UAE– Mubasher: ENBD REIT (CEIC), the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, reported a Net Asset Value (NAV) worth of $254 million, or $1.02 per share, over the six-month period ended 30 September 2019, slightly down from $255 million as at 30 June.
ENBD REIT's board have approved an interim dividend of $0.0196 per share from the net rental income generated during the six-month period ended 30 September to be paid on 17 December, said a press release on Wednesday.
The interim dividend “equates to an annualised dividend yield of 3.86% on the NAV per share or 8.17% on the current share price.”
ENBD REIT’s property portfolio value stood at $435 million on 30 September, compared to $437 million a quarter earlier. The entity has also seen a diverse portfolio totalling 11 properties across office, residential, and alternative assets.
The Gross Asset Value (GAV) for ENBD REIT stood at USD 435 million for the 2019 period, with a Loan-to-Value (LTV) ratio of 42%.
Funds from operations (the net rental income generated before movements in valuation) decreased by 7.8% to $5 million from April to September 2019, compared to the six-month period ended 31 March 2019. The drop is primarily ascribed to lower occupancies, down 6% to 80% across the portfolio and softer rental rates as a result of real estate market conditions.
"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,” said the head of real estate at Emirates NBD Asset Management, Anthony Taylor.
He added, “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 with the aim to reduce its cost of borrowing into the future, and facilitate its strategy to increase the alternative assets holding.
