Dubai, UAE – The Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced that its Net Asset Value (NAV) as at 30 September 2022, stands at $172 million or $0.69 per share, up from $166 million the previous quarter.
The property portfolio value increased by $4.7 million from the previous quarter to $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 the company had posted a robust performance building on the positive trajectory of the first quarter. “Occupancy rates and gross income continued to rise, driving the uptrend in portfolio valuations across all sectors,” Taylor said. “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.”
ENBD REIT achieved a gross rental income of $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.
The management team recommended to the Board of Directors an interim dividend of $4.5 million or $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 December 6, 2022 with the payment date set for December 21, 2022.