A Shari’a-compliant real estate investment trust managed by Emirates NBD Asset Management has registred steady growth with its property portfolio value now worth $315 million.

The ENBD REIT, releasing the first net asset value (NAV) post listing, said it had remained stable due to strong rental income being off-set by the listing costs, and now stands at $297 million and $1.17 per share.

The real estate investment trust invests in predominantly income generating real estate, with the objective of providing investors with a regular source of income, by way of annual dividends of at least 80 per cent of net audited annual income, and potential capital appreciation.

The first dividend post listing is expected to be paid as at June 30 2017, said the Emirati fund manager.

The REIT aims to regularly distribute a semi-annual dividend with a target of achieving a return of seven per cent annually or more.

Tim Rose, the head of Real Estate, Emirates NBD Asset Management, said: "Occupancy rates in the portfolio currently stand at 85 per cent, having shown an overall increase of eight per cent over the last two quarters."

"Specific progress has been made in Burj Daman, the REITs second largest asset by value, where occupancy has risen by 14 per cent since January 2017 to 56 per cent. All key indicators point towards a strong performance in 2017," he added.

ENBD REIT pointed out that its offer was well over-subscribed with commitments from a mix of investors representing both financial institutions and family offices across the GCC.

The transaction was successful in balancing the holdings of existing and incoming investors. The final offer price of $1.11 per share.  

Anthony Taylor, the fund manager (for real estate) at Emirates NBD Asset Management said that the REIT's progress post IPO on Nasdaq Dubai had been very encouraging.

"Our team has been hard at work, aggressively seeking new acquisitions, to invest the capital raised from the IPO, for which we are focusing on occupied, income generating assets with long term leases," noted Taylor.

"We are pleased with the increase in occupancy rates across the portfolio and look forward to achieving greater success in the months and years to come," he added.-TradeArabia News Service