Emirates REIT Reports 24% Rise in Property Income to $39M
Emirates REIT, a Dubai-based investment trust that owns and manages income-generating real estate, has reported strong results for the first half of the year. The company, which follows Shari’a principles in its operations, saw property income rise by 24% to $39 million. This growth was mainly due to higher occupancy levels, which reached 95%, and an increase of 14% in rental rates.
Strong Income Growth
The company’s net property income (the amount earned after expenses) also went up by 24% to $34 million. Emirates REIT explained that this was because of the strong performance of its portfolio of office, retail, and education-related properties. As a result of this positive performance, the value of its investment properties rose by 34%, reaching $1.1 billion.
Lower Debt Levels
Emirates REIT has also managed to reduce its debt significantly. Its Loan-to-Value (LTV) ratio, which measures debt compared to the total value of assets, dropped to 20% in the first half of this year. This is a big improvement compared to 40% in the same period last year. The company said this was achieved through the sale of selected assets last year and the refinancing of its Sukuk (Islamic bonds).
Reduced Finance Costs
With lower debt, the company’s finance costs also fell sharply. Net finance cost decreased by 57% to $12 million. This has strengthened its overall financial position and freed up more money for dividends and future investments.
Dividend Payments
During the first half of the year, Emirates REIT distributed $7 million in dividends to its shareholders, reflecting confidence in its cash flow and business performance.
Sukuk Refinancing Deal
One of the major financial moves by Emirates REIT was the refinancing of its existing sukuk. In December, the company refinanced its sukuk due in 2025 with a new $205 million sukuk due in 2028. The new sukuk carries a profit rate of 7.5% for the first three years, which then increases to 8.25% in the fourth year.
The new sukuk has been rated BB+ by Fitch Ratings, showing confidence in the company’s financial stability. Emirates REIT said that the lower cost of this new financing demonstrates its strong credit profile, solid cash flow, and stable operations. The refinancing was arranged by HSBC, through its Private Credit and Debt Capital Markets teams.
Outlook
Emirates REIT’s strong half-year performance highlights the company’s ability to benefit from Dubai’s growing real estate market. With high occupancy, rising rental income, reduced debt, and successful refinancing, the trust is in a stronger position to continue delivering value to its investors.
As Dubai’s property market remains active, Emirates REIT’s strategy of focusing on quality, income-generating assets and maintaining financial discipline could help it build further growth in the coming years.
Published: 28th August 2025
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