Dubai PR Network, Online Press Release from Dubai and Middle East
 
Banking & Insurance(Banking & Investments)
Filter PR by
  
ENBD REIT announces Q1 NAV of USD 255 million; active leasing strategy protects occupancy
 
  • Ex-dividend NAV at USD 255 million or USD 1.02 per share
  • Cum-dividend NAV of USD 260 million or USD 1.04 per share prior to final dividend of USD 5.4 million approved by shareholders on 24th June 2019 and subsequently paid on 15th July 2019 
  • Active leasing strategy boosts Burj Daman occupancy to 77%, Binghatti Terraces to 89%
  • Blended occupancy steady at 82%, down by just 4% despite loss of significant tenant 
 
Dubai, United Arab Emirates, 1st August 2019: 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 for its first quarter ended 30th June 2019. ENBD REIT’s NAV stood at USD 255 million ex-dividend (USD 1.02 per share) at the close of the quarter, which translated into a cum-dividend NAV of USD 260 million prior to the approval and payment of a USD 5.4 million dividend. The dividend payment relates to the final dividend due to shareholders as at 31st March 2019, following shareholder approval at the recent AGM on 24th June 2019 and paid on 15th July 2019.
 
ENBD REIT’s property portfolio value stands at USD 437 million, compared to USD 450 million for the previous quarter, as a result of valuation losses resulting from the prevailing soft real estate market conditions and due to one of the portfolio’s largest tenants, Huawei, vacating from Al Thuraya Tower 1 in Dubai Media City, relocating to their own purpose built head office, during this period. The portfolio comprises diverse holdings totalling 11 properties across office, residential and alternative asset classes. Gross yield on the portfolio was strong at 14.3%, with leasing success at Burj Daman and Binghatti Terraces, where occupancy increased by 3% and 16% respectively. Occupancy across the portfolio currently stands at 82%, down just 4% despite the loss of Huawei. With the Weighted Average Unexpired Lease Term (WAULT) steady at 3.56 years. 
 
During the quarter, ENBD REIT successfully concluded the refinancing of its existing debt, securing a USD 177 million facility with Mashreq Bank at favourable terms which management anticipates will generate significant savings going forward on the REIT’s single largest cost line. As at 30th June 2019, the REIT’s Gross Asset Value (GAV) stood at USD 435 million, with the Loan-to-Value (LTV) ratio at 41%. ENBD REIT intends to maintain growth and diversification of its portfolio by acquiring income generating assets in Dubai, with a focus on alternative assets carrying long-term leases. 
 
Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said:
 
'Headwinds have prevailed across the local real estate market, and these have put pressure on valuations. In addition, we saw valuation losses on our largest asset by value, Al Thuraya Tower – the result of a large tenant moving to a purpose-built head office. Despite these challenges, we have maintained strong occupancy levels, with robust growth in key assets including Burj Daman and Binghatti Terraces. These are thanks to a leasing strategy designed to maximise and subsequently maintain income generated by the portfolio in challenging market conditions. 
 
In addition to building resilience in the portfolio, we have focused on reducing costs. Year-on-year, Q1 operating expenses are down 18% as a result of active asset management and lower building expenses. We’re also pleased to have finalised more favourable commercial terms on our debt facilities, a move that will be supportive of acquisitions to further diversify our portfolio.”


Posted by : Dubai PR Network Editorial Team
Viewed 3013 times
PR Category : Banking & Investments
Posted on : Thursday, August 1, 2019  3:42:00 PM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : Trade Bank of Iraq Continues Strong Annual Growth and Record...
Next Story : UAB reports Net Profit of AED36m for H1 2019
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
VARA - 2019 Fall/Winter Collection [7625-Views]
Nursery children gift Eid packages to labourers [5588-Views]
An increase of 36.7% compared to the first quarter [5051-Views]
US $859bn Oil, Gas and Petrochemical Projects Underway or Planned in the MENA Region as Gl... [4868-Views]
Eid Al Adha Event Program [4862-Views]
Dubai Festival City Mall Celebrates Global Independence Days with Exclusive IMAGINE shows [4843-Views]
Eid Gifting [4544-Views]
Turkish Airlines continues its journey to the top with new cabin uniforms [4532-Views]
Alisha Moopen appointed as the Deputy Managing Director of Aster DM Healthcare [4459-Views]
Evonik sticks to full-year outlook despite cooling economy [4331-Views]
Zulekha Hospital Sharjah Honored With Baby Friendly Hospital (BFHI) Accreditation From Uni... [4105-Views]
Benefits to young people of becoming a freelancer a focus at International Youth Day event [4099-Views]
Al-Futtaim Toyota delivers strong H1 results [4038-Views]
GEMS Education offers up some expert ways to get your children to read in the late summer ... [4032-Views]
FireEye Identifies Prolific Chinese Cyber Threat Group [3941-Views]
Eyes of the World on Expo 2020 Dubai [3941-Views]
MoHAP Announces Working Hours at Primary Health Care & Preventive Medicine Centers During ... [3916-Views]
Lenovo Introduces Single-socket Servers, Designed Specifically for Edge and Data-intensive... [3819-Views]
Facebook Users to Become More Aware of Their Data Usage [3776-Views]
SCCI and Sharjah Police to Launch Joint initiatives to Meet Business Sector Aspirations in... [3666-Views]
Empower awards network extension contract worth AED 25 million [3630-Views]
LG Signature Responds to Market Demand for Luxury Appliances With Expanded Lineup [3611-Views]
9th Muslim World Business and Investment Zone to host Jewels of the Muslim World Award and... [3538-Views]
DFSA signs MoU with the Central Bank of Egypt [3495-Views]
Sharjah Exports Development Center Achieves Record Results in First Half of 2019 [3471-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories