Dubai, United Arab Emirates, 17th July 2018:   ENBD REIT (CEIC) Limited (“ENBD REIT”), the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced its Net Asset Value (“NAV”) for the period ended 30th June 2018. ENBD REIT’s NAV is USD 289 million (AED 1.1 billion), or USD 1.14 per share, following dividend and return of capital payments made in June 2018. This equates to a quarterly return of 0.29% due to net rental income being offset by slight valuation decreases. The total property portfolio value stands at USD 463 million (AED 1.7 billion), with diverse holdings covering 11 properties across the office, residential and alternative real estate sectors. 

 

Following a series of acquisitions that led to diversification of ENBD REIT’s portfolio in 2017, current sector allocation stands at 64% offices, 20% residential and 16% alternative – including schools, student accommodation and retail. Portfolio occupancy increased from 89% in the previous quarter to reach 90% in Q1. Gross yield also increased to reach 8.4%, due to successful leasing efforts mainly in the residential portfolio. 

 

In June, ENBD REIT made final payments to shareholders for the year ended 31st March 2018. During the full year period, total payments of USD 21.7 million (AED 79.8 million) were 7.2% of NAV and 8.6% of the share price, or USD 0.0854 per share. These payments included an interim dividend of USD 0.0382 per share and a final dividend of USD 0.0129 per share, as well as a return of capital of USD 0.0343 per share. The reduced NAV, down from USD 1.18 per share in the previous quarter, is due to cash payments made to shareholders in the form of the final dividend and return of capital in June.  After recommendation by the Board of Directors, the return of capital was approved by the shareholders at ENBD REIT’s AGM on 3rd June 2018, in recognition of adjustments made to the dividend payment cycle in December 2017, to be aligned with the REIT’s financial year. 

 

Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said:

 

“While the local real estate market remains challenging – and this has put pressure on valuations in the portfolio – we have been successful in both protecting and improving income. Gross yield from the portfolio has increased, thanks to the efforts of our asset management team, who have been particularly successful in leasing our residential assets. Gross yield on the portfolio is up slightly to 8.4%, compared with 8.3% in the previous quarter, with net yield from rental income at 4.5% on an annualised basis. Looking ahead, we are exploring new financing options that will facilitate further expansion of our portfolio into alternative asset classes – mitigating risks prevailing in local residential and office markets.”

 

ENBD REIT’s Gross Asset Value (GAV) stood at USD 457 million for the period ended 30th June, with a Loan-to-Value (LTV) ratio of 37%, and gross rental yield on NAV of 13.2%. The REIT intends to maintain the growth and diversification of its portfolio, by seeking acquisition of income generating assets in Dubai, Abu Dhabi and the Northern Emirates – subject to tenant demand. In December 2017, the Board of Directors approved a decision to re-align ENBD REIT’s dividend calendar with the financial calendar ending on 31st March, with dividends paid to shareholders semi-annually following March and September quarter-ends.