ENBD REIT, a sharia-compliant real estate investment trust managed by Emirates NBD Asset Management, has announced that its net asset value (NAV) for the third quarter of 2022 rose to $173 million ($0.69 per share), up from $168 million the previous year.
This reflects the continued positive momentum in the Dubai real estate market and the benefits from effective asset management initiatives, said a statement from ENBD REIT.
Overall, strong leasing activity resulted in occupancy rates reaching 85%, which together with an improved gross income, saw the property portfolio value increase by a further 0.5% or $1.8 million during the quarter to hit $365 million as of December 31, 2022, it stated.
According to the Emirati group, the active asset management remained a priority and investments in the maintenance and modernisation resulted in Al Thuraya breaching 50% occupancy during the quarter and Burj Daman, the REIT's third-largest asset by value in DIFC, reaching 83 percent occupancy, marking the highest occupancy since the asset’s acquisition.
Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said: "We are pleased to see valuations continue to improve in line with the robust leasing activity and improving rental rates across the portfolio as well as Dubai's overall real estate market sentiment."
"The portfolio’s occupancy level of 85 percent achieved during the quarter is testament of the benefit from the investments in refurbishments made over the past 24 months with Al Thuraya in Dubai Media City and Burj Daman in DIFC showing particularly positive occupancy trends," he added.
The ENBD REIT grew its net rental income to $7.6 million for the nine months to December 31, 2022, a $2.1 million increase on the previous year where reversals were required due to the Uninest lease restructuring in December 2021.
The Loan-to-Value (LTV) ratio remained steady at 54% with opportunities to exit non-core assets and bring down the debt exposure being actively assessed by the management team, it stated.
Melanie Fernandes, Senior Portfolio Manager at Emirates NBD Asset Management, said: "Active asset management and sustainability remained our main areas of focus during the quarter, and we were pleased to see The Edge successfully awarded Leed certification, the most widely-recognised green building rating system in the world, with other assets in the portfolio now underway, including South View School and Al Thuraya 1 which recently received the 'WELL Health' certification."
"These initiatives further increase the attractiveness of the assets to drive occupancy as well as other benefits such as the potential for lower financing costs overtime," she added.-TradeArabia News Service