nav quarterly update - enbd reit...final dividend (paid 13th june 2018) 3,281,777 usd 0.0129 1.09%...

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NAV Quarterly Update Conference Callas at 30th September 2018

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Asif Siddique

Chief Financial Officer

ENBD REIT

Anthony Taylor

Head of Real Estate

ENBD REIT

Presenting team

NAV Quarterly Update Conference Call as at 30th September 2018 3

www.enbdreit.com NAV Quarterly Update Conference Call as at 30th September 2018

SnapshotAs at 30th September 2018

Portfolio property value

USD 459mProperties

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Offices: 63%

Residential: 19%

Gross yield^

8.3%LTV*

38%Occupancy

90%

Al Thuraya 1

Burj Daman

DHCC 49

DHCC 25

Binghatti Terraces

Arabian Oryx House

Remraam

WAULT 3.75 years

Uninest

Alternative: 18%

South View School

4

The Edge

* Loan-to-value on GAV ^ on property portfolio (gross rental revenue / portfolio value)

Souq Extra Retail Centre

Office: 2.18 years

Residential: 0.68 years

Alternative: 12.87 years


Financial highlightsH1 2018/2019

5

• Net rental income / FFO up 42% on H1 2017/2018

• Gross income up 28% due to acquisitions and highoccupancies

• Cash return on NAV improving

• Unrealised valuation losses impacting net income


Financial performanceH1 2018/2019

18,990,756

(12,033,554)

6,957,203

(10,418,553)

(3,461,350)

14,830,073

(9,938,096)

4,891,977

2,679,041

7,571,018

(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

Sep-18

Sep-17

6

USD

Gross income Net rental income / FFO

Net incomeExpenses Unrealised valuation gain/(loss)

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Proposed share capital reduction


As at 30th SeptemberPre share capital reduction

Total assets USD 479m

Total liabilities USD 194m

Total equity (NAV) USD 285m

Share capital USD 288m

Retained earnings (USD 3m)

No dividend payable

NAV per share cum dividend

USD 1.12

NAV per share ex dividend

USD 1.12

As at 30th SeptemberPost share capital reduction





Retained earnings USD 81m

Proposed dividend payable USD 0.027 per share


USD 1.12


USD 1.09

Post dividend payment





Retained earnings USD 74m

Dividend paid USD 0.027 per share


USD 1.12


USD 1.09

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Payments to shareholders


Payments made to shareholders relating to

FY ending 31st March 2018USD

% of NAVUSD 1.18

% of share priceUSD 0.99

Interim dividend (paid 12th July

2017)9,718,131 USD 0.0382 3.24% 3.86%

Final dividend (paid 13th June 2018) 3,281,777 USD 0.0129 1.09% 1.30%

Return of capital (paid 13th June

2018)8,725,966 USD 0.0343 2.91% 3.46%

Total paid to shareholders 21,725,874 USD 0.0854 7.24% 8.63%

Payments made to shareholders relating to

FY ending 31st March 2019USD USD per share

% of NAVUSD 1.12

% of share priceUSD 0.75

Proposed interim dividend*

6,868,836 0.0270 2.41% 3.60%

* To be paid Dec 2018, subject to the approval of the Reduction of Capital at the GM set for 27th November 2018

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NAV highlights

NAV Quarterly Update Conference Call as at 30th September 2018

30th September 2018

Property Portfolio Value USD 459m

Cash USD 15m

Gross Asset Value (GAV) USD 462m

NAV per share USD 1.12

Net Asset Value (NAV) USD 285m

Loan-to-Value (LTV) 38%

Gross rental yield on NAV 13.21%

Net yield on NAV˄ 4.89%

Number of shares in issue 254,401,340

˄ Financial YTD annualized

9


Capital structureas at 30th September 2018

38%

62%

Existing finance terms

• Profit only• Matures 2021• 3-month EIBOR + 3.0%• Repayment:

• 10% end of year 4 (Nov 2020)• 90% end of year 5 (Nov 2021)

Further financing available

• Available drawdown remaining on existing facility: USD 13m

• New facility to be sourced from the market

• Target LTV of 45%

DebtEquity

Equity Debt LTV

USD 285m USD 177m 38%

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Capital structurePost 30th September 2018

New finance facility signed with Standard Chartered

• USD 75m plus additional USD 25m accordion option• USD 45m to repay ENBD AWAI facility• USD 30m balance for acquisitions (earmarked for Souq

Extra Phase 2) • Commodity Murabaha• 3 year term• Profit only• 3mth LIBOR + 2.15% = 4.75% • (Current facility with Emirates NBD is 3mth EIBOR + 3.14%

= 5.86%)

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114

43

13

37

0

50

100

150

200

250

Lender

ENBD drawn SC drawn ENBD undrawn SC undrawn

6% undrawn

38% drawn

Fully drawn

LTV 44%

USD

m

Portfolio

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Portfolio overview and diversificationBy sector as % of portfolio


Office 63%

Residential 19%

Alternative 18% Education 5%

Student accommodation 7%

Retail 5%

www.enbdreit.com NAV Quarterly Update Conference Call as at 30th September 2018 14

Residential 20%

Alternative 16%

Diversified tenant mix in the office segment

ICT, 33%

Consultancy & Legal , 27%

Healthcare , 19%

Media , 11%

Sales , 5%

Retail-F&B, 4%

Logistics, 1%Retail , 1%

Office portfolio: 63% of the

overall holdings

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Portfolio characteristics


84%

100%

74%

86%

90%

87%

97%

90%

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 90% across the portfolio

15

Offices

63%

Residential

19%

Alternative

18%

Target

50-60%

Target

20-25%

Target

25-35%

www.enbdreit.com 16

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

Overall portfolio valuations

Office Residential Alternative Total

Despite challenging market conditionsU

SD m

www.enbdreit.com 17

ENBD REIT’s Portfolio has remained strong


20

40

60

80

100

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

Office valuations

Al Thuraya 1 Burj Daman DHCC49 DHCC25 The Edge

15

25

35

45

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

Residential valuations

Binghatti Terraces Arabian Oryx House Remraam

10

15

20

25

30

35

40

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

Alternative valuations

Uninest South View School Souq Extra Retail Centre

USD

m

USD

m

USD

m

+1%

+1%

Flat

-4%

+3%

+39%

+9%

-17%

-13%

-13%Flat

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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) 90m 77m 68m 31m 25m 291m 459m

% of portfolio value 20% 17% 15% 7% 5% 63% 100%

Net leasable area (Sq. Ft.)

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

Occupancy rate 84% 100% 74% 86% 90% 87% 90%

WAULT (years) 0.78 2.96 3.25 1.94 2.26 2.18 3.75

Gross rental yield 9.2% 7.7% 6.1% 9.6% 10.2% 8.2% 8.3%*

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) 35m 34m 20m 89m 459m

% of portfolio value 8% 7% 4% 19% 100%

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

Occupancy rate 87% 97% 90% 91% 90%

WAULT (years) 0.83 0.60 0.53 0.68 3.75

Gross rental yield 8.8% 9.1% 8.4% 8.8% 8.3%*

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~ 21m 80m 459m

% of portfolio value 8% 5% 5% 18% 100%

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

Occupancy rate 100% 99% 100% 100% 90%

WAULT (years) 5.66 3.68 34.86 12.87 3.75

Gross rental yield 7.8% 9.2% 9.0% 7.9% 8.3%*

Alternative

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

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New School Opening


South View School

Highlights• South View School build successfully completed on schedule• School doors opened to students on 2nd Sep 2018 as planned, with all

necessary Dubai Municipality and KHDA approvals• 30 British-qualified teachers have already joined the school• South View School will teach classes up to year 7• Total construction cost of USD 15 million• Property currently valued at USD 21m, representing a valuation gain of 39%• The total ground floor area of the school is 132,000 sq. ft. on a generous plot

area covering 183,504 sq. ft.

Transaction highlights• The deal marks ENBD REIT’s first acquisition of an education asset. South

View School, is operated by Interstar Education, part of Interstar AdvisoryServices, which currently runs the successful and well-established VictoryHeights Primary School in Dubai Sports City, which has just been awarded‘Very Good’ in the 2017/18 KHDA school rankings.

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Financials

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Breakdown of total expensesas at 30th September 2018


Operating expenses, (3,686,136)

Finance cost, (4,930,135)

Fund expenses, (3,417,283)

USD USD H1 Sep-18 H1 Sep-17 Variance

Gross income 18,990,756 14,830,073 4,160,683

Total expenses (12,033,554) (9,938,096) (2,095,457)

FFONet Rental Income(excl. valuation)

6,957,203 4,891,977 2,065,226

Unrealised valuation gain/(loss)

(10,418,553) 2,679,041 (13,097,594)

Net income (3,461,350) 7,571,018 (11,032,368)

• Increased operating expenses due to assets acquired

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


Statement of financial position (USD)as at 30th September 2018

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

Investment properties 458,730,200 462,561,122

Cash and cash equivalent 15,301,230 18,693,403

Trade and other receivables 5,190,595 4,913,400

Total assets 479,222,025 486,167,925

Current liabilities

Trade and other payables 16,974,226 16,784,784

Total current liabilities 16,974,226 16,784,784

Non-current liabilities

Mudaraba payable 177,484,345 168,254,833

Payable for investments - 866,728

Total non-current liabilities 177,484,345 169,121,561

Total liabilities 194,458,571 185,906,345

Net Asset Value 284,763,454 300,261,580


Period ending H1 30th Sep 2018 H1 30th Sep 2017 FY 31st Mar 2018

Rental income 18,930,900 14,320,414 32,434,112

Profit on Islamic Deposits 59,856 509,660 549,366

Net unrealised gain (10,418,553) 2,679,041 559,247

Total income 8,572,203 17,509,115 33,542,725

Operating expenses (3,686,136) (3,457,563) (7,483,319)

Operating income 4,886,067 14,051,552 26,059,406

Other expenses (1,237,732) (1,507,097) (2,365,198)

Management fee (2,179,551) (1,882,682) (4,167,172)

Fund expenses (3,417,283) (3,389,779) (6,532,370)

Finance Costs (4,930,135) (3,090,755) (6,526,011)

Net income (3,461,351) 7,571,018 13,001,025

Statement of comprehensive income (USD)for period ending 30th September 2018

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

Investor RelationsJulia [email protected]+971 (0)4 509 3016

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

ENBD REIT General Meeting 27th November 2018 26

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

tel:0097145093010

mailto:[email protected]

tel:0097145093016


tel:0097145093016


tel:0097145093016


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) Limited (“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.

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nav quarterly update - enbd reit...final dividend (paid 13th june 2018) 3,281,777 usd 0.0129 1.09%...

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