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Before listing on Nasdaq Dubai in 2017, ENBD REIT's predecessor, Emirates Real Estate Fund, delivered cumulative returns and consistently distributed dividends throughout market fluctuations, as shown below.
*Source: Emirates NBD AM, A Share Class, bid to bid, USD terms with net income reinvested including capital distribution
|12 month return||4.80%|
|24 month return||13.06%|
|36 month return||29.65%|
|48 month return||44.59%|
|60 month return||57.46%|
*Source: Emirates NBD AM, Emirates Real Estate Fund A Share Class, bid to bid, USD terms with net income reinvested including capital distribution, as at 30th September 2016.
1 Further capital distribution paid during this quarter
Investors in UAE stock markets need to set up a National Investor Number, often referred to as a NIN, which is a unique number enabling investors to trade any securities that are listed on NASDAQ Dubai or other UAE exchanges in their own name. If you want to apply for a NIN, you can visit the NASDAQ Dubai website or contact your broker to apply.
REITs are primarily aimed at investments in income-generating properties, providing investors with the opportunity to access the real estate asset class. REITs typically provide their shareholders exposure to a variety of real estate assets through a single investment instrument.
There are four key benefits to investing in a REIT. First, there is the flexibility of adjusting the amount you invest to suit your financial resources. Second, you can access a portfolio of properties with diverse income streams, rather than relying on a single property/asset. Third, REIT investors tend to have better access to liquidity, because trading shares in a REIT on the public markets is generally easier, cheaper and faster than selling a physical real estate asset. Finally, investing in a REIT is simple; owning shares in a REIT is straight-forward and pays a dividend.
ENBD REIT shares are listed in USD. Please contact your broker for further details regarding foreign currencies.
ENBD REIT aims to invest in Shari'a compliant and income generating real estate with a primary focus on the UAE. The principal investment objective of the REIT is to provide investors with a regular source of income (by way of annual dividends of at least 80% of its net audited annual income) and capital appreciation.
As at 31st December 2019, and based on the market valuations of the properties as carried out by third party independent valuers, 64% of ENBD REIT's portfolio was comprised of offices while 17% of the portfolio was comprised of residential property and 19% of alternative assets
The existing office and residential real estate portfolio is valued at USD 429m as at 31st December 2019.
Yes. ENBD REIT is targeting an asset allocation of: 64% office units; 17% residential units; and 19% alternative real estate sectors (including industrial, education, healthcare and hospitality). Exact sector allocation may not always be maintained given the value and availability of real estate assets, however the allocation above provides guidance on ENBD REIT’s target asset allocation given current market conditions. The asset allocation is also expected to change from time to time, depending on market and other conditions, at the Fund Manager’s discretion.
ENBD REIT is a closed-ended investment company with limited liability registered in the Dubai International Financial Centre (DIFC) with registration number 2209 and managed by Emirates NBD Asset Management Limited, which is also domiciled in the DIFC and is regulated by the Dubai Financial Services Authority (DFSA).
The minimum number of shares that an investor may hold in ENBD REIT is one share. While there is no maximum number of shares that an investor may hold, once an investor holds over 5% of ENBD REIT’s share capital, certain legal obligations will be applicable.
There are no foreign ownership restrictions for holding equity in ENBD REIT.
ENBD REIT intends to pay dividends on a semi-annual basis, as at 31st March and 30th September
ENBD REIT’s financial calendar ends on 31st March, so the audited annual accounts will be published after that date.
ENBD REIT has appointed CBRE and Cavendish Maxwell as independent valuers for its portfolio. The regulatory requirement is to value semi-annually, but management are of the opinion that quarterly valuations are preferable, therefore the Net Asset Value of the portfolio, including the NAV per share, will be published every quarter end, in June, September, December and March. As the portfolio grows, the REIT may appoint additional valuation companies according to a rotation policy, in line with global best practice.
Emirates NBD Asset Management Limited has been appointed as the Fund Manager of ENBD REIT. Emirates NBD Asset Management is established in the Dubai International Financial Centre and regulated by the Dubai Financial Services Authority as a Category II Firm and is the wholly owned asset management business of Emirates NBD Bank, one of the largest banks by assets in the MENA region. Emirates NBD Asset Management provides a full range of investment solutions, from in-house managed public funds to tailor-made discretionary solutions. It manages funds across asset classes, including MENA equity and global fixed income funds, global risk profiled funds, UAE real estate, and a complete range of Shari'a compliant instruments, structured to cater for diverse risk appetites.
Each of the Emirates NBD Asset Management managed funds are domiciled in either Jersey (regulated by the Jersey Financial Services Commission), Luxembourg (regulated by the Luxembourg Commission de Surveillance du Secteur Financier) or the DIFC (regulated by the DFSA). For further details, please click here
In addition to managing ENBD REIT, the Fund Manager manages 21 other funds including funds in Jersey (as regulated by the Jersey Financial Services Commission) and Luxembourg (as regulated by the Commission de Surveillance du Secteur Financier). The Jersey-domiciled funds consist of two umbrella funds each divided into six sub-funds.
The Fund Manager manages these additional funds in its capacity as delegate investment manager and its services cover a range of asset classes including MENA Equities, fixed income, real estate and global funds, structured on either a Shari’a compliant or a conventional basis. The Fund Manager also provides asset management and advisory services across different asset classes and geographies.
All transactions are approved by ENBD REIT’s Investment Committee, the members of which are 100% independent of Emirates NBD. Therefore, any transactions concluded between Emirates NBD and ENBD REIT will be considered entirely on the merits of the particular transaction and at arm’s length. Furthermore, as part of the due diligence process for transactions, an independent third party valuation is required to confirm the price is at market value. DFSA regulations require shareholders’ approval if the related party transaction is more than 5% of the REIT.
Additionally, any transaction agreed between ENBD REIT and Emirates NBD would be deemed a related party transaction under the DFSA regulations, therefore would also require approval from the Oversight Committee which comprises three independent members.
The Fund Manager's current AUM as at 31st December 2019 is approximately USD 4.5bn.