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Emirates REIT says H1 rental income rising to $20.9m

Emirates REIT, the first Shari'a compliant real estate investment trust listed on NASDAQ Dubai, has announced that rental income across its properties rose by more than 28 percent in the first half of 2016.

Rental income grew to $20.9 million, an increase of 28.3 percent compared to the same period in the previous year, it said.

It added that total property income from rent, service fees and other income climbed by $4.5 million to $23.6 million but this was offset by a reduction in revaluation gains from $31.5 million in H1 2015 to $18.8 million.

The first half of 2016 closed with a 39 percent increase in funds From operations ("FFO"), demonstrating a strong growth in the underlying profitability of the REIT, the statement said.

"This is a result of the REIT's strategy which targets under-performing properties and uses its expertise to improve underlying cash generation. As the existing properties mature, and previous valuation gains are converted into cash returns, this trend is expected to continue," it added.

The total occupancy rate across the portfolio also increased to 77 percent from 67 percent year-on-year.

Sylvain Vieujot, CEO of the REIT Manager, said: “Emirates REIT’s business performance was positive in the first half of 2016. This is mainly reflected in the rising rental income which has grown during the reporting period.”

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