from $10.3 million in Q1 2023, leading to total assets reaching $1.073 billion.
Reduction of the financing facilities with a finance-to-value (FTV) ratio of 41 per cent, down by 6.9 percentage points from 48 per cent in Q1 2023.
Commenting on Emirates REIT’s performance, Thierry Delvaux, CEO of Equitativa Dubai, said: “I am very pleased with these results that show the continued strong performance of Emirates REIT. It is in-line with the 18-month strategy that we launched in July 2023. Many leases signed during the last COVID-19-driven downturn are now due for renewal, which will continue to feed into the REIT’s revenue growth. We have a lot more work to do this year, and I am optimistic that 2024 will be an excellent and pivotal year for Emirates REIT.”
During the past 12 months, Emirates REIT increased occupancy significantly across its portfolio, while at the same time increasing rental rates.