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ENBD Reit’s property portfolio valued at Dh1.7b

Institutional investor is looking to tap new financing options to help pick up ‘alternative asset classes’

Gulf News

Dubai: The ENBD Reit’s property portfolio is currently valued at Dh1.7 billion from investments into 11 properties, and 64 per cent of these being in office buildings.

“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,” Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said in a statement. “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. Gross yield on the portfolio is up slightly to 8.4 per 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.”

In June, the Reit made final payments to shareholders for the year ended March 31. During the period, total payments of $21.7 million (Dh79.8 million) were 7.2 per cent of NAV (net asset value).

“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,” said Taylor.

The Reit’s portfolio occupancy increased from 89 per cent in the previous quarter to 90 per cent in its first quarter. Gross yields also increased to 8.4 per cent, due to “successful leasing efforts mainly in the residential portfolio”.

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