While many industries are battling to survive, the Dubai property sector is the winner. It seems the good times keep on running. Emirates REIT has made the latest edition of the strong signals of the status quo of the emirate’s real estate coming even more as record breaking results of 2023 have been announced. According to their annual report, the Sharia-compliant real estate investment fund recorded the biggest property income ever, USD 74 million, last year – which is really great news!
That’s a massive 10% increase from 2022. Even better, on a “like-for-like” basis removing any effects of asset sales, income growth was a super impressive 13%. Clearly their portfolio of premium commercial, retail and educational buildings across Dubai are in high demand. Occupancy rates also rose nearly 2 percentage points to a healthy 86%.
With rents and valuations continuing to climb, it’s no surprise operating profits soared an eye-popping 37% to USD 44 million. But Emirates REIT’s success goes far beyond just income statements – their total asset value is now over USD 1 billion for the first time. Meanwhile, the net asset value (NAV) shareholders enjoy grew 34% to reach USD 500 million.
In real estate, rising tides certainly do seem to be lifting all boats! The unrealized gain from increasing property prices alone was a whopping USD 133 million. Independent valuations showed the worth of their investment portfolio jumped 18% year-on-year. It’s a great sign that Dubai’s real estate market remains robust despite global economic headwinds.
Emirates REIT’s CEO Thierry Delvaux was rightly proud of the results. He credited the skill of their asset management team for optimizing efficiency and performance across assets. Their strategy of focusing on premium commercial, retail and educational buildings in Dubai’s top locations is clearly paying off. With occupancy up, passing rents 10% higher and a healthy balance sheet, the future looks bright for continued growth.
For investors, it’s reassuring to see such a prominent real estate player thriving. As the first Sharia-compliant REIT in the UAE, Emirates REIT has blazed a trail since its 2014 launch. The latest record-breaking income, rising values and impressive returns show Dubai’s property sector remains a lucrative option even in turbulent times. It seems the emirate’s status as a safe haven for regional and international capital is as strong as ever.
With property prices and rents still moving north, Emirates REIT is well placed to take further advantage. Their high-quality portfolio and experienced management leave the REIT well positioned to keep maximizing returns. It seems the golden age of Dubai real estate is nowhere near over yet!
