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Abu Dhabi, UAEThursday 21 June 2018

Emirates REIT may issue sukuk certificates

The Reit's third quarter net profit jumps 178.8%

Emirates REIT, which invests in education, commercial and retail sectors, has a portfolio of 10 properties including Dubai's Index Tower. Antonie Robertson / The National
Emirates REIT, which invests in education, commercial and retail sectors, has a portfolio of 10 properties including Dubai's Index Tower. Antonie Robertson / The National

Emirates REIT, the Nasdaq Dubai listed Sharia-compliant real estate investment trust, said on Wednesday it will consider issuing sukuk certificates as third third quarter net income for the Sharia-compliant investment vehicle jumped.

Reit , the first to be listed in the UAE, will discuss the issuance of proposed Islamic bonds at the shareholders meeting on November 23 , it said in a statement, without giving details about the size or the timing of the planned sukuk .

Net profit in the three months ending September 30 climbed 178.8 per cent to US$31.6 million from $11.3m, thanks to growth in its rental income, which increased 21.4 per cent to $13.9m from $11.4m a year earlier. Total property income recorded a year-on-year advance of 22.8 per cent to $15.6m .

“The positive results, we continue to see at Emirates REIT, are a true testament to the strong fundamentals of the prime assets we own,” said Sylvain Vieujot, the chief executive of Equitativa Dubai, the firm that manages the Reit . “We remain focused on maintaining the momentum across the business as we continue to explore acquisition opportunities that would further strengthen our portfolio to deliver maximum value for our shareholders.”

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The company’s portfolio value topped Dh3 billion during the third quarter following the $35.4m acquisition of European Business Centre in Dubai Investments Park. Total occupancy across 10 portfolio properties including Dubai's Index Tower stood at 84 per cent at the end of September, according to the statement from Emirates REIT, which primarily invests in education, commercial and retail sectors .

Trading in Reits is similar to stocks and bonds on an exchange, paying out dividends from rent to investors. They have been gaining traction in the Saudi Arabia and the UAE, the two biggest Arabian Gulf economies.

Las month, Invest AD, the Abu Dhabi asset manager, said it will launch a Reit in a joint venture with Canada’s Brookfield Asset Management, targeting investment opportunities in the UAE.

Brookfield, which has US$250 billion of assets under management, will develop other real estate investment products in collaboration with Invest AD in addition to the Reit, which will be formed under the regulatory framework of Abu Dhabi Global Market, the capital’s financial free zone.

ENBD Reit, which was launched by Dubai-based lender Emirates NBD, is the second Reit listed on Nasdaq Dubai.