Equitativa Reports Strong FY2025 Performance for Emirates REIT with 20% Rise in Net Property Income

Real Estate

Equitativa Reports Strong FY2025 Performance for Emirates REIT with 20% Rise in Net Property Income

Equitativa (Dubai) Limited has announced robust financial results for Emirates REIT (CEIC) PLC for the financial year ending December 31, 2025, highlighting significant growth in income, improved occupancy levels, and a strengthened balance sheet.

The REIT recorded a 20% year-on-year increase in net property income, reaching USD 71 million compared to USD 59 million in FY2024. Funds from Operations (FFO), excluding gains from property disposals, surged to a record USD 25 million, marking a sharp turnaround from a negative USD 5 million in the previous year.

Strong operational and financial performance

Occupancy levels rose to 96%, up from 94% in FY2024, reflecting sustained demand for high-quality commercial real estate assets in the UAE. The REIT also reported a 16% reduction in property operating expenses, which fell to USD 9.7 million, further enhancing operational efficiency.

In addition, net finance costs dropped significantly by 61% to USD 19 million, driven by successful refinancing initiatives. The company refinanced its Sukuk II at a lower coupon rate and restructured an existing USD 50.1 million Islamic financing facility with Ajman Bank under improved terms.

As a result, the loan-to-value (LTV) ratio improved to 20%, down from 24% in FY2024, indicating a healthier capital structure.

Asset growth and shareholder returns

Revaluation gains of USD 191 million lifted total asset value to USD 1.25 billion, despite the disposal of two investment properties in the previous year. Net Asset Value (NAV) increased by 27% year-on-year to USD 896 million.

The REIT also resumed dividend distributions, paying USD 14.5 million to shareholders during FY2025, supported by stronger cash flows and improved financial stability.

Strategic outlook amid global uncertainty

Commenting on the results, Thierry Delvaux said the company delivered an “excellent year,” citing record funds from operations, high occupancy rates, and reduced financing costs as key drivers of performance.

He noted that while the United Arab Emirates continues to demonstrate resilience in the commercial real estate sector, broader geopolitical uncertainties remain a factor. The company will continue to adopt a disciplined approach to capital management and closely monitor regional developments.

Continued focus on stability and growth

Equitativa emphasized that strategic initiatives completed in 2024, including refinancing efforts, have positioned Emirates REIT for sustained growth. The improved liquidity and balance sheet strength are expected to support future distributions and portfolio expansion, even amid evolving market conditions.