ENBD REIT (CEIC) Limited (“ENBD REIT”), the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited (the “Fund Manager”), has announced its Net Asset Value (“NAV”) for 30th September 2017. ENBD REIT’s third NAV since listing now stands at USD 295 million (AED 1.083 billion) or USD 1.16 per share. Following its acquisition of The Edge office building in Dubai Internet City in October 2017, ENBD REIT’s Property Portfolio Value stands at USD 434 million (AED 1.6 billion).
The Edge was acquired at a transaction value of USD 76.2 million (AED 280 million). The premier 92,000-square foot office building is 100% occupied and home to Oracle, Snapchat, and McGraw Hill. As a prime grade ‘A’ property, the building’s tenants enjoy a central and easily accessible address, high-end interior design, sustainable building infrastructure and quality facility management. The acquisition utilized a portion of ENBD REIT’s existing Islamic finance facility, meaning that the property portfolio is running at an efficient Loan-to-Value (LTV) ratio of 32%.
Anthony Taylor, Fund Manager, Real Estate at Emirates NBD Asset Management, commented:
“We are pleased to announce our third NAV since listing, which has shown continued growth following a series of strategic acquisitions executed during the summer. The portfolio has improved significantly with the recent transactions, successfully diversifying our holdings into ‘alternative’ asset classes such as education and student accommodation. We continue to seek high-quality, income generating assets for acquisition to reach our target Loan-to-Value (LTV) range of 40-45%, which would further enhance rental income returns for shareholders.”
ENBD REIT’s first interim dividend since listing on Nasdaq Dubai was announced on the 22nd June and paid to shareholders on 12th July 2017. The dividend totaled USD 9,713,207, or USD 0.0382 per share. ENBD REIT aims to regularly distribute a semi-annual dividend with a target of achieving a return of 7% per annum or more.
ENBD REIT invests in predominantly income generating real estate, with the objective of providing investors with a regular source of income, by way of annual dividends of at least 80% of net audited annual income, and potential capital appreciation.
ENBD REIT is a leading Shari’a compliant Real Estate Investment Trust, invested in properties across Dubai’s office, residential, and alternative real estate asset classes. In March 2017, the Company successfully raised USD 105 million when it listed on Nasdaq Dubai. The REIT’s predecessor fund, Emirates Real Estate Fund (“EREF”), consistently paid a semi-annual dividend since its inception in 2005.
