• Portfolio occupancy improved to 88%, the highest since 2018
  • Total property portfolio value up 3.9% to USD 370m
  • Net Asset Value up 7.5% to USD 179m or USD 0.72 per share
  • Proposed final dividend of USD 4.5m or USD 0.018 per share, in line with net rental income generated
  • WELL Health-Safety Rating obtained for Al Thuraya, in line with sustainability agenda
  • 50% of debt hedged post year-end to lower costs in current interest rate cycle

Dubai, United Arab Emirates: ENBD REIT (CEIC) PLC, the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced its financial results for the year ended 31st March 2023, with the Net Asset Value (“NAV”) rising 7.5% to USD 179 million or USD 0.72 per share. This performance comes as the company successfully captured the benefits of the market recovery through the capital investments made across the portfolio.

ENBD REIT’s property portfolio value rose 3.9% to USD 370 million year-on-year supported by occupancy climbing to 88% from 80% the year before, marking its highest level since 2018 on the back of strong leasing activity and improved asset quality. The comprehensive investments made to improve the tenant offering in a number of buildings across the portfolio, coupled with active asset management strategies, resulted in gross income rising 14.7% to USD 31.3 million from USD 27.3 million the year before. Net income (including non-cash movements in valuations) improved considerably in the year to a positive USD 21.9m compared with a net loss of USD 4.4m in the previous financial year. The net rental income or Funds From Operations (“FFO”), which excludes non-cash movement in valuations and directs dividend payments to shareholders, remained positive and consistent year-on-year, albeit slightly down at USD 9.2m from USD 9.5m the previous year due to the rising finance costs offsetting the improved revenue. 

During the year, significant letting milestones were achieved across flagship Office assets including reaching a 91% occupancy level at the Burj Daman located in DIFC, the highest since the asset was acquired in 2015. At Al Thuraya Tower 1 in Dubai Media City, occupancy improved steadily throughout the year to over 64% in May 2023, just a year after completion of the largest refurbishment project for ENBD REIT. The Residential and Alternative assets remained close to fully let during the year in line with positive market sentiment in these sectors across Dubai.

Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said:

“The capital investments made to our portfolio in the prior years to drive asset quality have enabled us to deliver an improved operational performance by successfully capturing the benefits of the market recovery with occupancy levels increasing to 88% and the portfolio value rising 3.9% to USD 370 million.

Looking ahead, we expect the market to remain buoyant although the impact of higher financing costs will affect our net rental income as interest rates are expected to remain high over the next 12 months.”

Despite the lower margins secured through the refinance of the entire debt in November 2021, the rapid increase of interest rates impacted the cost of debt materially with finance costs rising by USD 3.4 million during the year. Post year-end, 50% of the debt was successfully hedged to provide a lower cost in the years ahead and improved predictability during the current interest rate cycle. Operating expenses for the year were 14% higher as direct expenses increased in line with the improved occupancies whilst fund expenses rose slightly on the back of improved valuations and inflationary pressures on service providers.

The Weighted Average Unexpired Lease Term (“WAULT”) decreased to 3.9 years for the overall portfolio due to natural progression to expiry in the year. The Loan-to-Value (“LTV”) ratio reduced to 53% in line with the valuation improvements. All covenants were maintained well below the regulatory LTV threshold of 65% during the year, as per the amendments to the DFSA CIR Rulebook 13.4.5 in 2020.

The commitment to implement sustainable strategies across the portfolio continued following the LEED Gold certification achieved by The Edge Building in March 2022. Al Thuraya was awarded the international WELL Health-Safety Rating making it one of the first buildings in the UAE to register for the certification, putting ENBD REIT at the forefront of building upgrades and renovations across the country. A number of other assets have been identified for certifications that will increase their attractiveness and enable other benefits such as the potential for lower financing costs overtime.

Muhammad Asif Siddique, Senior Finance Manager at Emirates NBD Asset Management and Chief Financial Officer for ENBD REIT, said:

“We welcome the positive performance generated by the portfolio during this financial year, with higher occupancies driving improved revenue and valuation gains.

Whilst finance costs had a negative impact on our financial performance, operating expenses and fund expenses were maintained in line with the positive movements in gross revenue due to portfolio improvements and higher occupancies. Since year-end, we have taken proactive steps to manage our cost of debt and successfully hedged 50% of our exposure to benefit from savings due to lower forward pricing and provide more certainty on our finance costs in the current interest rate cycle.

While the real estate market remains buoyant, potential disposal of assets are being carefully considered to lower the LTV to a more comfortable range of 40-45% which should in turn improve net rental returns and dividend payments.”

ENBD REIT’s Board of Directors has proposed a final dividend of USD 4.5million or USD 0.018 per share for the 6-month period ending 31st March 2023. This brings the total dividend payable to shareholders for the year to USD 9.0 million, with a 5.3% decrease compared to the previous year. 

Subject to shareholder approval of the dividend at the Annual General Meeting on 22 June 2023, the shares will trade ex-dividend on 6 July 2023, with the record date set as 7 July 2023 and the payment date on 27 July 2023.

ENBD REIT’s financial results were prepared in accordance with International Financial Reporting Standards (IFRS) and audited by Deloitte.

For more information:
ENBD REIT (Investor Relations)
Mona Zahooruddin                                                                          ENBDREITIR@EmiratesNBD.com                                               

Company Secretary

Akeela Bharuchi                                                                                akeelabharuchi@equiomgroup.com

Equiom Corporate Services                                                          
Instinctif Partners (Public Relations)
Arief Zulkifli                                                                                        Arief.Zulkifli@instinctif.com


ENBD REIT (CEIC) PLC (“ENBD REIT”) is a Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited (the “Fund Manager”), listed on Nasdaq Dubai under ticker ENBDREIT. ENBD REIT is a closed-ended investment company that was incorporated by the Fund Manager to invest in a diversified Portfolio of Shari’a-compliant real estate assets in the UAE. ENBD REIT has an unlimited duration and was established in the DIFC by the Fund Manager on 18 July 2016 under the Companies Law with the name “Emirates Real Estate Fund Limited” and with registration number 2209. The Fund subsequently changed its name to “ENBD REIT (CEIC) Limited” and later ENBD REIT (CEIC) PLC in line with the new DIFC Companies Law. ENBD REIT is categorised under DFSA law and regulations as a Public Fund, a Domestic Fund, an Islamic Fund, a Property Fund and a Real Estate Investment Trust (REIT). ENBD REIT has been established with the main investment objective of generating income returns and capital appreciation from real estate assets. ENBD REIT plans to achieve its objectives through the following strategies: (i) prudent acquisitions with a focus on achieving diversification; and (ii) active asset management and enhancement. For more information, visit: www.enbdreit.com  



Al Thuraya 1 (Dubai Media City)

A G+29-story high rise commercial tower, located at a prime location in Dubai Media City with views over Barsha Heights and Palm Jumeriah.

Burj Daman (DIFC)

Two and a half floors (the fund fully owns the 10th and 14th floors and half of the 15th floor) in the commercial portion of the tower in the DIFC.

DHCC 49 (Dubai Healthcare City)

G+5-story commercial complex located in the Dubai Healthcare City free zone.

DHCC 25 (Dubai Healthcare City)

G+6-story commercial tower located in the Dubai Healthcare City free zone

The Edge Building (Dubai Internet City)

A G+6-story fully leased, prime grade A office building recently constructed and located in the Dubai Internet City free zone. Oracle is the largest tenant occupying 85% of the office space.


Arabian Oryx House (Barsha Heights)

A residential tower with 128 units in the free zone Barsha Heights, Dubai. Mainly comprises units of one, two and four-bed apartments.

Binghatti Terraces (Dubai Silicon Oasis)

A residential tower with 201 residential and 5 retail units in Dubai Silicon Oasis, constructed by developers with an established track record.

Remraam Residential (Dubailand)

Two residential towers offering 105 units in mainly 1 & 2-bedroom apartments


Uninest Dubailand (Dubailand)

A 424-bed student accommodation property located close to Dubai Academic City, serving students attending university across the city. 100% leased to global student accommodation provider, GSA.

South View School (Remraam)

A 132,000 sq. ft. British curriculum primary and secondary school operated by Interstar Education.

Souq Extra Retail Centre Phase 1 (Dubai Silicon Oasis)

Community centre in Dubai Silicon Oasis with over 36,000 ft² of gross leasable area, comprising 25 retail units fully let to blue-chip tenants.