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- ENBD REIT will look to acquire up to 4.4 million shares from the market in its share buyback programme, effective from Thursday 21st February 2019
- The buy-back aims to add value to shareholders given the current discount in the share price
- Integrated Securities LLC appointed as independent broker to execute the programme on behalf of ENBD REIT
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, has announced that it will introduce a share buy-back programme, as part of its strategy to add value to shareholders holding equity at the current discounted share price level. The initiative aims to positively impact the liquidity of ENBD REIT’s stock, in a market affected by limited trading volumes, while offering a level of protection to shareholders from disproportionate price movements.
ENBD REIT has allocated up to USD 3.5 million for the programme, which facilitates the acquisition of up to 4,401,340 shares at a price no higher than 10% of the previous day’s volume weighted average trading price (VWAP). The programme is effective from Thursday 21st February 2019 up to and including 30th September 2019 and the Board of Directors reserves the right to suspend or terminate the programme before the 30th September 2019. The buy-back programme will be kept on hold during ENBD REIT’s closed period, from 1st April 2019 until the announcement of its full year results. ENBD REIT will conduct the programme in accordance with the terms of the general authority granted to the Board by shareholders at the Annual General Meeting on 3rd June 2018, and relevant approvals obtained from the regulator.
Shares acquired during this programme will be cancelled at the end of each month. Integrated Securities LLC has been appointed as independent broker to execute the programme on behalf of the REIT, via the Order Book of Nasdaq Dubai. ENBD REIT’s Board of Directors will not participate in the share buy-back programme.
ENBD REIT’s management and directors see value in utilising excess cash currently held within the REIT to achieve higher projected dividend yields for investors in the future. The buy-back programme is limited to the extent that it will not impact ENBD REIT’s ability to pay dividends and acquire further assets, in line with its strategy to grow and diversify its real estate holdings.
Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said:
“The purpose of the buy-back programme is to realise value for all shareholders by repurchasing shares currently trading at a significant discount to current market valuations of the underlying assets.”
On 29th January 2019, ENBD REIT announced a NAV of USD 284 million, or USD 1.11 per share. The REIT’s portfolio maintained a stable blended occupancy of 88%, with gross yield on the portfolio currently at 8.3%. The total property portfolio value stands at USD 456 million (AED 1.7 billion), with diverse holdings covering 11 properties across the office, residential and alternative real estate sectors.
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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”. 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. under-development primary school, scheduled to open in September 2018 and 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.
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For more information:
ENBD REIT (Investor Relations)
Julia Ward-Osseiran
JuliaO@emiratesnbd.com
+971 (0) 4 509 3016
Company Secretary
Jean Kenny Labutte
JeanK@apexfunddubai.ae
Apex Fund Services (Dubai) Ltd.
+971 (0) 4 428 9221
+971 (0) 55 662 8078
Instinctif Partners (Public Relations)
George Allen
George.Allen@instinctif.com
+971 (0) 56 609 6749
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