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Dubai-based Emirates REIT is considering issuing a new sukuk as a refinancing option after it said rising costs on its existing Islamic bond and increasing benchmark rates had negatively impacted profitability.
The real estate investment trust reported a loss before fair valuation of $1.5 million for H1 2024, narrowing from a loss of $3.6 million last year.
Value of investment properties increased to $991 million from $838.1 million year-on-year, while net asset value reached $563 from $419 million YoY.
Auditors Ernst & Young said the group’s liabilities exceed assets by $336.5 million, indicating material uncertainty ,which may cast significant doubt on its ability to continue as a going concern.
Notes on H1 results published to Nasdaq Dubai said the REIT’s manager Equitativa is considering options for refinancing including the issuance of a new sukuk, and that asset divestment had started.
The entity announced in July that it had agreed to sell Trident Grand Mall in Dubai Marina, for $20 million.
This followed the decision to exercise its right to extend its sukuk maturity date by one year, announced in June.
(Writing by Imogen Lillywhite; editing by Seban Scaria)