24 January 2018

ENBD REIT Announces Quarterly NAV Increase of 1.71%

  • Total property portfolio value stands at USD 460 million (AED 1.7 billion) following series of strategic acquisitions
  • Occupancy climbs to 87% across the portfolio, representing growth of 8% over the quarter
  • Re-alignment of dividend distribution calendar to coincide with half- and full-year results

Dubai, United Arab Emirates, 24th January 2018: ENBD REIT (CEIC) Limited (“ENBD REIT”), the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced its Net Asset Value (“NAV”) for 31st December 2017. ENBD REIT’s NAV now stands at USD 300 million (AED 1.1 billion), or USD 1.18 per share, which represents a 1.71% increase over the quarter. The total property portfolio value stands at USD 460 million or AED 1.7 billion, with diverse holdings covering 11 properties across the office, residential and alternative real estate sectors.

ENBD REIT also announced the realignment of its dividend calendar, to coincide with its financial year-end on 31st March. The next dividend declaration is scheduled for year-end 31st March 2018 and will be distributed in June 2018, following shareholder approval at the AGM. Thereafter, it is ENBD REIT’s intention to continue to distribute dividends to shareholders on a semi-annual basis, following full-year and half-yearly financial results (31st March and 30th September).

Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said:

“We are pleased to announce a further improvement to our NAV, following the acquisition of the Souq Extra retail centre in Dubai Silicon Oasis, which we completed shortly before the end of 2017. The year was a very busy one, with our listing on Nasdaq Dubai in March followed by a string of four acquisitions that saw ENBD REIT grow and diversify its portfolio. We now hold high quality, income-generating properties across office, residential and alternative asset classes. In 2017, we successfully deployed the USD 105 million raised at listing, tapped our Islamic debt facility, and have now achieved a Loan-to-Value ratio of 36%. I am proud of the team’s hard work and we look forward to a successful year ahead.”

ENBD REIT Announces Portfolio Occupancy Growth

Portfolio occupancy growth in the last quarter of 2017 saw an increase of 8%, with total portfolio occupancy reaching 87%. Top performing assets included Binghatti Terraces, where occupancy now stands at 95% (up from 70% in the previous quarter) and Remraam, where occupancy continued to climb to 60% (up from 38% in the previous quarter). The alternative portion of the portfolio is currently 100% occupied in line with ENBD REIT’s acquisition strategy to acquire fully occupied income producing assets. Occupancies within the office and residential portfolios currently stand at 84% and 85% respectively.

In 2018, the focus of ENBD REIT is to enhance shareholder returns, through further acquisitions, reaching an optimal Loan-to-Value (LTV) ratio of 45%, while continuing to improve and maintain high occupancy rates across the portfolio. The REIT manager will focus on mitigating risk in the portfolio by securing income from longer term leases and diversifying holdings across real estate sectors, while maintaining an efficient cost structure. ENBD REIT will continue to strive to be at the forefront of international best practice standards of corporate governance and plans to grow its equity in the future, with a target of becoming a USD 1 billion REIT in the coming years.

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