Emirates REIT reports 81.1% net profit drop year-on-year for Q3 2019

The Dubai property market has experienced a period of contraction. (File photo: Reuters)

Emirates REIT reported an 81.1 percent drop in net profit for Q3 2019 year-on-year due to revaluation losses on property as a result of market conditions, the fund manager said.

Emirates REIT is the world’s largest Sharia-compliant real estate investment trust (REIT) and is listed on Nasdaq Dubai.

The trust reported $5.9 million in net profit for Q3 2019, a significant drop from its Q3 2018 $31 million result.

This does represent an uptick from Emirates REIT’s H1 2019 net profit of $1.1 million, however.

The manager of Emirates REIT, Equitativa (Dubai), said that it has focused on improving operations, reducing costs, and exploring new revenue opportunities. The company added that the increase in net profit over H1 2019 due to lower revaluation losses is, “an indication of potential market recovery.”

Emirates REIT also reported a total property income increase of 3.7 percent year-on-year, to $54.1 million, and a decrease in property operating expenses of 7.6 percent, to 10.7 million.

Last Update: 11:05 KSA 14:05 - GMT 11:05