Friday, November 25, 2022 – 3:55 PM
DUBAI, 25th November, 2020 (WAM) — Emirates NBD REIT, a Sharia-compliant real estate investment fund managed by Emirates NBD Asset Management Limited, announced its net asset value as of September 30, 2022, amounting to $172 million.
The value of the company’s real estate portfolio increased by $4.7 million sequentially to $362 million, driven by a portfolio-level improvement in occupancy rates that reached 84% compared to 75% in the same period last year, thanks to continued momentum in Leasing activity that comes in conjunction with the strong growth in the real estate market.
In this regard, Anthony Taylor, Head of the Real Estate Department at Emirates NBD Asset Management, said: These results complement the positive path that began in the first quarter of the year. Occupancy rates and gross income continued to rise, driven by an upward trajectory in portfolio valuations across all sectors.
He added: “With regard to the booming real estate market in Dubai, we will maintain a prudent risk management strategy and prudent capital management approach to ensure that we continue to provide reliable returns to our shareholders, especially with higher interest rates which will be a positive support for our business performance in the coming quarters. We will also look at any opportunities A valuable exit to ensure the optimal allocation of properties in our portfolio.”
Melanie Fernandez, Senior Portfolio Manager at ENBD REIT, said: “Our focus on strategic asset upgrades and renovations has proven to be a very successful policy, as these upgrades have contributed to enhancing the attractiveness of the company’s buildings, which has led to higher occupancy rates across the portfolio. As a result, the occupancy rate of Thuraya Tower 1, our largest refurbishment project to date, has increased by more than 50%, with leasing activity picking up after a comprehensive renovation of the ground floor lobby, cloakroom, changing rooms and podium facilities along with an upgrade to the elevator system.
She added, “Our approach of combining our effective asset management strategy and strong focus on sustainable real estate to create comfortable, modern and sophisticated spaces for our tenants has positioned us well to take advantage of the continuous improvements in Dubai’s real estate market.”
Relying on a prudent approach to maintain resilience in a rising interest rate environment, the Board of Directors team has recommended an interim dividend of $4.5 million or $0.018 per share, in line with the first half of last year and derived from net profit and rental income. The shares will be traded ex-dividend on December 6, 2022, with the payment date set on December 21, 2022.
Zakaria Mohieldin / Ramy Samih