ENBD REIT announces H1 NAV of $1.02 per share

ENBD REIT, the Shari'a compliant real estate investment trust managed by Emirates NBD Asset Management, has announced that its Net Asset Value (NAV) as at September 30, 2019 stands at $254 million or $1.02 per share, down slightly from the previous quarter's NAV of $255 million as at June 30, 2019.

The board of directors have approved an interim dividend of $0.0196 per share from the net rental income generated during the six-month period ending September 30, 2019. As at September 30, ENBD REIT's property portfolio value stands at $435 million, compared to $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 six-month period were $5 million, down 7.8 per cent compared to the previous six-month period. This movement was largely due to lower occupancies, down six per cent to 80 per cent across the portfolio and softer rental rates being achieved due to real estate market conditions.

ENBD REIT's approved interim dividend of $0.0196 per share shall be paid on December 17, 2019 with ENBD REIT's shares trading ex-dividend on December 4, 2019, and the record date for the interim dividend set for December 5, 2019. This interim dividend equates to an annualised dividend yield of 3.86 per cent on NAV per share or 8.17 per cent 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."