Dubai-based Emirates REIT, a real estate investment trust, has cited a “steady improvement” in the Dubai commercial real estate market, after posting a profit of 51 million dirhams ($13.9 million) in the first half of 2021.
The profit follows a loss of 72 million dirhams for the first half of 2020, according to results reported to Nasdaq Dubai.
As positive factors during the first half of 2021, the trust’s manager Equitativa cited the sale of a commercial floor in Index Tower, Dubai, and the receipt of outstanding rent payments from Jebel Ali School.
Equitativa said in a press release that earnings indicate that REIT’s investment portfolio has improved since the beginning of the COVID-19 pandemic, adding that the trust had seen total property income has increased by 8.1% from AED 124.9 million, including The unit divested 23.9 million dirhams.
“Driven by the payment of some overdue past rents by Jebel Ali School, the adjustment of expected credit loss provision lead to a net gain of $7 million (25.7 million dirhams) versus a previous net charge of $3.8 million (13.9 million dirhams) booked in the first half of 2020,” Equitativa said.
“The REIT’s EBITDA (earnings before interest, taxes, depreciation, and amortization) for the first half of 2021 increased by 93.2 percent year-on-year to $29.7 million (109.1 million dirhams) compared to $15.4 million (56.6 million dirhams) in the first half of 2020.”
Sylvain Vieujot, executive deputy chairman of Equitativa said they are “beginning to see a recovery” in the Dubai property market, fueled by the “highly proactive measures” by the government.
“Some positive milestones were achieved during the first half of the year, including the divestment of a half vacant shell and core floor at a significant valuation gain in Index Tower. We also signed an agreement with Jebel Ali School, resulting in a significant payment towards its outstanding rent,” he said.