ENBD REIT announces H1 NAV of $198 million

DUBAI: ENBD REIT (ENBD REIT), the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced its Net Asset Value as at 30th September 2020. ENBD REIT’S NAV stands at $198 million ($0.79 per share), decreasing from $230 million from the 6-month period ended 31st March 2020, predominantly due to valuation pressure.

The value of the property porfolio has been adjusted down to $377 million (from $410 million at March 31, 2020) in light of sot real estate market conditions and lower rental income resulting from the Covid-19 pandemic.

Occupancy in the porfolio remains stable at 76 per cent for 30th September 2020 compared to 82 per cent for March 31, 2020. The lower blended occupancy rate reflects soter occupancy at the REIT’S residential assets – in particular Binghati Terraces and Arabian Oryx House – which has been partially offset by positive leasing performance from assets in the office porfolio including Dubai Healthcare City 25 and Dubai Healthcare City 49. The Weighted Average Unexpired Lease Term (“WAULT”) for the porfolio improved from 3.24 years in March 2020 to 4.05 years in September 2020, due to proactive leasing efforts and renewals by a number of major tenants during this period, including Oracle who renewed for 5 years at The Edge in Dubai Internet City.

The Board of Directors approved an interim dividend of $4.85 million or $0.0194 per share from the net rental income generated during the 6-month period, which is 4.9 per cent down from the dividend paid to shareholders relating to the previous 6-month period ended March 31, 2020.