ENBD REIT Announces NAV of USD 292 million

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  • Total Property Portfolio Value stands at USD 352 million (AED 1.291 billion), an increase of 11.5% following the Uninest student accommodation acquisition in May 2017
  • Interim dividend of USD 0.0382 per share paid for the 6-month period ending 30th June 2017
  • Portfolio occupancy at 86%, rising by 1% on the previous quarter

Dubai, United Arab Emirates: ENBD REIT (CEIC) Limited (“ENBD REIT”), the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited (the “Fund Manager”), has announced its Net Asset Value for 30th June 2017.

ENBD REIT’s second NAV since listing, which has increased by 1.74% in the quarter (cum-dividend), now stands at USD 292 million (AED 1.074 billion) (ex-dividend and USD 1.15 per share). The Property Portfolio Value now stands at USD 352 million (AED 1.291 billion).

The REIT’s first interim dividend since listing on Nasdaq Dubai was announced on the 22nd June and paid to shareholders on 12th July 2017. The dividend totaled USD 9,713,207, or USD 0.0382 per share. ENBD REIT aims to regularly distribute a semi-annual dividend with a target of achieving a return of 7% per annum or more.

Anthony Taylor, Fund Manager, Real Estate, Emirates NBD Asset Management, commented:

“We are pleased to announce the first dividend as a listed entity in this, quarter which was largely on target in terms of investors’ expectations. Occupancy rates in the portfolio have improved to 86% in the first quarter of our financial year, following the acquisition of the Uninest Dubailand student accommodation facility from GSA in May 2017. This was an important acquisition for diversifying our holdings into an ‘alternative’ asset class, and has added further value to our portfolio by improving the unexpired lease term by 34% to 2.3 years. Further acquisition announcements are expected to follow shortly with management finalizing due diligence on a number of attractive investment opportunities.”

ENBD REIT invests in predominantly income generating real estate, with the objective of providing investors with a regular source of income, by way of annual dividends of at least 80% of net audited annual income, and potential capital appreciation.

Leasing at Binghatti Terraces commenced in May 2017 with the building already 47% occupied by rental income. The building was acquired in 2016 with a 1-year rental guarantee provided by the seller, which expired on 26th July 2017.

Core Savills have been appointed to manage the Remraam residential building following Media Rotana vacating the property in July at lease expiry. Reinstatement works are currently underway with leasing to individual tenants expected to start early August. Remraam is ENBD REIT’s smallest asset, at 6.4% by value, but remains a focus for management to ensure the building is occupied and generating rental income in the coming months.

ENBD REIT is a leading Shari’a compliant Real Estate Investment Trust, invested in properties across Dubai’s office, residential, and alternative real estate asset classes. In March 2017, the Company successfully raised USD 105 million when it listed on Nasdaq Dubai. The REIT’s predecessor fund, Emirates Real Estate Fund (“EREF”), consistently paid a semi-annual dividend since its inception in 2005.

ABOUT ENBD REIT:

ENBD REIT (CEIC) Limited (“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.

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.

Residential:

Arabian Oryx House (Barsha Heights)

A residential tower with 128 units in the free zone Barsha Heights, Dubai. The building comprises mainly of one and two -bedroom 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. The building comprises mainly of studio and one-bedroom apartments.

Remraam Residential (Dubailand)

Two residential towers offering 105 units in mainly one and two-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.

HIGHLIGHTS

Property portfolio value USD 352 million
NAV USD 292 million (USD 1.15 per share)
LTV (on GAV) 29%
Occupancy 86%
WAULT (years) 2.29
No. of properties 8
Sectors Office                    62%
Residential           28%
Alternative           10%