01 Apr, 2018ENBD REIT passes one year on Nasdaq Dubai with key investment milestones

ENBD REIT passes one year on Nasdaq Dubai with key investment milestones

• ENBD REIT’s portfolio value has grown by 46% since March 2017 IPO, through acquisitions and rental returns

(CEIC) Limited ("ENBD REIT"), the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited (the "Fund Manager"), has celebrated its One Year Anniversary since listing on Nasdaq Dubai, with a series of key milestones passed during the twelve months from March 2017. Senior members of the Nasdaq Dubai and ENBD REIT teams marked the occasion with a celebration in Dubai International Financial Centre ("DIFC").

On 23 March 2017, ENBD REIT admitted its ordinary shares to trading on Nasdaq Dubai following its initial public offering (IPO) under ticker symbol ENBDREIT. The offer to institutional investors, at a price of US$ 1.11/share, saw the stock climb in value to USD 1.17 on the first day of trading, with gross proceeds from the transaction amounting to USD 105 million. During the twelve months since listing, ENBD REIT’s property portfolio has grown by USD 146 million or 46% to reach USD 460 million, with the weighted average unexpired lease term ("WAULT") across assets doubling to 3.5 years. Occupancy of the portfolio increased by 11% during the period, to reach a total of 88%, while ENBD REIT’s Loan to Value ("LTV") ratio now stands at 36%, having grown from 28% since listing.

Mr. Tariq Bin Hendi, Chairman of ENBD REIT, commented:

In the last year, the proceeds from the offer have been deployed in a series of strategic acquisitions that have resulted in a re-profiling of ENBD REIT’s portfolio, which now comprises 63% office, 21% residential and 16% alternative assets. In total, ENBD REIT acquired four new assets: the Uninest student accommodation facility in Dubailand (USD 33 million); the under-construction South View School in Remraam Community (USD 15 million); The Edge office building in Dubai Internet City (USD 76 million); and Phase 1 of the Souq Extra Community Retail Centre in Dubai Silicon Oasis (USD 23 million), with an agreement to acquire Phase 2 on completion in the final quarter of 2018. All four of the acquisitions executed in 2017 were for assets that were 100% occupied on long-term leases.

Mr. Hamed Ali, Chief Executive Officer of Nasdaq Dubai, said:

ENBD REIT is a leading Shari’a compliant Real Estate Investment Trust, holding properties across Dubai’s office, residential and alternative asset classes. As at 31 December 2017, the Company’s Net Asset Value (NAV) was USD 300 million or USD 1.18 per share. In July 2017, ENBD REIT paid its first interim dividend since listing. The dividend payment amounted to USD 0.0382 per share, at an annualised equivalent yield of 7.1%. The semi-annual dividend distribution calendar has since been re-aligned to coincide with ENBD REIT’s financial year, which ends on 31 March.