Emirates REIT (REIT) AGM 2023 presentation summary

FY 2022 financial performance

• Total property income was $67.3m, down 1.8% YoY; net property income was $55.3m, down 1.3%, or up 14.6% excluding asset-disposal one-offs.

• Net profit reached $82.0m, up 29.9%; unrealized revaluation gain was $78.8m, up 76.3%, and EPS was $0.257, up 29.8%.

• Fund expenses rose 48.3% to $21.7m, primarily due to $6.8m of Sukuk refinancing fees; net finance costs increased 2.9% to $29.0m.

• Investment property fair value rose 6.5% to $784.9m; NAV increased 28.6% to $372.6m, NAV/share rose to $1.17, and FTV improved to 49.8%.

Portfolio operations

• FY 2022 occupancy increased 12.7 p.p. to 84.5%; on a like-for-like basis excluding Jebel Ali School, the increase was 15.4 p.p. YoY.

• At Q1 2023, portfolio occupancy was 84.5%, up 2.9 p.p. YoY; commercial passing rents rose 12.7% to AED 1,647/sqm/year, and like-for-like WALE increased to 7.1 years.

• Index Tower occupancy was 78.6% in Q1 2023, with passing rates up 21% YoY; Office Park occupancy was 88.0%, with rents up 7.3%.

• Indigo 7 was fully leased as of June 12, 2023; Trident Mall occupancy was 75.8% at March 31, 2023, up 4.3 p.p. YoY.

• Durham School opened in September 2022 and reported enrolment growth in its second year; Jebel Ali School was sold in May 2022 for AED 233.5m, including settlement of outstanding liabilities.

Q1 2023 financial update

• Total property income was $17.2m, up 1.1% QoQ; net property income was $14.2m, down 0.4%, while net profit was $7.6m, down 41.3%.

• Investment property value rose 1.5% QoQ to $797.0m; NAV/share increased 2.0% to $1.19, Islamic financing fell 5.0% to $439.9m, and FTV improved to 48.0%.

• Q1 2023 net property income increased 16.4% YoY excluding Jebel Ali School’s net income impact.