Emirates REIT (EREIT) has announced that it has held its general meeting yesterday, 17 January, in which the proposed USD0.04/share interim dividend was approved. The payment will be made on or before 31 January for shareholders registered as of the end of the trading session of 11 January. Management has reiterated its plan to pay a final dividend for 2015 profits in June 2016.   We had highlighted our concern over the sustainability of dividends, in light of EREIT’s tightening liquidity position and short-term capex commitments (towards the development of Jabel Ali School and the additional office space at the Index Tower). That said, management has remained committed to its plan to (at least) maintain dividends in absolute terms, and resorted to bank borrowing to meet those cash obligations, raising AED400 million in loan facility, its largest single credit facility to date announced last month. We note that EREIT’s loan-to-gross-asset value (LTV) has risen to 35.75%, up from 30.56% as of the end of October 2015, as a result of the new loan, but is still below the REIT’s regulatory maximum LTV of 50%. We expect USD0.08/share in total cash distribution for 2015, implying a dividend yield of 6.8%, on yesterday’s closing price.