ENBD REIT (CEIC), a shari'a-compliant real estate investment trust based in the UAE, said its net asset value (NAV) for the period ended June 30, surged to Dh1.1 billion ($289 million), around $1.14 per share, following the dividend and return of capital payments made last month.

This equates to a quarterly return of 0.29 per cent due to net rental income being offset by slight valuation decreases. The total property portfolio value stands at $463 million, with diverse holdings covering 11 properties across the office, residential and alternative real estate sectors, stated the real estate investment trust managed by Emirates NBD Asset Management Limited.

Following a series of acquisitions that led to diversification of ENBD REIT’s portfolio in 2017, current sector allocation stands at 64 per cent offices, 20 per cent residential and 16 per cent alternative - including schools, student accommodation and retail.

Portfolio occupancy increased from 89 per cent in the previous quarter to reach 90 per cent in the first quarter. Gross yield also increased to reach 8.4 per cent, due to successful leasing efforts mainly in the residential portfolio.

In June, ENBD REIT made final payments to shareholders for the year ended March 31, 2018, it stated.

During the full year period, total payments of $21.7 million were 7.2 per cent of NAV and 8.6 per cent of the share price, or $0.0854 per share.

These payments included an interim dividend of $0.0382 per share and a final dividend of $0.0129 per share, as well as a return of capital of $0.0343 per share. The reduced NAV, down from $1.18 per share in the previous quarter, is due to cash payments made to shareholders in the form of the final dividend and return of capital in June.

After recommendation by the board of directors, the return of capital was approved by the shareholders at ENBD REIT’s annual general meeting last month, in recognition of adjustments made to the dividend payment cycle in December 2017, to be aligned with the REIT’s financial year.

Anthony Taylor, the head of real estate at Emirates NBD Asset Management, said: "While the local real estate market remains challenging – and this has put pressure on valuations in the portfolio – we have been successful in both protecting and improving income."

"Gross yield from the portfolio has increased, thanks to the efforts of our asset management team, who have been particularly successful in leasing our residential assets," noted Taylor.

"Gross yield on the portfolio is up slightly to 8.4 pere cent, compared with 8.3 per cent in the previous quarter, with net yield from rental income at 4.5 per cent on an annualised basis," stated the top official.

"Looking ahead, we are exploring new financing options that will facilitate further expansion of our portfolio into alternative asset classes - mitigating risks prevailing in local residential and office markets," he added.-TradeArabia News Service