ENBD REIT passes one year on Nasdaq Dubai with key investment milestones

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  • ENBD REIT’s portfolio value has grown by 46% since March 2017 IPO, through acquisitions and rental returns
  • USD 105 million raised by listing has been deployed across four strategic acquisitions
  • ENBD REIT successfully diversified into ‘alternative’ assets, now 16% of its portfolio
  • Net Asset Value (NAV) as at 31 December 2017 is USD 300 million (USD 1.18 per share)
Hamed Ali – CEO Nasdaq Dubai – Tariq Bin Hendi – Chairman ENBD REIT

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 celebrated its One Year Anniversary since listing on Nasdaq Dubai, with a series of key milestones passed during the twelve months from March 2017. Senior members of the Nasdaq Dubai and ENBD REIT teams marked the occasion with a celebration in Dubai International Financial Centre (“DIFC”).

On 23 March 2017, ENBD REIT admitted its ordinary shares to trading on Nasdaq Dubai following its initial public offering (IPO) under ticker symbol ENBDREIT. The offer to institutional investors, at a price of US$ 1.11/share, saw the stock climb in value to USD 1.17 on the first day of trading, with gross proceeds from the transaction amounting to USD 105 million. During the twelve months since listing, ENBD REIT’s property portfolio has grown by USD 146 million or 46% to reach USD 460 million, with the weighted average unexpired lease term (“WAULT”) across assets doubling to 3.5 years. Occupancy of the portfolio increased by 11% during the period, to reach a total of 88%, while ENBD REIT’s Loan to Value (“LTV”) ratio now stands at 36%, having grown from 28% since listing.

Mr. Tariq Bin Hendi, Chairman of ENBD REIT, commented: “At the time of listing on Nasdaq Dubai, the strong interest we received from GCC investors was a testament to the appetite that existed for our equity story, and of the appeal of the local REIT market. The listing has enabled us to embark on our strategic acquisition plan, and the team have been successful in securing a series of high quality income generating properties – across a range of asset classes. Our improved capital structure has allowed us to remain more fully invested and to focus on achieving long-term returns for our shareholders. The current acquisition pipeline remains active, and we are exploring further financing opportunities to support our ambitions to grow and diversify the portfolio. Nasdaq Dubai has proved to be the ideal exchange for ENBD REIT, providing access to international capital and promoting best practice standards of corporate governance among issuers.”

Use of proceeds: strategic acquisitions

In the last year, the proceeds from the offer have been deployed in a series of strategic acquisitions that have resulted in a re-profiling of ENBD REIT’s portfolio, which now comprises 63% office, 21% residential and 16% alternative assets. In total, ENBD REIT acquired four new assets: the Uninest student accommodation facility in Dubailand (USD 33 million); the under-construction South View School in Remraam Community (USD 15 million); The Edge office building in Dubai Internet City (USD 76 million); and Phase 1 of the Souq Extra Community Retail Centre in Dubai Silicon Oasis (USD 23 million), with an agreement to acquire Phase 2 on completion in the final quarter of 2018. All four of the acquisitions executed in 2017 were for assets that were 100% occupied on long-term leases.

Mr. Hamed Ali, Chief Executive Officer of Nasdaq Dubai, said:

“The success of ENBD REIT’s listing demonstrates the capacity of Dubai’s capital markets to strengthen and support the nation’s real estate sector, by enabling investors to gain exposure to it without directly owning property. As the UAE’s established exchange for REIT listings Nasdaq Dubai is delighted to have provided an effective platform for ENBD REIT’s capital raising in its IPO followed by trading in the secondary market. Through the global visibility that we provide, we look forward to continuing to support ENBD REIT’s engagement with regional and international investors as it pursues its development strategy.”

ENBD REIT is a leading Shari’a compliant Real Estate Investment Trust, holding properties across Dubai’s office, residential and alternative asset classes. As at 31 December 2017, the Company’s Net Asset Value (NAV) was USD 300 million or USD 1.18 per share. In July 2017, ENBD REIT paid its first interim dividend since listing. The dividend payment amounted to USD 0.0382 per share, at an annualised equivalent yield of 7.1%. The semi-annual dividend distribution calendar has since been re-aligned to coincide with ENBD REIT’s financial year, which ends on 31 March.