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- Net Asset Value up to USD 191m (USD 0.76 per share)
- Stable portfolio occupancy at 92%
- Active asset improvement programme ongoing
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 Net Asset Value (“NAV”) as at 31 December 2023, reflecting a sustained growth to USD 191 million or USD 0.76 per share, up from USD 189 million the previous quarter and USD 173 million year-on-year (“Y-o-Y”).
The total value of the property portfolio rose to USD 384 million, up 1.38% from the last quarter. The growth was supported by stable occupancy rates of 92%, up from 84% a year ago and marking the highest level since 2018. The active approach to asset management continued during the quarter with investments across DHCC 25 and 49, Bin Ghatti Terraces and Arabian Oryx House. These actions, coupled with the sustained positive momentum in leasing activities had a further positive impact on asset valuations.
Samir Kazi, Head of Real Estate at Emirates NBD Asset Management, said:
“The positive momentum which marked the first half of the financial year continued during this quarter as our teams maximize opportunities across the asset base with improved occupancy levels driving income and valuations. Despite the higher financing and operating costs, our conservative approach will ensure that we maintain a solid financial position and position ENBD REIT to unlock further value for our stakeholders."
ENBD REIT's gross rental income increased by 10.6% compared to last year. The portfolio's Weighted Average Unexpired Lease Term (WAULT) is at 3.7 years with the Loan-to-Value (LTV) ratio steady at 51%.
Melanie Fernandes, Senior Portfolio Manager at Emirates NBD Asset Management, said:
"The continued commitment to invest in making our assets attractive to a wide range of tenants is supporting good leasing activity levels. The occupancy across our portfolio remained at 92%, which is the highest level since 2018 with further improvements expected as the market strength continues.”
Operating expenses increased by 16.8% compared to last year as inflationary pressures and increased direct expenses linked to the higher occupancy rate materialised. The high interest rate environment also resulted in the Finance costs rising by 51.9%. As previously mentioned, 50% of the debt was successfully hedged in the first quarter of the financial year to provide a lower cost in the years ahead and improved predictability during the current interest rate cycle.
For more information:
NBD REIT (Investor Relations)
Mona Zahooruddin ENBDREITIR@EmiratesNBD.com
+971 (0) 4 509 3034
Company Secretary
Akeela Bharuchi cosecme@equiomgroup.com
Equiom Corporate Services
+971 (0) 4 446 3900
Instinctif Partners (Public Relations)
Arief Zulkifli Arief.Zulkifli@instinctif.com
+971 (0) 58 906 3431
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”), 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. Oracle is the largest tenant occupying 85% of the office space.
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.
Remraam Residential (Dubailand)
Two residential towers offering 105 units in mainly 1 & 2-bedroom apartments
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.
