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ENBD REIT records 17% YoY lower net asset value; dividends proposed

ENBD REIT records 17% YoY lower net asset value; dividends proposed
ENBD REIT’s board has recommended a final dividend of $4.4 million
ENBD REIT
ENBDREIT
1.74% 0.35 0.01

UAE – Mubasher: ENBD REIT recorded a net asset value (NAV) of $180 million or $0.72 per share for the full year ended 31 March 2021, down 17% year-on-year (YoY).

The company's total value of the property portfolio decreased by 12% YoY to $360 million as of 31 March 2021, according to a press release on Sunday.

Lower valuations were attributed to the dual pressures of a softening real estate market and the economic impact of the coronavirus (COVID-19) pandemic on gross rental income.

Meanwhile, ENBD REIT’s board has recommended a final dividend of $4.4 million or $0.0176 per share, equivalent to 2.44% of NAV, for the six-month period ended 31 March 2021.

Hence, the total dividend payable to shareholders for the year reached $9.25 million, equivalent to 5.13% of the cum-dividend NAV.

The Head of Real Estate at Emirates NBD Asset Management, Anthony Taylor, said: "As pressures in the market have continued to impact valuations, we have been using this as an opportunity to renegotiate contractual leases with tenants at lower rates that are in line with market benchmarks, while extending contractual lease terms further into the future."

Taylor added: "Earlier in the year we acted to reduce future financing costs by securing a hedging facility with Mashreq Bank, to hedge 56% of total outstanding debt, while leaving room for further hedging if the market indicates that lending rates are to start rising again."