ENBD REIT, the Shari'a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced its Net Asset Value (NAV) stood at $218.6 million or $0.87 per share, compared to $216 million for the previous quarter and $195 million the previous year, a respective 1.4% quarter-on-quarter (Q-o-Q) and 12.3% year-on-year (Y-o-Y) increase.

 

The value of ENBD REIT’s property portfolio grew to $395 million, up 0.4% Q-o-Q and 6.9% Y-o-Y, supported by proactive asset management and an agile leasing strategy across the portfolio. Occupancy was maintained at 95%, the highest level recorded by the REIT, up from 93% the previous year, reinforcing the strength of the leasing strategy and market demand for high-quality spaces. Strong performance was led by the office segment, with rental growth in line with market trends. On the residential side, near full occupancy was maintained, supported by ongoing lease optimization following agreements made in the immediate post-pandemic period.

 

Funds From Operations (FFO), which supports dividend distributions and excludes non-cash valuation movements, increased to $11.2 million from $7.8 million a year earlier, a 45% Y-o-Y increase.

 

Gross income rose to $37.5 million from $34.6 million in the prior year, while net income, including non-cash valuation gains, increased significantly to $33.7 million, up 61% Y-o-Y. This strong performance was driven by process efficiencies, resilient tenant demand, successful lease renewals, and strategic enhancements across the portfolio.

 

Operating expenses rose moderately by 3% Y-o-Y to $7 million, largely due to higher utilities and maintenance costs associated with increased occupancy. Fund expenses increased by 8%, in line with NAV-linked management fees. Finance costs declined by 8.1% Y-o-Y to $13.2 million, further supporting overall earnings growth.

 

Samir Kazi, Head of Real Estate at Emirates NBD Asset Management, commented: “We are delighted with this year’s results. The improvement in FFO, dividends and NAV, portrays the effectiveness of our strategic and asset management initiatives, supported by a favourable market environment.

 

"Tangible results have been realized, and our focus remains on delivering consistent, risk-adjusted returns to shareholders through proactive portfolio management and operational efficiency. As market conditions continue to evolve, we are well positioned to sustain this momentum and drive further value creation.”

 

ENBD REIT continues to focus on maintaining high occupancy levels, strengthening asset performance, and improving operational efficiency, all while leveraging favourable market conditions to deliver sustainable long-term value to shareholders.

 

ENBD REIT’s Board has proposed a final dividend of $5 million or $0.02 per share for the six-month period ending March 31, 2025. This brings the total dividend payable to shareholders for the financial year to $10 million, reflecting a 33.3% increase compared to the previous year. - TradeArabia News Service