Emirates REIT (REIT) AGM 2024 presentation summary

Market overview

• UAE real GDP grew 3.0% in 2023, with non-oil GDP up 5.6%; inflation was 3.3% and fiscal balance 5% of GDP.

• Dubai office rents rose 8.0% for Prime, 13.3% for Grade A, 18.2% for Grade B and 20.3% for Grade C stock in 2023.

• Dubai retail occupancy reached 84%, with rents up 17.6% in 2023; 160k sqm of new retail space was planned for 2024.

• Dubai had 220 schools and 365,000 students in academic year 2023–24; population growth and 39,000 new school enrollments supported education demand.

Portfolio and operations

• Portfolio value was USD 951m (AED 3.5bn) and NAV was USD 525m, or USD 1.64 per share, as at 31 March 2024.

• Portfolio included commercial, retail and education assets in Dubai, including Index Tower, Index Mall, Office Park and three schools.

• Occupancy reached 89% in Q1 2024, up 4.1 percentage points; rental rates increased 15%.

• Operating expenses were USD 12.4m for the last 12 months through Q1 2024, up 3%.

Financial highlights

• FY 2023 property income was USD 74.4m, up 10% YoY; net property income rose 12% to USD 62.1m and operating profit/EBITDA rose 37% to USD 44.0m.

• FY 2023 net finance cost increased 71% to USD 49.8m; loss before fair valuation/FFO was USD 5.7m, while profit for the year was USD 127.2m, including a USD 132.9m unrealized revaluation gain.

• Q1 2024 property income increased 15% YoY to USD 19.7m, net property income rose 17% to USD 16.6m and operating profit/EBITDA rose 22% to USD 12.3m.

• Q1 2024 profit was USD 24.8m, including a USD 25.9m unrealized revaluation gain; loss before fair valuation/FFO was USD 1.1m.

• At 31 March 2024, NAV was USD 524.5m, NAV per share USD 1.64 and financing-to-asset value 41%, down 7 percentage points YoY.