Emirates REIT asking holders of its $400 mln sukuk for a deferral of coupon payments

Emirates REIT, a Shariah-compliant real estate investment trust, has proposed amendments to holders of its $400 million sukuk.

The Dubai-listed firm proposed two key amendments in a disclosure on Wednesday (May 19) as it tries to improve its balance sheet that has been hit by the COVID-19 pandemic.

Emirates REIT wants to exchange the unsecured notes at par with a secured instrument, which will mature in December 2024 compared to the sukuk that was scheduled for December 2022.

Reuters reported on Wednesday that a group of creditors is planning to oppose the terms of the offer.

The sukuk holders will decide at a meeting on June 9.

Emirates REIT did not have a good 2020. Rental income was down by 9.7% to $58.2 million and net property income fell by 11.3% to $52 million.

It made a loss of $242.9 million compared to being $25.6 million in the red for full-year 2019.  

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