ENBD REIT, the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced its Net Asset Value as at 30th September 2019. ENBD REIT’s NAV stands at USD 254 million (USD 1.02 per share), down slightly from the previous quarter’s NAV of USD 255 million as at 30th June 2019. The Board of Directors have approved an interim dividend of USD 0.0196 per share from the net rental income generated during the period 6-month period ending 30th September 2019.
As at 30th September, ENBD REIT’s property portfolio value stands at USD 435 million, compared to USD 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 6-month period were USD 5 million, down 7.8% compared to the previous 6-month period. This movement was largely due to lower occupancies, down 6% to 80% across the portfolio and softer rental rates being achieved due to real estate market conditions.
ENBD REIT’s approved interim dividend of USD 0.0196 per share shall be paid on the 17th December 2019 with ENBD REIT’s shares trading ex-dividend on 4th December 2019, and the record date for the interim dividend set for 5th December 2019. This interim dividend equates to an annualised dividend yield of 3.86% on NAV per share or 8.17% 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.”
Earlier in 2019, ENBD REIT secured a debt facility from Mashreq Bank at competitive rates, which is expected to reduce its cost of borrowing into the future. This debt also facilitates ENBD REIT’s strategy to acquire additional properties with a view to increasing the alternative assets holding within the portfolio. The Gross Asset Value (GAV) for ENBD REIT stood at USD 435 million for the period ended 30th September 2019, with a Loan-to-Value (LTV) ratio of 42%.