quarterly update - enbd reit · ** final dividend for fye 31st march 2019, approved by shareholders...

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Quarterly Updateas at 30th September 2019

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Julia Ward-Osseiran

Investor Relations Officer

ENBD REIT

Asif Siddique

Chief Financial Officer

ENBD REIT

Anthony Taylor

Head of Real Estate

ENBD REIT

Presenting team

ENBD REIT Quarterly Update as at 30th September 2019 3

www.enbdreit.com ENBD REIT Quarterly Update as at 30th September 2019

SnapshotAs at 30th September 2019

Portfolio property value

USD 435m

Offices: 64%

Residential: 18%

NAV

USD 254m**

NAV per share

USD 1.02**

LTV*

42%Occupancy

80%

Al Thuraya 1

Burj Daman

DHCC 49

DHCC 25

Binghatti Terraces

Arabian Oryx House

Remraam

WAULT 3.47 years

Uninest

Alternative: 18%

South View School

4

The Edge

• Loan-to-value on GAV• **NAV stated cum-dividend

Souq Extra Retail Centre

Office: 1.82 years

Residential: 0.72 years

Alternative: 11.73 years

Properties

11

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Post-listing performance

5

DateProperty

portfolio valueNAV NAV per share

Dividend pershare

Dividend % on NAV*

Dividend % on Share Price

Share price

30th Sep 2019 USD 435m USD 254m* USD 1.02* USD 0.0196 1.93% 3.64% USD 0.54

30th Jun 2019 USD 437m USD 255m* USD 1.02* - - - USD 0.52

31st Mar 2019 USD 450m USD 270m~ USD 1.08~ USD 0.0215** 2.00% 3.81% USD 0.57

31st Dec 2018 USD 456m USD 284m USD 1.11 - - - USD 0.64

30th Sep 2018 USD 459m USD 285m USD 1.12 USD 0.0270 2.41% 3.60% USD 0.75

30th Jun 2018 USD 463m USD 289m ͌ USD 1.14 ͌ - - - USD 0.81

31st Mar 2018 USD 463m USD 300m USD 1.18 USD 0.0129 1.09% 1.30% USD 0.99

31st Dec 2017 USD 460m USD 300m USD 1.18 - - - USD 0.99

30th Sep 2017 USD 353m USD 295m~ USD 1.16~ - - - USD 1.00

30th Jun 2017 USD 352m USD 302m USD 1.18 USD 0.0382 3.24% 3.86% USD 1.08

31st Mar 2017 USD 315m USD 297m USD 1.17 - - - USD 1.17* NAV stated cum-dividend** Final dividend for FYE 31st March 2019, approved by shareholders on 24th June 2019 and subsequently paid on 15th July 2019~ Dividend payment made in this period͌ Dividend payment and return of capital made in this period (totaling USD 12,007,743 or USD 0.0472 per share)

ENBD REIT Quarterly Update as at 30th September 2019

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Intention to restructure and review strategy


Disclosed on NASDAQ Dubai on Sunday 8th December 2019

NOTICE OF INTENTION TO RESTRUCTURE AND REVIEW STRATEGY

ENBD REIT (CEIC) PLC (“ENBD REIT”), the Shari’a compliant real estate investment trust managed by Emirates NBD Asset

Management Limited, announces that its Board of Directors have concluded a comprehensive review of various strategic

alternatives to maximise long-term value for shareholders.

ENBD REIT confirms that, in light of this review, the Board has decided to proceed with formalising a restructuring and to become

a privately held REIT, subject to shareholders’ and regulatory approvals. ENBD REIT is also considering the deposit of ENBD REIT

shares in Nasdaq Dubai CSD, facilitating share transfers upon becoming a privately held REIT.

ENBD REIT is in discussions with the regulator, the Dubai Financial Services Authority (“DFSA”) and other stakeholders. Further

details of progress with the restructuring, delisting and possible future share transfer mechanisms will be submitted for

shareholders’ approval at an upcoming extraordinary general meeting. This will be announced on or before 23rd January 2020.

www.enbdreit.com 7

4,401,340

-

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

Share Buyback Programme

Shares purchased

100% purchased

No

of

Shar

es

Number of shares % completion

Shares purchased 4,401,340 100%

Balance to buy - 0%

Number of shares purchased 4,401,340

Total price paid USD 2,558,614

Average price per share USD 0.581

Total value of cancelled shares at NAV

USD 4,663,576

Value addition to the existing shareholders

USD 2,104,962

Share buyback programme fully executed on 9th September 2019

Update on share buy-back programme


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NAV highlights


30th September 2019

Property Portfolio Value USD 435m

Cash USD 11m

Prepayments & Accruals USD (9m)

Gross Asset Value (GAV) USD 436m

NAV per share USD 1.02

Net Asset Value (NAV) USD 254m

Loan-to-Value (LTV) 42%

Gross rental yield on NAV 14.11%

Net Rental yield on NAV˄ 3.93%

Number of shares in issue 250,000,000

˄ Financial YTD annualized

8

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Capital structureas at 30th September 2019

41%

59%

Finance terms:

Standard Chartered:

• 3mth LIBOR + 2.15%

Mashreq Bank*:

• 3mth EIBOR + 2.65%DebtEquity

Equity Debt LTV

USD 254m USD 182m 42%

9ENBD REIT Quarterly Update as at 30th September 2019

0

50

100

150

200

250

300

350

Lender

SC drawn Mashreq drawn SC undrawn Mashreq undrawn

Fully drawn

LTV 51%USD

m

• Mashreq Bank Facility executed on the 30th June 2019;

Portfolio

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Portfolio overview and diversificationBy sector as % of portfolio


Office 64%

Residential 18%

Alternative 18% Education 5%

Student accommodation 7%

Retail 6%

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Portfolio overview


Al Thuraya 1, 19%

The Edge, 17%

Burj Daman, 15%DHCC 49, 7%

DHCC 25, 6%

Arabian Oryx House, 7%

Binghatti Terraces, 7%

Remraam, 4%

Uninest, 7%

Souq Extra, 6%

South View School , 5%

12

Al Thuraya 1, 16%

The Edge, 18%

Burj Daman, 14%DHCC 49, 9%

DHCC 25, 6%

Arabian Oryx House, 8%

Binghatti Terraces, 7%

Remraam, 4%

Uninest, 8%

Souq Extra, 7%

South View School , 4%

Asset value as % of portfolio Gross Rental Income as % of portfolio

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Portfolio characteristics


51%

100%

77%

73%

67%

87%

73%

82%

100%

99%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Al Thuraya 1

The Edge

Burj Daman

DHCC49

DHCC25

Binghatti Terraces

Arabian Oryx House

Remraam

Uninest

Souq Extra

South View School

Strong occupancy of 80% across the portfolio

13

Offices

64%

Residential

18%

Alternative

18%

Target

50-60%

Target

15-20%

Target

25-35%

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ENBD REIT’s portfolio has remained strong


0

50

100

150

200

250

300

350

400

450

500

31/3/17 30/6/17 30/9/17 31/12/17 31/3/18 30/6/18 30/9/18 31/12/18 31/3/19 30/6/19 30/09/19

Overall portfolio valuations

Office Residential Alternative Total

Despite challenging market conditionsU

SD m

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ENBD REIT’s portfolio valuations coming under pressure

20

40

60

80

100

Office valuations

Al Thuraya 1 Burj Daman DHCC49 DHCC25 The Edge

15

25

35

45

Residential valuations

Binghatti Terraces Arabian Oryx House Remraam

10

15

20

25

30

35

40

Alternative valuations

Uninest South View School Souq Extra Retail Centre

USD

m

USD

m

USD

m

-7%

Flat

-8%-3%

+3%

+43%

+9%

-33%

-27%

-20%-5%

ENBD REIT Investor Presentation as at 30th September 2019 ENBD REIT Quarterly Update as at 30th September 2019

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Asset snapshot

Al Thuraya 1Media City

Acquired: Nov 2006

The EdgeDubai Internet

CityAcquired: Oct

2017

Burj DamanDIFC

Acquired: Jun 2015

DHCC 49Healthcare CityAcquired: Apr

2007

DHCC 25Healthcare City

Acquired: Jul 2007

Overall Office

Portfolio

Overall Portfolio

Market value (USD) 83m 76m 65m 30m 24m 278m 435m

% of portfolio value 19% 18% 15% 7% 6% 64% 100%

Net leasable area (Sq. Ft.)

208,565 92,208 87,618 80,808 71,034 540,233 1,293,017

Occupancy rate 51% 100% 77% 73% 67% 74% 80%

WAULT (years) 0.76 1.96 3.23 1.24 2.04 1.82 3.47

Gross rental yield 6.6% 7.9% 7.2% 10.0% 8.1% 7.6% 7.7%*

Office

* Annual contractual rental; excludes cash and debt (gross rental revenue / portfolio value)


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Asset snapshot

Binghatti TerracesSilicon Oasis

Acquired: May 2016

Arabian Oryx HouseBarsha Heights

Acquired: Oct 2014

RemraamDubailand

Acquired: Sep 2015

Overall Residential Portfolio

Overall Portfolio

Market value (USD) 29m 31m 16m 76m 435m

% of portfolio value 7% 7% 4% 18% 100%

Net leasable area (Sq. Ft.) 178,907 133,432 112,154 424,493 1,293,017

Occupancy rate 87% 73% 82% 80% 80%

WAULT (years) 0.94 0.66 0.44 0.72 3.47

Gross rental yield 9.1% 7.1% 9.0% 8.2% 7.7%*

Residential

* Annual contractual rental; excludes cash and debt (gross rental revenue / portfolio value)


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Asset snapshot

UninestDubailand

Acquired: May 2017

Souq Extra Retail Centre

Acquired: Dec 2017

South View School

RemraamAcquired: Aug

2017

Overall Alternative

PortfolioOverall Portfolio

Market value (USD) 34m 25m~ 22m 81m 435m

% of portfolio value 7% 6% 5% 18% 100%

Net leasable area (Sq. Ft.) 160,264 36,027 132,000 328,291 1,293,017

Occupancy rate 100% 97% 100% 99% 80%

WAULT (years) 4.66 2.36 33.86 11.73 3.47

Gross rental yield 7.8% 8.9% 6.4% 7.8% 7.7%*

Alternative

~ Further commitment of USD 35m for Phase 2* Annual contractual rental; excludes cash and debt (gross rental revenue / portfolio value)


Financials


Financial summaryAs at 30th September 2019

20

• Net rental income / FFO 7.8% down from previous 6months period

• Gross income 6.6% down from previous 6 monthsperiod

• Cash return on NAV stable, despite soft real estatemarket

• Unrealised valuation losses negatively impacted netincome


Financial performanceApril – September 2019 (6 months)

21

USD

Gross income Net rental income / FFO

Net incomeExpenses Unrealised valuation gain/(loss)

17,917,052

(12,930,153)

4,986,899

(15,004,012)

(10,017,113)

18,990,756

(12,033,553)

6,957,203

(10,418,553)

(3,461,350)

(20,000,000)

(15,000,000)

(10,000,000)

(5,000,000)

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Apr-Sep2019-2020

Apr-Sep2018-2019

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Breakdown of total expensesas at 30th September 2019


Operating expenses, (3,817,570)

Finance cost, (6,015,057)

Fund expenses, (3,097,526)

USD USD Apr-Sep 2019-2020

Apr-Sep 2018-2019

Variance

Gross income 17,917,052 18,990,756 (1,073,704)

Total expenses (12,930,153) (12,033,553) (896,600)

FFONet Rental Income(excl. valuation)

4,986,899 6,957,203 (632,833)

Unrealised valuation gain/(loss)

(15,004,012) (10,418,553) (4,585,459)

Net income (10,017,113) (3,461,350) (6,555,763)

• Increased finance costs due to higher profit rates and additional drawdown

• Refinancing expected to bring finance costs down in the future

Appendix

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FinancialsFinancial performance - statement of financial position (USD)

24

As at 30th Sep 2019 As at 30th Sep 2018 As at 31st Mar 2019

Investment properties 432,468,068 458,730,200 450,322,080

Right of use assets 15,389,206 - -

Cash and cash equivalent 10,913,877 15,301,230 15,754,585

Trade and other receivables 6,889,420 5,190,595 3,926,006

Total assets 465,660,571 479,222,025 470,002,671

Current liabilities

Payable for investments 1,361,285 4,491,523 2,153,945

Trade and other payables 13,789,063 12,482,703 13,905,318

Total current liabilities 15,150,348 16,974,226 16,059,263

Non-current liabilities

Mudaraba payable 179,175,015 177,484,345 178,564,658

Other 2,652,958 - 5,311,875

Lease liabilities 14,650,890 - -

Total non-current liabilities 196,478,863 177,484,345 183,876,533

Total liabilities 211,629,211 194,458,571 199,935,796

Net Asset Value 254,031,360 284,763,454 270,066,875 ENBD REIT Quarterly Update as at 30th September 2019

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FinancialsFinancial performance - statement of comprehensive income (USD)

6mthsApr-Sep 2019

6mthsApr-Sep 2018

Full Year31st Mar 2019

Rental Income 17,871,379 18,930,900 38,040,334 Profit on Deposits 45,673 59,856 131,663

Total Income 17,917,052 18,990,756 38,171,997

Operating expenses (3,817,570) (3,686,136) (8,240,625)Operating income 14,099,482 15,304,620 29,931,372

Other expenses (949,177) (1,237,732) (2,076,276)Management fee (2,148,349) (2,179,551) (4,123,021)Fund expenses (3,097,526) (3,417,283) (6,199,297)

Finance costs (6,015,057) (4,930,135) (11,367,334)

FFO (Net rental income excluding valuation movement) 4,986,899 6,957,202 12,364,741

FFO Margin 27.83% 36.63% 32.39%

Net Unrealised gain/loss (15,004,011) (10,418,553) (21,713,870)

Net income(10,017,112) (3,461,351) (9,349,129)

Net income Margin (55.91)% (18.23)% (24.49)%


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General [email protected]+971 (0)4 509 3010

Investor RelationsJulia [email protected]+971 (0)4 509 3010

Company SecretaryJean Kenny [email protected]+971 (0)4 428 9221

Tenants/LeasingMelanie [email protected]+971 (0)4 509 3029

MediaGeorge [email protected]+971 (0)4 369 9353

Contact us


http://www.enbdreit.com/reit/contact-us/[email protected]

tel:0097145093010

mailto:[email protected]


tel:0097145093016


tel:0097145093015


tel:0097143699353

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Disclaimer


The information, estimates and opinions (“Information”) expressed herein are made in good faith and are based on sources believed to be reliable, but norepresentation or warranty, express or implied, is made as to the accuracy, completeness or correctness of the Information. The Information is not intended to serve asinvestment advice and should not be used as a substitute for independent judgement and advice. This Information has been obtained from or is based upon sourcesbelieved to be reliable, and is believed to be fair and not misleading. The Information contained in this presentation is subject to change without notice. None of ENBDREIT (CEIC) PLC (“ENBD REIT” or the “Fund”), Emirates NBD Asset Management Limited (“Emirates NBD AM”), Emirates NBD Group nor any of their respectivedirectors, employees or agents (the “ENBD Parties”) give any representation or warranty as to the reliability, accuracy or completeness of the Information, nor, to theextent permitted by relevant laws and regulations, do they accept any responsibility or liability arising in any way (including by negligence) for errors in, or omissionsfrom, the Information. None of the ENBD Parties give any undertaking to provide additional information to update this material, or to correct any inaccuracies whichmay become apparent. This document is provided for informational and illustrative purposes only. It does not constitute a solicitation, recommendation or offer to buyor sell any shares or other securities of the Fund, any specific investment product or to subscribe to any specific investment management or advisory service.Prospective investors in ENBD REIT should obtain and carefully read the Fund’s most recent prospectus and supplement, if any, as well as seek separate, independentfinancial advice prior to making an investment in ENBD REIT in order to fully assess the suitability, lawfulness and risks involved.

This presentation is not for distribution to the general public but for intended recipients only and may not be published, circulated, reproduced or distributed in wholeor part to any other person without the written consent of Emirates NBD AM. This presentation is directed to persons authorised to invest in ENBD REIT and residing injurisdictions where the Fund is authorised for distribution or where no such authorisation is required. Investment in ENBD REIT is intended only for investors whounderstand the risks involved in investing in the Fund and can withstand any potential loss therefrom. Neither ENBD REIT’s historical performance nor that of itspredecessor fund, Emirates Real Estate Fund Limited, is indicative of the future performance of the Fund and should not be used as a proxy for the future or likelyperformance of the Fund. The value of the investment in and the income from ENBD REIT can fall as well as rise as the Fund is subject to investment risks, including thepossible loss of the whole of the principal amount invested. The Information does not have any regard to the specific investment objectives, financial situation or theparticular needs of any person.

All Shari’a compliant products and services are approved by the Shari’a Supervisory Board of Emirates NBD AM.

This Information has been prepared by Emirates NBD AM for ENBD REIT. Emirates NBD AM and ENBD REIT are regulated by the Dubai Financial Services Authority.

27

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Thank you

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quarterly update - enbd reit · ** final dividend for fye 31st march 2019, approved by shareholders...

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