- Portfolio occupancy remains steady at 75%
- Annual final dividend of USD 0.0176 per share was paid on 27th July 2021
- Expenses down 16.9% following proactive cost management initiatives
Dubai, United Arab Emirates: ENBD REIT (CEIC) PLC (“ENBD REIT”), the Shari’acompliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced its Net Asset Value (“NAV”) for the first quarter ended 30th June 2021. ENBD REIT’s NAV stood at USD 174 million, as compared to USD 180 million for the previous quarter. The decline in NAV, decreasing by 1%, is predominantly due to sustained valuation pressures and softening real estate market conditions as the regional macroeconomic conditions remain in the early stages of postpandemic recovery.
The management team have successfully reduced expenses by 16.9%, following a year of actively managing down operating costs in the portfolio. Occupancy in the portfolio remains stable at 75% for the period ending 30th June 2021 compared to 76% as at 31st March 2021, and 75% for the same period in the previous year. The active leasing strategy catering to tenants’ needs continues to play a significant role in protecting occupancy rates, but challenging real estate market conditions subdued further recovery. The Weighted Average Unexpired Least Term (“WAULT”) has increased from 3.2 years to 3.97 years as 30th June 2021 compared to the previous year.
Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said: “In light of adverse conditions, our net rental income and occupancy rates for the first quarter have held up well – the result of active portfolio management. Meanwhile, NAV remains under pressure, declining by 1% from the previous quarter. Our priority in recent quarters has been to ensure stable occupancy, which we have achieved through a range of initiatives, including support for struggling tenants and focusing on asset upgrades. Total expenses have been reduced by almost 17% compared to 30th June 2020, the result of the management team’s proactive cost management initiatives, including renegotiating our contracts with service providers, lower financing costs from our Shari’acompliant debt facilities which account for the lion’s share of the REIT’s costs and reduced management fees due to a lower NAV.
In terms of the portfolio, we are looking at new ways to bring further value to existing tenants through a series of strategic upgrades currently in progress. Most notably, at Al Thuraya Tower 1, where we are taking advantage of lower occupancy rates to make significant upgrades to improve the look and feel of the building. We also recently completed sub-division works at Burj Daman to create units that cater to smaller businesses and corporates looking to downsize, by reducing both costs and office space requirements, given that flexible working is becoming a more normal practice. We continue to take a pragmatic approach to potential asset disposals, with a number of assets in the portfolio being considered for sale, where we believe that fair value can be achieved.”
Read the full story here.
-Ends-
© Press Release 2021
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
