Net profit for the Shariah-compliant Emirates Real Estate Investment Trust (REIT) plunged to $1.6 million for the first quarter of 2019 from $10 million for the same period a year ago, its manager Equitativa said in a statement on Tuesday.
UAE-based Equitativa attributed the drop to the absence of valuation gains.
Total property income for the Dubai-based Emirates REIT rose 8.4 percent to $17.9 million for the first three months of 2019 compared to the same period last year.
Equitativa said the increase in total property income was led by the organic increase in occupancy in one property, Index Tower, and two acquisitions completed in 2018.
Occupancy at Index Tower went up 47 percent to 52 percent in the first three months of this year, boosting its overall annualized rent by 38 percent year-on-year, said Equitativa.
Occupancy at another property, Office Park, increased from 86 percent to 90 percent.
Emirates REIT’s portfolio value rose 8 percent for Q1 2019 to $941 million compared to the same period last year.
Its net asset value as at Mar 31 was $510 million, or $1.70 per share.
Emirates REIT is the world’s largest Shariah-compliant real estate investment trust. It currently owns 11 assets in the commercial, education and retail sectors.
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