Dubai, United Arab Emirates, 12 September 2024: ENBD REIT (CEIC) PLC (“ENBD REIT”), the Shari'a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, announces its financial results for the first quarter ended 30th June 2024. ENBD REIT's Net Asset Value (“NAV”) stood at USD 199 million or USD 0.80 per share, compared to USD 194.7 million for the previous quarter, reflecting the positive portfolio performance with gross income rising 13.7% Year-on-Year (“YoY”) to USD 9.4 million.
The total value of ENBD REIT’s property portfolio increased by 0.8% to USD 387 million Quarter-on- Quarter (“QoQ”), benefiting from the proactive asset management, portfolio rebalancing, and driving operational efficiency. Overall occupancy was slightly lower at 87% mainly due to a temporary vacancy at The Edge with the space already relet on a longer lease period at above market rates. The portfolio’s Weighted Average Unexpired Lease Term or WAULT stood at 3.66 years.
Samir Kazi, Head of Real Estate at Emirates NBD Asset Management and CEO of ENBD REIT, commented: “We are pleased with the performance of the portfolio with good progress being made on the turnaround journey. Our focus remains on driving income and occupancy levels while managing our costs and strengthening our financial position to drive sustainable long-term growth. I am confident in our ability to deliver further improvements over the coming quarters.”
Operating expenses are up 15% same quarter last year due to the direct expenses under utilities, reinstatement (reimbursed from tenants) and community charges. Fund expenses also rose mainly on account of increase in provision which is expected to be released shortly. Finance costs were up 3.3% to USD 3.7 million QoQ as interest rates remain high during the period. As a result, Funds From Operations (“FFO”) was down by 40% QoQ to USD 1.35 million, mainly due to higher provision as explained above.
Post-period end, in line with the turnaround strategy aimed at portfolio optimization and dividend growth, ENBD REIT successfully completed the divestment of the Remraam residential assets. Proceeds from the sale were deployed to reduce debt, with the LTV ratio dropping to 49.4%.
As part of the turnaround journey, ENBD REIT continues to explore opportunities for strategic investments and portfolio rebalancing. Despite challenges posed by a high interest rate environment and pricing expectations, ENBD REIT maintains its commitment to delivering value to its investors through proactive asset management and prudent financial practices, driving long-term growth and sustainability.
