• FFO increased by 42% Y-o-Y to USD 5.1 million, supporting a recommendation to shareholders to increase interim dividends to rise to USD 5 million, from USD 3.5 million in the previous year.
  • Net Asset Value up 1.3% Q-o-Q to USD 202 million or USD 0.81 per share
  • Occupancy reached a record 94%, showcasing robust leasing activity across the portfolio
  • Total property portfolio value stands at USD 379 million, maintaining strong performance
  • LTV down to 48% following utilization of proceeds from sale of the Remraam residential assets in July to reduce financing

Dubai, United Arab Emirates: 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 second quarter ended 30th September 2024. ENBD REIT's Net Asset Value (“NAV”) stood at USD 202 million or USD 0.81 per share, compared to USD 199 million for the previous quarter and USD 189 million the previous year, a respective 1.3% Quarter-on-Quarter (Q-o-Q) and 6.57% Year-on-Year (Y-o-Y) increase.

ENBD REIT is now six months into its turnaround journey, prioritizing improving Funds From Operations (FFO) to enhance dividend payments for greater shareholder value. The strategy has been delivering positive results, with a recommendation being made to shareholders for an interim dividend payment of USD 5 million, up from USD 3.5 million in the same period last year. This equates to a yield of 5.0% on NAV and 12.2% on share price as at 30 September 2024 (annualized), compared to the previous financial year’s yield of 3.9% on NAV and 8.6% on share price. This progress reflects ENBD REIT’s commitment to aligning dividends with improving FFO and addressing the disconnect between share price and NAV.

FFO increased by 42% Y-o-Y to USD 5.1 million from USD 3.6 million, supported by higher occupancies and rental rates across the portfolio, lower finance costs due to reduced credit margins, and debt repayment from the proceeds of the Remraam property sale. Operational efficiencies, including the consolidation of service providers, further bolstered performance.

The property portfolio value remained stable at USD 379 million following the sale of the Remraam residential assets, with portfolio valuations improving by 1.8% this quarter, up by USD 6.4 million. Overall occupancy surged to 94% Q-o-Q, marking the highest level in the REIT’s history. This milestone reflects exceptional leasing performance, particularly in flagship assets such as The Edge and Burj Daman, both of which achieved full, or near-full occupancy during the period. In addition to this, the occupancy for DHCC 49 has increased by 13% Q-o-Q to reach 93%.

Samir Kazi, Head of Real Estate at Emirates NBD Asset Management and CEO of ENBD REIT, commented: Six months into our turnaround strategy, we are proud to deliver tangible results and enhanced value to our shareholders, marked by a 42% year-on-year increase in FFO, which has supported our ability to increase dividend payments. This achievement, coupled with record-breaking occupancy levels, reflects the ongoing success of our turnaround journey and the strength of our portfolio. We remain focused on improving FFO and increasing dividend payments and are confident in driving even greater value for our shareholders in the quarters ahead.”

Operating expenses are up 8.8% compared to the same quarter last year largely due to an increase in repairs and maintenance. Fund expenses decreased by 32.8% from the last quarter mainly on account of a decrease in provisions. Finance costs declined by 2.7% from the previous quarter.

-Ends-

For more information:

ENBD REIT (Investor Relations)

Mona Zahooruddin                                                                  ENBDREITIR@EmiratesNBD.com                                                        

Company Secretary

Kathryn Miller                                                                         cosecme@equiomgroup.com

Equiom Corporate Services 

Instinctif Partners (Public Relations)

Arief Zulkifli                                                                               Arief.Zulkifli@instinctif.com

ABOUT ENBD REIT

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” - Regulated by the DFSA), 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  

PORTFOLIO

Office:

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.

Residential:

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.

Alternative:

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.

HIGHLIGHTS*

Property portfolio value

USD 379 million

NAV

USD 202 million* (USD 0.81 per share)

LTV (on GAV)

48%

Occupancy

94%

WAULT (years)

3.68

No. of properties

10

Sectors

Office                    69%

 

Residential           14%

 

Alternative           17%

*All figures are as at 30th September 2024