Dubai: ENBD REIT the Shariah compliant real estate investment trust managed by Emirates NBD Asset Management Limited has reported a net asset value (NAV) $180 million or $0.72 per share full year ended March 31, 2021 down 17 per cent year on year.
The fund reported the total value of the property portfolio at $360 million, down by 12 per cent compared to the previous year. ENBD REIT’s loan-to-value (LTV) ratio stood at 52 per cent.
The fund attributed the onward movement on valuations was driven by the dual pressures of a softening real estate market and pandemic-induced economic pressures that affected gross rental income.
The 2020-21 financial year was challenging, with soft market conditions exacerbated by the Covid-19 pandemic. During the year, we sought to safeguard occupancy rates to limit downward movement on rental income, while reducing fund and operating expenses throughout the portfolio,” said Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management.
Occupancy in the portfolio remained healthy, with management providing a range of solutions to support tenants in genuine financial distress in order to secure income. Meanwhile, in an effort to continue to reduce costs, management reduced fund and portfolio management expenses significantly, while the Fund benefited from lower finance costs due to a lower lending rate environment.
ENBD REIT’s board of directors has proposed a final dividend of $4.4 million or $0.0176 per share – equivalent to 2.44 per cent of NAV and 4.10 per cent of the share price – for the 6 month period ending March 31, 2021, subject to shareholder approval at the annual general meeting.
The total dividend payable to shareholders for the year is USD 9.25 million – equivalent to 5.13 per cent of the cum-dividend NAV and 8.62 per cent of the share price. Following the AGM and subject to shareholders’ approval, the shares will trade ex-dividend on 7th July 2021, with the record date set as 8th July 2021 and the payment date on 27th July 2021.