Dubai - Mubasher: The net asset value (NAV) of ENBD REIT amounted to $174 million during the first quarter (Q1) ended 30 June 2021, down 1% from $180 million in the earlier quarter.

Lower NAV is attributed to continued valuation pressures and softening real estate market conditions amid the early stages of post-pandemic recovery of the regional macroeconomic conditions, according to a press release on Tuesday.

Occupancy in the portfolio of the Shari’a-compliant real estate investment trust, managed by Emirates NBD Asset Management Limited, stood at 75% for the first quarter, compared to 76% as of 31 March 2021 and 75% for the same period in the previous year.

The real estate investment trust has distributed dividends of $9.25 million for the year ended 31 March 2021, equivalent to 8.6% of annualised dividend return of ENBD REIT’s share price.

Meanwhile, the loan-to-value (LTV) ratio has risen to 52.7% due to valuation pressures in the property portfolio, and the management team is in the process of refinancing a $45 million debt facility with Standard Chartered Bank.

The Head of Real Estate at Emirates NBD Asset Management, Anthony Taylor, said: "Our priority in recent quarters has been to ensure stable occupancy, which we have achieved through a range of initiatives, including support for struggling tenants and focusing on asset upgrades."

Taylor added: "In terms of the portfolio, we are looking at new ways to bring further value to existing tenants through a series of strategic upgrades currently in progress. Most notably, at Al Thuraya Tower 1, where we are taking advantage of lower occupancy rates to make significant upgrades to improve the look and feel of the building."