Equitativa, the manager of Emirates REIT, announced that the REIT achieved strong financial results in the year, attributed to effective portfolio management and a robust market for commercial real estate in Dubai. The net profit for the year increased by 30 percent to $82 million, with a net unrealized gain of $79 million on portfolio revaluation. The occupancy rate across Emirates REIT’s portfolio rose to 85 percent by December 31, 2022, which contributed to an 11 percent increase in core rental, fee, and other income, amounting to $69 million, compared to the previous year’s $62 million. Additionally, the REIT maintained a focus on cost optimization, leading to a 4 percent decline in property operating expenses to $12 million in 2022. As a result, the net property income margin improved by four percentage points to an impressive 94 percent, with net property income for the period at $55 million. Excluding the one-off gain/loss on the disposal of investment properties, net property income increased by 15 percent year-on-year, indicating the strong market for the REIT’s core assets. The fair value of the REIT’s investment properties was $785 million as of December 31, 2022, reflecting a 6 percent increase from the previous year. The net asset value grew by 29 percent year-on-year to $373 million, equivalent to $1.17 per share. The REIT’s executive deputy chairman, Sylvain Vieujot, credited the robust market for premium commercial real estate in Dubai for the impressive results. He also highlighted the successful refinancing of the $400 million sukuk in 2022.
In other news, in July last year, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, introduced incentives for property investment funds in Dubai through Decree No (22) of 2022. This decree covers all real estate investment funds, including those in private development zones and free zones, as well as all real estate in Dubai, excluding properties located in the Dubai International Financial Centre.