Emirates REIT’s 1H earnings fall 71%, but rental growth boosts underlying performance

Emirates REIT’s headline earnings fell 71% y-o-y to USD 54.3 mn in 1H 2026, as unrealized valuation gains dropped 79% to USD 37.2 mn off a high base, according to its interim report (pdf) and 1H factsheet (pdf). Earnings before fair-value gains — a better read on recurring operations — more than doubled to USD 17.1 mn.

Strip out those valuation swings and the picture looks different: Property income rose 9.6% on a like-for-like basis to USD 42.3 mn, driven by higher rents and 96% occupancy, while net property income climbed 20% to USD 40.4 mn. Operating costs fell 16%, fund expenses dropped 21% to USD 11.9 mn, and operating income jumped 51% to USD 28.4 mn.

Dubai’s tight office market helped: Rental rates rose 15% at European Business Center, 11% at Index Tower, and 6% at Loft Offices. Emirates REIT also sold Indigo 7 for USD 10.1 mn in June, above its USD 7.4 mn March valuation, while net asset value reached a record USD 949.5 mn, up 7.4% y-o-y.

The balance sheet is still getting lighter: Finance-to-asset value fell to 19% from 20%, while net finance costs edged down 2.1% to USD 11.3 mn following last year’s refinancing.

Dividends: The REIT is planning a USD 7 mn interim payout in September — its first distribution in 2026 — as it shifts toward quarterly dividends.