ENBD REIT, the real estate investment trust managed by Emirates NBD Asset Management, has seen higher leasing activity across its portfolio, as real estate market conditions continue to improve.

Occupancy levels for the quarter ended June 30, 2022 reached 83%, up from 75% a year ago and 80% at the end of 2021, according to a statement on Monday.

Some of the residential assets posted 100% occupancy, while the office portfolio recorded 75%. Gross rental income also improved slightly to $7.5 million.

However, when taking into account the $5 million final dividend payment in July, the trust's net asset value fell to $165.6 million from $166.9 million in the previous quarter.

Without the dividend payment, NAV increased by 2.3, the first quarterly increase in portfolio valuation since the second quarter of 2018.

The first valuation increase in four years demonstrates the "improvements in overall occupancy, as well as improved market conditions", according to Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management.

"Looking ahead, we believe that the real estate market has now showed consistent signs of having turned the corner while the impact of the increasing interest rate environment has been partially mitigated by the successful refinancing of our entire debt facility terms in late 2021," Taylor added.

(Writing by Cleofe Maceda; editing by Daniel Luiz)