Dubai - Mubasher: ENBD REIT Plc, a Dubai-based Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, on Wednesday announced its financial results for the year ended 31 March 2019.
Net asset value (NAV) stood at $270 million or $1.08 per share during the 12-month period ended in March, while the total value of its property portfolio reached $450 million, according to a press release.
ENBD REIT’s total loans amounted to $180 million at a loan-to-value ratio of 40%, the Nasdaq-listed firm said.
In the same vein, the company’s board of directors has proposed a cash dividend of $5.4 million or $0.0215 per share, which is subject to the approval of shareholders at the annual general meeting set to be held on 24 June.
It is worth noting that an interim dividend of $6.9 or $0.0270 per share was previously paid to shareholders for the six-month period ended 30 September 2018, which brings total dividend payable to shareholders for the year ended 31st March 2019 to $12.268 million.
The company plans to maintain paying dividends on a semi-annual basis, according to the release.
Anthony Taylor, head of real estate at Emirates NBD Asset Management, said: “We are pleased to announce our full-year results, and to be delivering consistent dividend income returns to shareholders. While local real estate market headwinds have put pressure on property valuations, our performance indicates that the portfolio’s rental income is resilient.”
“This is borne out by the fact that the total property portfolio value has reduced by only 2.8% – outperforming market trends across real estate asset classes – with average occupancy robust at 86% and rental income improving by more than USD 5 million year-on-year,” he added.
Furthermore, portfolio occupancy stood at 86% on the back of an effective leasing strategy that achieved 84% occupancy in the office portfolio, 81% occupancy in the residential portfolio, and 100% occupancy in the alternative portfolio.
The alternative portfolio covers student accommodation, education, and retail assets, ENBD REIT pointed out, adding that it seeks expansion into new asset classes including industrial, healthcare, and education.
Moreover, the company’s weighted average unexpired lease term for the portfolio stands at 3.48 years, the release indicated.
