ENBD REIT, the shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced its financial results for the year ended 31st March 2022, in which occupancy of its portfolio rose to 80% from 76% last year.

 

Its property portfolio value stood at $356 million, down 1.1% year-on-year whilst Net Asset Value (NAV) was $167 million or $0.67 per share at the end of the financial year, 7.4% lower than the year before due to capital expenditure on the buildings, in particular the refurbishment to Al Thuraya Tower, and an accounting liability relating to the cross currency profit rate swap, said the statement from ENBD REIT.

 

The company substantially reduced its operating, fund, and finance costs, negotiated revised lease terms, and increased the average length of its leases during an active 2022 financial year.

 

The investment trust also upgraded buildings and refinanced its debt during the period to prepare the portfolio, amid signs of stabilisation of the property market in the second half of the year, it stated.

 

ENBD REIT’s board of directors has proposed a final dividend of $5,000,000 ($0.02 per share) for the 6-month period ending March 31, 2022, a 13.6 percent increase from the same period of 2021. 

 

This brings the total dividend payable to shareholders for the year to $9,500,000, up 2.7% from previous year.

 

The total dividend return for the year is equivalent to 5.7% of NAV and 8.8% of the share price as at the March 31, 2022. Subject to shareholder approval of the dividend at the Annual General Meeting, the shares will trade ex-dividend on July 7, 2022, with the record date set as July 8, 2022 and the payment date on July 29.

 

Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said: "During 2021-22 we took many steps forward that strengthened ENBD REIT’s business and prepared it to prosper in the coming year and beyond. These included completion of a major upgrade of Al Thuraya Tower 1 in Dubai Media City, to create a modern and sophisticated office environment."

 

"Our flagship Edge building in Dubai Internet City received the prestigious LEED Gold sustainability certification," he stated.

 

These measures reflect our commitment to providing desirable facilities of the highest quality across our portfolio to attract tenants at favourable rents. We also increased our Weighted Average Unexpired Lease Term from 4.1 years to 4.3 years primarily through the renegotiation of the long term lease on the Uninest student accommodation building, added Taylor.-TradeArabia News Service