ENBD REIT sees boost in asset values in Q3 2022
The strong momentum in Dubai’s real estate market has driven the firm’s positive portfolio performance
ENBD REIT announced that its net asset value (NAV) for the third quarter of 2022 rose to US $173mn ($0.69 per share), up from $168mn the previous year.
A statement from ENBD REIT explained the growth reflects the continued positive momentum in the Dubai real estate market, and the benefits from effective asset management initiatives.
Overall, strong leasing activity resulted in occupancy rates reaching 85%, which together with an improved gross income, saw the property portfolio value increase by a further 0.5% or $1.8mn during the quarter, hitting $365mn as of 31st December 2022.
According to ENBD REIT, active asset management remained a priority and investments in maintenance and modernisation resulted in Al Thuraya breaching 50% occupancy during the quarter and Burj Daman – the REIT’s third-largest asset by value, in DIFC – reaching 83% occupancy, marking the highest occupancy since the asset’s acquisition.
In late August 2020, ENBD REIT said it had hedged a $108.9mn facility with Mashreq Bank and, in early April 2021, Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management said that upgrading and refurbishing existing assets will help improve occupancy levels in a challenging market space.
Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management stated, “We are pleased to see valuations continue to improve in line with the robust leasing activity and improving rental rates across the portfolio, as well as Dubai’s overall real estate market sentiment. The portfolio’s occupancy level of 85% achieved during the quarter is testament of the benefit from the investments in refurbishments made over the past 24 months with Al Thuraya in Dubai Media City and Burj Daman in DIFC showing particularly positive occupancy trends.”
ENBD REIT also said it grew its net rental income to $7.6mn for the nine months to 31 December 2022, a $2.1mn increase on the previous year, where reversals were required due to the Uninest lease restructuring in December 2021.
The Loan-to-Value (LTV) ratio remained steady at 54% with opportunities to exit non-core assets and bring down the debt exposure being actively assessed by the business’ management team, the firm concluded.
In mid May 2022, ENBD REIT said it completed a $6mn refurbishment of its Al Thuraya Tower 1 property.
