Emirates REIT (REIT) H1 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in H1 2025, with portfolio assets like Index Tower reaching high occupancy and rental rates, reflecting a long-term value creation strategy.

• Net Asset Value (NAV) reached a historic high of $886 million, up 57% year-on-year, or $2.78 per share.

• Occupancy improved to 95%, supported by strategic asset management and refurbishment initiatives.

• Finance-to-value ratio reduced to 20% from 40% year-over-year, reflecting significant deleveraging.

• Dividend of $7 million paid in H1 2025, with priorities on maximizing returns, progressive dividend policy, and potential share buybacks.

Financial highlights

• Total property income increased 24% year-on-year on a like-for-like basis to $39.2 million, despite divestment of two assets.

• Net property income reached $34 million, with operating profit (EBITDA) at $18.8 million, down 26% due to higher fund expenses.

• Funds from operations (FFO) increased 4.9x year-on-year to $7.2 million, driven by lower financing costs.

• Net profit for the period grew 2.9x to $185 million, with net unrealized gains on property revaluations up 2.7x to $177 million.

• Finance costs dropped 57% to $11.5 million after Sukuk refinancing.

Outlook and guidance

• Management remains confident in paying a second dividend later in the year, subject to performance.

• Share buyback program is approved and will be considered after dividend payout.

• Growth strategy focuses on careful, long-term asset selection, with ongoing market monitoring for opportunities.

• Positioned for sustainable growth and stable returns, supported by robust market fundamentals and a diversified tenant base.

• Continued focus on active asset management, cost optimization, and progressive dividend policy.