Emirates REIT (REIT) Q1 2024 earnings summary

Executive summary

• Q1 2024 profit reached USD 24.8m, up from USD 7.6m YoY, including a USD 25.9m unrealized revaluation gain; NAV rose 38% to USD 525m.

• Total property income increased 15% to USD 19.7m, while portfolio occupancy reached 88.6%, up 4.1 p.p. YoY.

Financial highlights

• Net property income grew 17% to USD 16.6m; operating profit rose 22% to USD 12.3m YoY.

• Profit for the period was USD 24.8m versus USD 7.6m YoY, with net unrealized revaluation gains of USD 25.9m versus USD 10.3m.

• Total finance costs increased to USD 13.4m from USD 12.8m; FFO remained negative at USD 1.1m, improving from negative USD 2.7m YoY.

Segment performance

• Office Park occupancy rose 8.5 p.p. QoQ; rental rates increased 5.1% QoQ and 7.6% YoY.

• Loft Offices occupancy increased 4.3 p.p. QoQ and 9.1 p.p. YoY; rental rates rose 3.0% QoQ and 7.4% YoY.

• European Business Centre occupancy reached 86.6%, up 2.7 p.p. QoQ and 16.6 p.p. YoY; rental rates rose 4.2% QoQ and 14.3% YoY.

• Index Tower occupancy reached 83.9%, up 0.9 p.p. QoQ; blended rental rates rose 1.7% QoQ and 12.6% YoY.

• Q1 leasing comprised 30 new leases covering 9,031 sq.m., 49 renewals covering 10,069 sq.m. and 20 exits covering 2,447 sq.m.