Equitativa (Dubai), the fund manager that runs the Nasdaq Dubai-listed Emirates Reit, said it will continue to focus on operational improvements and reducing costs as it filed a 4 per cent increase in the total income generated from its property portfolio.
Property income rose 4 per cent year-on-year to $54.1 million (Dh198.5m) in the nine months to September 30, but a fall in the value of its portfolio meant net profit dropped 81 per cent to $5.9m. The company reported a $1.3m revaluation loss, compared to a $19.5m gain in the same period last year. It said the lower valuation was “influenced by market conditions”.
“However, the profit as at Q3 2019 does mark an improvement compared to H1 this year, when Emirates REIT reported a drop in profits to $1.1m driven by revaluation losses. The current lower revaluation losses are an indication of potential market recovery,” Equitativa said.
At the end of the quarter, the value of the company’s portfolio stood at $1 billion, and its net asset per share stood at $1.67, although its shares continue to trade at a substantial discount. Its shares closed slightly higher at $0.66 per share on Wednesday.
The company pointed to increases in occupancy at Index Tower, where it owns a number of floors, and the opening of Index mall on lower floors as signs of progress, although its overall occupancy rate fell slightly to 74 per cent, from 75 per cent at the half-year period.
Both of the listed real estate investment trusts in the UAE have been trading below market value for some time as a result of negative sentiment surrounding the property market, but managers have taken different approaches to rectify this. ENBD Reit's manager, Emirates NBD Asset Management, cancelled a tranche of shares late last year and used some of the proceeds to initiate share buybacks.
Emirates Reit, on the other hand, has borrowed more heavily with a view to making acquisitions in a market where pricing remains soft. In August, Equitativa chief executive Sylvain Vieujot told The National that the Reit intends to spend Dh200m on property by early next year.
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Ahmed Raza
UAE cricket captain
Age: 31
Born: Sharjah
Role: Left-arm spinner
One-day internationals: 31 matches, 35 wickets, average 31.4, economy rate 3.95
T20 internationals: 41 matches, 29 wickets, average 30.3, economy rate 6.28
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
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Torque: 780Nm
Transmission: 8-speed automatic
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MATCH INFO
Juventus 1 (Dybala 45')
Lazio 3 (Alberto 16', Lulic 73', Cataldi 90 4')
Red card: Rodrigo Bentancur (Juventus)
Without Remorse
Directed by: Stefano Sollima
Starring: Michael B Jordan
4/5
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
LILO & STITCH
Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders
Director: Dean Fleischer Camp
Rating: 4.5/5