ENBD REIT announces Q3 NAV of $246m
ENBD REIT (CEIC), a Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management, has announced a net asset value (NAV) of $246 million ($0.98 per share) as at December 31, 2019.
More Stories
ENBD REIT (CEIC), a Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management, has announced a net asset value (NAV) of $246 million ($0.98 per share) as at December 31, 2019.
This follows the dividend payment to shareholders of $4.9 million on December 17, 2019, as compared with the previous quarter’s NAV of $254 million cum-dividend.
ENBD REIT’s property portfolio value stands at $429 million, reducing from $435 million in the previous quarter, as a result of valuation losses predominantly in residential holdings, as well as smaller adjustments in the office and retail assets. These valuation losses are attributed to a general softness in the local real estate market. The portfolio comprises diverse holdings totalling 11 properties across office, residential and alternative asset classes.
Occupancy across the portfolio improved slightly to 81% with a healthy Weighted Average Unexpired Lease Term (“WAULT”) of 3.37 years. As at 31stDecember 2019, the REIT’s Loan-to-Value (“LTV”) ratio stood at 42%, and generated a net rental yield of 4.2%on NAV, or 8.7% on market capitalisation at the prevailing share price.
This week, ENBD REIT published a notice calling for an Extraordinary General Meeting (“EGM”) on 12thFebruary 2020 to seek approval from shareholders to transition to a privately held structure, subject to various other regulatory approvals. The REIT’s management believes that the proposed private structure is better suited for shareholders looking to realise improved returns over a fixed investment horizon.
Anthony Taylor, head of Real Estate at Emirates NBD Asset Management, said: "Whilst market headwinds continued to put pressure on valuations, our proactive leasing strategy across the portfolio resulted in improved occupancy levels, demonstrating the resilience of our assets. We believe that shifting to a private structure with a limited-term investment horizon is the best strategy to realise value for shareholders and we have now invited our shareholders to vote on the proposed restructuring at the upcoming EGM.”
ENBD REIT intends to maintain the growth and diversification of its portfolio and may still look to acquire income generating assets, using existing available financing, should these assets meet the current acquisition criteria. Assuming the proposed resolutions are passed at the forthcoming EGM, the net proceeds of any future disposals will be passed on to shareholders by way of dividends or a return of capital. – TradeArabia News Service
Projects
