Emirates REIT profits hit by revaluations

Dubai_real_estateEquitativa, the fund manager that runs Dubai’s biggest real estate fund, has stated its intention to continue its cost-cutting drive after posting its third quarter results and reporting an 81% in net profit. The fund, Emirates REIT, generated a 4% year on year increase in property income to $54.1 million in the first nine months on 2019. However, a drop in the value of its $1 billion property portfolio led to a revaluation loss of $1.3 million, reducing profit to $5.9 millio.  Equitativa told UAE-based National newspaper that the results represented an improvement on H1 figures when Emirates REIT suffered a $1.1 million drop in profits, adding that “the current lower revaluation losses are an indication of potential market recovery”.  Shares in the UAE’s listed real estate investment trusts have been trading below market value for some time due to the depressed property market and negative investor sentiment but whereas Emirates NBD Asset Management has cancelled tranches of share sales and looked to initiative share buybacks, Emirates REIT is looking to make further acquisitions in the current soft market while focusing on reducing costs and improving operational efficiency. ©2019 funds global mena

Executive Interviews

INTERVIEW: ‘Financing is the blood of Iran’s economy’

Amid a fresh wave of American sanctions, Romil Patel spoke to Meysam Hamedi, director of financial markets and instruments at Iran’s Securities & Exchange Organization (SEO).

INTERVIEW: Totally mega

In 2016, global consulting firm PWC forecast the emergence of five global ‘megatrends’ in the next two decades. Stephen Anderson, its Middle East clients and markets leader, talks about their...


South Africa asset management roundtable: Global rebound on ice

Experts discuss the investment implications of the coronavirus pandemic, a delayed rebound in global growth and dealing with South Africa’s energy issues head on. Chaired by Romil Patel in Cape Town.

South African roundtable: Taking the bull by the horns

Our panel discusses Chinese investment in Africa, financial institutions’ contribution to economic sustainability and regulatory concerns. Chaired by Romil Patel in Cape Town.