ENBD REIT Announces Share Buy-Back Programme
- ENBD REIT will look to acquire up to 4.4 million shares from the market in its share buyback programme, effective from Thursday 21st February 2019
- The buy-back aims to add value to shareholders given the current discount in the share price
- Integrated Securities LLC appointed as independent broker to execute the programme on behalf of ENBD REIT
Dubai, United Arab Emirates, 19th February 2019: ENBD REIT (CEIC) PLC ("ENBD REIT"), the Shari'a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced that it will introduce a share buy-back programme, as part of its strategy to add value to shareholders holding equity at the current discounted share price level. The initiative aims to positively impact the liquidity of ENBD REIT's stock, in a market affected by limited trading volumes, while offering a level of protection to shareholders from disproportionate price movements.
ENBD REIT has allocated up to USD 3.5 million for the programme, which facilitates the acquisition of up to 4,401,340 shares at a price no higher than 10% of the previous day’s volume weighted average trading price (VWAP). The programme is effective from Thursday 21st February 2019 up to and including 30th September 2019 and the Board of Directors reserves the right to suspend or terminate the programme before the 30th September 2019. The buy-back programme will be kept on hold during ENBD REIT’s closed period, from 1st April 2019 until the announcement of its full year results. ENBD REIT will conduct the programme in accordance with the terms of the general authority granted to the Board by shareholders at the Annual General Meeting on 3rd June 2018, and relevant approvals obtained from the regulator.
Shares acquired during this programme will be cancelled at the end of each month. Integrated Securities LLC has been appointed as independent broker to execute the programme on behalf of the REIT, via the Order Book of Nasdaq Dubai. ENBD REIT's Board of Directors will not participate in the share buy-back programme.
ENBD REIT's management and directors see value in utilising excess cash currently held within the REIT to achieve higher projected dividend yields for investors in the future. The buy-back programme is limited to the extent that it will not impact ENBD REIT's ability to pay dividends and acquire further assets, in line with its strategy to grow and diversify its real estate holdings.
Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said:
"The purpose of the buy-back programme is to realise value for all shareholders by repurchasing shares currently trading at a significant discount to current market valuations of the underlying assets."
On 29th January 2019, ENBD REIT announced a NAV of USD 284 million, or USD 1.11 per share. The REIT's portfolio maintained a stable blended occupancy of 88%, with gross yield on the portfolio currently at 8.3%. The total property portfolio value stands at USD 456 million (AED 1.7 billion), with diverse holdings covering 11 properties across the office, residential and alternative real estate sectors.