Dubai, United Arab Emirates, 27 April 2017: ENBD REIT (CEIC) Limited ("ENBD REIT"), a Shari'a compliant real estate investment trust managed by Emirates NBD Asset Management Limited (the "Fund Manager"), has released the first Net Asset Value post listing on 23rd March 2017.
The first NAV since listing, which has remained stable due to strong rental income being off-set by the listing costs, now stands at USD 297 million (AED 1.09 billion) and USD 1.17 per share. The Property Portfolio Value now stands at USD 315 million (AED 1.16 billion).
Tim Rose, Head of Real Estate, Emirates NBD Asset Management, commented:
"Occupancy rates in the portfolio currently stand at 85%, having shown an overall increase of 8% over the last two quarters. Specific progress has been made in Burj Daman, the REITs second largest asset by value, where occupancy has risen by 14% since January 2017 to 56%. All key indicators point towards a strong performance in 2017."
The REIT invests in predominantly income generating real estate, with the objective of providing investors with a regular source of income, by way of annual dividends of at least 80% of net audited annual income, and potential capital appreciation.
The first dividend post listing is expected to be paid as at June 30th 2017. The REIT aims to regularly distribute a semi-annual dividend with a target of achieving a return of 7% per annum or more.
Anthony Taylor, Fund Manager, Real Estate, Emirates NBD Asset Management commented:
"ENBD REITs progress post IPO on Nasdaq Dubai has been very encouraging. Our team has been hard at work, aggressively seeking new acquisitions, to invest the capital raised from the IPO, for which we are focusing on occupied, income generating assets with long term leases. We are pleased with the increase in occupancy rates across the portfolio and look forward to achieving greater success in the months and years to come."
ENBD REIT's offer was well over-subscribed with commitments from a mix of investors representing both financial institutions and family offices across the GCC. The transaction was successful in balancing the holdings of existing and incoming investors. The final offer price was US$ 1.11 per share.
