Emirates REIT reports 22% rise in property income and sharp reduction in finance costs

Real Estate

Emirates REIT reports 22% rise in property income and sharp reduction in finance costs

Equitativa (Dubai) Limited has announced strong financial results for Emirates REIT for the third quarter of 2025, highlighting robust income growth, improved occupancy levels and a significantly strengthened balance sheet.

Total property income for the first three quarters of 2025 rose by 22 per cent year-on-year on a like-for-like basis, reaching USD 60 million. Portfolio occupancy increased to 94 per cent as of 30 September 2025, up from 92 per cent in the same period last year, reflecting sustained tenant demand and proactive asset and lease management across the portfolio.

Emirates REIT also reported a substantial improvement in its capital structure. Finance-to-Value (LTV) was reduced to a stable 20 per cent, down from 36 per cent in Q3 2024, marking a 16 per cent reduction year-on-year. Net finance costs fell sharply by 57 per cent to USD 17 million, compared to USD 40 million in the previous year, supported by refinancing initiatives and a reduced debt profile.

Funds From Operations (FFO) reached USD 14 million, a significant turnaround from a loss of USD 0.5 million in Q3 2024, which included the impact of divested investment properties in the previous financial year. Revaluation gains of USD 171 million were recorded during the period, bringing the total asset value to USD 1.22 billion, compared to USD 1.17 billion a year earlier, despite property disposals in 2024.

Net Asset Value (NAV) reached a historic high of USD 886 million, representing a 37 per cent year-on-year increase. On a per-share basis, NAV rose to USD 2.78, up from USD 2.03 in Q3 2024.

From an operational perspective, net property income remained resilient at USD 52 million, broadly stable year-on-year despite the sale of assets in 2024. The performance underscores the strength and income-generating capacity of the REIT’s diversified portfolio.

Commenting on the results, Thierry Delvaux, CEO of Equitativa Dubai, said the performance reflects disciplined execution and strategic balance sheet management. He noted that Emirates REIT delivered higher property income while materially reducing finance costs, strengthening its financial position and supporting sustainable long-term growth. Delvaux added that the reduced leverage and record Net Asset Value position the REIT to continue generating attractive returns for shareholders.