Dubai: ENBD Reit said on Tuesday it plans to buy back 4.4 million shares and has allocated up to $3.5 million (Dh12.85 million). The price will be no higher than 10 per cent of the previous day’s volume-weighted average price.

“The initiative aims to positively impact the liquidity of ENBD Reit’s stock in a market affected by limited trading volumes, while offering a level of protection to shareholders from disproportionate price movements,” ENBD Reit said in statement.

The programme is effective from February 21 up to September 30 and the board reserves the right to suspend or terminate the programme before that date.

The buy-back programme will be kept on hold during ENBD Reit’s closed period, from April 1 up to the announcement of its full-year results.

ENBD Reit will conduct the programme in accordance with the terms of the general authority granted to the board by shareholders at its Annual General Meeting (AGM) on June 3, and relevant approvals obtained from the regulator.

Anthony Taylor, head of Real Estate at Emirates NBD Asset Management, said: “The purpose of the buy-back programme is to realise value for all shareholders by repurchasing shares currently trading at a significant discount to current market valuations of the underlying assets.”

The total property portfolio value stands at $456 million ($1.7 billion), with diverse holdings covering 11 properties across the office, residential and alternative real estate sectors.