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- Interim dividend of USD 0.0196 per share to be paid on the 17th December 2019
- Active leasing strategy supports portfolio occupancy levels at 80%
Dubai: ENBD REIT (CEIC) PLC (“ENBD REIT”), the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced its Net Asset Value as at 30th September 2019. ENBD REIT’s NAV stands at USD 254 million (USD 1.02 per share), down slightly from the previous quarter’s NAV of USD 255 million as at 30th June 2019. The Board of Directors have approved an interim dividend of USD 0.0196 per share from the net rental income generated during the period 6-month period ending 30th September 2019.
As at 30th September, ENBD REIT’s property portfolio value stands at USD 435 million, compared to USD 437 million at the end of previous quarter, with a diverse portfolio totaling 11 properties across office, residential and alternative assets. Funds from operations (the net rental income generated before movements in valuation) for the 6-month period were USD 5 million, down 7.8% compared to the previous 6-month period. This movement was largely due to lower occupancies, down 6% to 80% across the portfolio and softer rental rates being achieved due to real estate market conditions.
ENBD REIT’s approved interim dividend of USD 0.0196 per share shall be paid on the 17th December 2019 with ENBD REIT's shares trading ex-dividend on 4th December 2019, and the record date for the interim dividend set for 5th December 2019. This interim dividend equates to an annualised dividend yield of 3.86% on NAV per share or 8.17% on the current share price.
Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said:
"Our NAV remains stable compared to the previous quarter demonstrating our ability to mitigate losses and safeguard income by taking a proactive asset management approach in challenging market conditions. We saw a slight decrease in our portfolio occupancy this quarter with pressure coming from residential properties and in our office buildings in DHCC. We are taking positive steps to maintain occupancy levels by introducing initiatives to attract tenants including coverage of relocation expenses for residential tenants, providing free shuttle facilities between assets, offering smaller, fully-fitted offices in Burj Daman, and implementing short-term rental options in our residential assets.”
Earlier in 2019, ENBD REIT secured a debt facility from Mashreq Bank at competitive rates, which is expected to reduce its cost of borrowing into the future. This debt also facilitates ENBD REIT’s strategy to acquire additional properties with a view to increasing the alternative assets holding within the portfolio. The Gross Asset Value (GAV) for ENBD REIT stood at USD 435 million for the period ended 30th September 2019, with a Loan-to-Value (LTV) ratio of 42%.
-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.
HIGHLIGHTS*
Property portfolio value | USD 435 million |
NAV | USD 254 million (USD 1.02 per share) |
LTV (on GAV) | 42% |
Occupancy | 80% |
WAULT (years) | 3.47 |
No. of properties | 11 |
Sectors | Office 64% |
| Residential 18% |
| Alternative 18% |
*All figures are as at 30th September 2019
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