Emirates Reit's property income rises 24% in Q1

Equitativa (Dubai) Limited, manager of Emirates Reit, on Monday reported a total property income of $19 million in Q1 2025, growing 24 per cent year-on-year on a like-for-like basis.

- Somshankar Bandyopadhyay [e-mail]

Operational efficiency remained a key driver of performance in Q1 2025, with property operating expenses down 8.4 per cent year-on-year to $3 million. Despite the exclusion of income from divested assets, net property income held steady at $16 million, underscoring the resilience and income-generating strength of the core portfolio. At the same time, 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.

The fair value of investment properties rose 14 per cent year-on-year to $1.2 billion (Dh4.0 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.