Dubai, United Arab Emirates, 13th August 2018: ENBD REIT (CEIC) Limited ("ENBD REIT"), the Shari'a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced that management acknowledges the recent fall in the share price of ENBD REIT and is actively pursuing options to mitigate downward pressure on the REIT’s share price. Recent pressure on the share price has largely resulted from a soft local real estate and equity market, coupled with low liquidity.
The REIT's management is working on a strategy to add value to shareholders, which will soon be formally announced to the market, subject to Board and DFSA approval. The initiative aims to have a positive impact in a market affected by limited trading volumes, while offering protection from disproportionate price movements. ENBD REIT’s management and directors believe the stock is undervalued, with considerable upside potential.
Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said:
"With Net Asset Value holding relatively well in current market conditions, the discount is attractive and is expected to narrow as local real estate and equity markets improve in the future. At the current discount to NAV, we regard our lower than optimum share price as a buying opportunity, rather than a time to sell. The initiative we intend to introduce should make that opportunity more attractive."
Liquidity in Dubai's equity markets remains limited, and this has encouraged ENBD REIT to make active efforts to improve trading volumes. Such efforts have included the appointment of SHUAA Capital as liquidity provider, as well as programmes to improve awareness of the REIT, its portfolio and its sector, along with intensive marketing campaigns.
