Tuesday 01, August 2017 by Jessica Combes

ENBD REIT announces NAV of $292 million


ENBD REIT (CEIC) Limited (“ENBD REIT”), the Shari'ah-compliant real estate investment trust managed by Emirates NBD Asset Management Limited (the “Fund Manager”), has announced its Net Asset Value (NAV) for 30 June 2017.

ENBD REIT’s second NAV since listing, which has increased by 1.74 per cent in the quarter, cum-dividend, now stands at $292 million, ex-dividend and $1.15 per share. The property portfolio value now stands at $352 million.

span style="font-size: small;">“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 per cent 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 per cent to 2.3 years. Further acquisition announcements are expected to follow shortly with management finalising due diligence on a number of attractive investment opportunities,” said Anthony Taylor, Fund Manager, Real Estate, Emirates NBD Asset Management.

span style="font-size: small;">The REIT’s first interim dividend since listing on Nasdaq Dubai was announced on 22 June and paid to shareholders on 12 July 2017. The dividend totalled $9,713,207, or $0.0382 per share. ENBD REIT aims to regularly distribute a semi-annual dividend with a target of achieving a return of seven per cent per annum or more.

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 per cent of net audited annual income, and potential capital appreciation.

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

span style="font-size: small;">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 per cent by value, but remains a focus for management to ensure the building is occupied and generating rental income in the coming months.   

span style="font-size: small;">ENBD REIT is a leading Shari'ah 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.  


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