Emirates Reit reports strong Q1 2025 with 24% rise in property income

Emirates REIT (real estate investment trust) has recorded total property income of $19 million in the first quarter of 2025, marking a 24 per cent year-on-year growth.

Operational efficiency remained a key driver of performance in the first quarter of 2025, with property operating expenses down 8.4 per cent year-on-year to $3 million.

Despite the exclusion of income from divested assets - Trident Grand Mall and Office Park, net property income held steady at $16 million, the parent entity, Equitativa (Dubai) announced.

Net finance costs declined sharply by 57 per cent to $6 million, driven by the successful Sukuk refinancing in late 2024 and reduced financing exposure, directly enhancing earnings and cash flow.

Reflecting the ongoing momentum in the UAE property sector, the fair value of investment properties rose 14 per cent year-on-year to $1.2 billion (AED 4.0 billion) despite strategic asset disposals. This growth was underpinned by unrealised revaluation gains of $149 million.

Portfolio fundamentals remained exceptionally strong, with occupancy reaching 95 per cent, supported by a 17 per cent year-on-year increase in commercial and retail rental rates. This performance reflects Dubai’s robust leasing environment and sustained demand for high-quality real estate.

"At the start of last year, we made a commitment to our shareholders that our efforts would position Emirates REIT on a path for sustained growth, and these results demonstrate how far we have come in achieving this," said Thierry Delvaux, CEO of Equitativa Dubai.

"By reducing financing costs and maximizing returns across our portfolio, we have achieved a leaner and more efficient capital structure for the REIT that will enable us to deliver sustainable returns. We are confident that 2025 will enable us to fully capitalise on our strong position and clear strategy in a dynamic market."

Earlier this month, the shareholders of Emirates REIT approved the resolution to distribute a final cash dividend of $7 million or $0.02 per ordinary share, for the financial year ending on December 31, 2024, as well as authorising the REIT manager to allow the payment of another dividend later in the year.