- The buy-back programme has achieved its aim of realising value for current shareholders
- SHUAA Securities LLC (previously Integrated Securities LLC) acted as independent broker
Dubai: 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 has completed its share buy-back programme, as part of its strategy to realise value for shareholders holding equity, which has been trading at a significant discount to the REIT’s asset valuations. The initiative has also achieved its objectives of preventing disproportionately negative movements in the share price resulting from small trades as well as providing additional liquidity.
ENBD REIT allocated up to USD 3.5 million for the programme, to facilitate the acquisition of 4,401,340 shares at a price no higher than 10% of the previous day’s volume weighted average trading price (“VWAP”) and its previous six months’ VWAP as prescribed by the regulator. The programme was effective from 21st February 2019 until 30th September 2019 unless fully executed at an earlier date. The buy-back programme was placed on hold during ENBD REIT’s closed period, from 1st April 2019 until the announcement of its full year results. ENBD REIT conducted 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.
Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said:
“The rationale for implementing the buy-back was to realise value for shareholders by repurchasing shares that were trading at a significant discount to the market valuations of our underlying assets. Other benefits of the programme included improved liquidity for our stock and preventing disproportionate movements in the share price, which had been caused by small trades prior to the programme commencing. The buy-back did not result in an improved share price, which continues to be affected by soft real estate and equity market conditions, but we are pleased with its overall outcome and may look to continue it in the future.”
ENBD REIT’s management and directors identified value in utilising excess cash held within the REIT to purchase and subsequently cancel shares, with the aim of achieving higher returns and projected dividend yields for investors in the future. The buy-back programme was limited to the extent that it did 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.
Shares acquired during the programme have been cancelled within the regulatory timeline. SHUAA Securities LLC (previously Integrated Securities LLC) were appointed as independent brokers to execute the programme on behalf of ENBD REIT, via the Order Book of Nasdaq Dubai. ENBD REIT’s Board of Directors did not participate in the share buy-back programme.
-Ends-
For more information:
ENBD REIT (Investor Relations)
Julia Ward-Osseiran
julia.osseiran@instinctif.com
+971 (0) 4 509 3010
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) 55 104 3586
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.
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