DUBAI, 25th November, 2022 (WAM) — ENBD REIT (CEIC) PLC (ENBD REIT), the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced its Net Asset Value (NAV) as at 30 September 2022, reflecting a continued improvement to USD 172 million (USD 0.69 per share), up from USD 166 million the previous quarter and USD 164 million as of 30th September, 2021.
The property portfolio value increased by USD 4.7 million from the previous quarter to USD 362 million, driven by a portfolio-wide improvement in occupancy rates reaching 84 percent, from 75 percent this time last year, thanks to a sustained momentum in leasing activity as the real estate market experiences strong growth.
Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said: “We are pleased to announce a robust performance across the portfolio for the first half of the year, building on the positive trajectory initiated in the first quarter. Occupancy rates and gross income continued to rise, driving the uptrend in portfolio valuations across all sectors.
In a buoyant Dubai real estate market, we will maintain a cautious risk management strategy and prudent capital management approach to ensure that we continue to deliver reliable returns to our shareholders, especially in a rising interest rate environment which is set to offset some positive performance in our business in the upcoming quarters. As previously stated, we will also consider any attractive exit opportunities to ensure an optimal allocation of properties in our portfolio.”
ENBD REIT achieved a robust gross rental income of USD 15 million, up 0.7 percent from the same period last year, as occupancy improved despite the lower rent from Uninest following the renegotiation of the lease during Covid-19 pandemic. The Weighted Average Unexpired Lease Term (WAULT) stands at 4.13 years for the portfolio, and the Loan-to-Value (LTV) ratio remains stable at 54 percent.
Operating expenses went up by only 2.2 percent from the same period last year, as ENBD REIT continued to invest in the maintenance and modernization of its assets to drive occupancy across the portfolio. Fund expenses increased by 3.7 percent from the same period last year, in line with the movement in valuations. Moreover, finance costs went up 5.5 percent from the same period last year, mainly due to a challenging global macro-economic environment which has resulted in rising inflation and interest rates.
Adopting a prudent approach to maintain flexibility in a rising interest rate environment, the management team recommended to the Board of Directors an interim dividend of USD 4.5 million or USD 0.018 per share, in line with the first half of last year and generated from the net rental income. The shares will trade ex-dividend on 6th December, 2022 with the payment date set for 21st December, 2022.