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NAV Quarterly Update Conference Callas at 31st March 2019
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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 31st March 2019 3
www.enbdreit.com NAV Quarterly Update Conference Call as at 31st March 2019
SnapshotAs at 31st March 2019
Portfolio property value
USD 450m
Offices: 64%
Residential: 18%
NAV
USD 270m
NAV per share
USD 1.08
LTV*
40%Occupancy
86%
Al Thuraya 1
Burj Daman
DHCC 49
DHCC 25
Binghatti Terraces
Arabian Oryx House
Remraam
WAULT 3.48 years
Uninest
Alternative: 18%
South View School
4
The Edge
* Loan-to-value on GAV
Souq Extra Retail Centre
Office: 1.80 yearsResidential: 0.83 years
Alternative: 12.14 years
Properties
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Payments to shareholders
NAV Quarterly Update Conference Call as at 31st March 2019 5
Payments made to shareholders relating to
FY ending 31st March 2018USD USD per share
% 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 NAV % of share price
Interim dividend* 6,868,836 0.0270 2.41% 3.60%
Final dividend** 5,399,754 0.0215 2.00% 3.81%
* As at 30th September 2019 NAV USD 1.12 and share price of USD 0.75**As at 31st March 2019 NAV USD 1.08 and share price of USD 0.57, subject to shareholder approval at the AGM
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Update on Share Buyback Programmeas at 31st March 2019
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3,250,000
1,151,340
0
450,000
900,000
1,350,000
1,800,000
2,250,000
2,700,000
3,150,000
3,600,000
4,050,000
4,500,000
Share Buyback Programme
Shares purchased Balance to buy
74% purchased
26% to buy
No
of
Shar
es
NAV Quarterly Update Conference Call as at 31st March 2019
Number of shares % completion
Shares purchased 3,250,000 73.84%
Balance to buy 1,151,340 26.16%
Number of shares purchased 3,250,000
Total price paid USD 1,934,636
Average price per share USD 0.595
Total value of cancelled shares at NAV
USD 3,510,000
Value addition to the existing shareholders
USD 1,575,364
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Capital structureas at 31st March 2019
40%
60%
Finance terms:
ENBD:
• 3mth EIBOR + 3.14%
Standard Chartered:
• 3mth LIBOR + 2.15%
DebtEquity
Equity Debt LTV
USD 270m USD 180m 40%
7
134
45
13
45
0
50
100
150
200
250
Lender
ENBD drawn SC drawn * ENBD undrawn SC undrawn
7% undrawn
40% drawn
Fully drawn
LTV 47%
USD
m
NAV Quarterly Update Conference Call as at 31st March 2019
Portfolio
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Portfolio overview and diversificationBy sector as % of portfolio
NAV Quarterly Update Conference Call as at 31st March 2019 9
Office 64%
Residential 18%
Alternative 18% Education 5%
Student accommodation 7%
Retail 6%
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Portfolio characteristics
NAV Quarterly Update Conference Call as at 31st March 2019
78%
100%
74%
88%
83%
73%
86%
88%
100%
100%
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 86% across the portfolio
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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
NAV Quarterly Update Conference Call as at 31st March 2019
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
Overall portfolio valuations
Office Residential Alternative Total
Despite challenging market conditionsU
SD m
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ENBD REIT’s Portfolio valuations
NAV Quarterly Update Conference Call as at 31st March 2019
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 31/12/18 31/3/19
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 31/12/18 31/3/19
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 31/12/18 31/3/19
Alternative valuations
Uninest South View School Souq Extra Retail Centre
USD
m
USD
m
USD
m
+1%
Flat
Flat
-4%
+3%
+40%
+9%
-29%
-23%
-15%-3%
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Asset snapshot
NAV Quarterly Update Conference Call as at 31st March 2019
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 76m 66m 31m 25m 288m 450m
% of portfolio value 20% 17% 15% 7% 5% 64% 100%
Net leasable area (Sq. Ft.)
208,565 92,208 87,618 80,808 71,034 540,233 1,293,017
Occupancy rate 78% 100% 74% 88% 83% 84% 86%
WAULT (years) 0.55 2.46 2.76 1.65 1.92 1.80 3.48
Gross rental yield 9.2% 7.7% 6.3% 10.2% 9.7% 8.3% 8.2%*
Office
* Annual contractual rental; excludes cash and debt (gross rental revenue / portfolio value)
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Asset snapshot
NAV Quarterly Update Conference Call as at 31st March 2019
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) 31m 33m 17m 82m 450m
% 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 73% 86% 88% 81% 86%
WAULT (years) 1.15 0.59 0.74 0.83 3.48
Gross rental yield 7.5% 8.2% 9.6% 8.2% 8.2%*
Residential
* Annual contractual rental; excludes cash and debt (gross rental revenue / portfolio value)
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Asset snapshot
NAV Quarterly Update Conference Call as at 31st March 2019
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 81m 450m
% 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% 100% 100% 100% 86%
WAULT (years) 5.16 2.65 34.36 12.14 3.48
Gross rental yield 7.8% 9.3% 6.4% 7.9% 8.2%*
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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Financials
www.enbdreit.com NAV Quarterly Update Conference Call as at 31st March 2019
Financial highlightsAs at 31st March 2019
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• Net rental income / FFO flat on previous year
• Gross income up 16% due to additional rental fromacquisitions
• Cash return on NAV stable, despite soft real estatemarket
• Unrealised valuation losses negatively impacted netincome
www.enbdreit.com NAV Quarterly Update Conference Call as at 31st March 2019
Financial performance12 months ending 31st March 2019
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USD
Gross income Net rental income / FFO
Net incomeExpenses Unrealised valuation gain/(loss)
38,171,997
(25,807,255)
12,364,742
(21,713,870)
(9,349,128)
32,983,478
(20,541,698)
12,441,780
559,247
13,001,027
(30,000,000)
(20,000,000)
(10,000,000)
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
FY 2018-2019
FY 2017-2018
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Breakdown of total expensesas at 31st March 2019
NAV Quarterly Update Conference Call as at 31st March 2019
Operating expenses, (8,240,625)
Finance cost, (11,367,334)
Fund expenses, (6,199,297)
USD USD FY 2019 FY 2018 Variance
Gross income 38,171,997 32,983,478 5,188,519
Total expenses (25,807,255) (20,541,698) (5,265,557)
FFONet Rental Income(excl. valuation)
12,364,742 12,441,780 (77,038)
Unrealised valuation gain/(loss)
(21,713,870) 559,247 (22,273,117)
Net income (9,349,128) 13,001,027 (22,350,155)• Increased finance costs due to higher profit rates and
additional drawdown
Appendix
www.enbdreit.com NAV Quarterly Update Conference Call as at 31st March 2019
Statement of financial position (USD)Appendix 1
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As at 31st Mar 2019 As at 31st Mar 2018
Investment properties 450,322,080 462,561,122
Cash and cash equivalent 15,754,585 18,693,403
Trade and other receivables 3,926,006 4,913,400
Total assets 470,002,671 486,167,925
Current liabilities
Payable for investments 2,153,945 2,041,928
Trade and other payables 13,905,318 14,742,856
Total current liabilities 16,059,263 16,784,784
Non-current liabilities
Mudaraba payable 178,564,658 168,254,833
Other 5,311,875 866,728
Total non-current liabilities 183,876,533 169,121,561
Total liabilities 199,935,796 185,906,345
Net Asset Value 270,066,875 300,261,580
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Statement of comprehensive income (USD)Appendix 2
FY 31st Mar 2019 FY 31st Mar 2018
Rental Income 38,040,334 32,434,112
Profit on Deposits 131,663 549,366
Total Income 38,171,997 32,983,478
Operating expenses (8,240,625) (7,483,319)
Operating income 29,931,372 25,500,159
Other expenses (2,076,276) (2,365,198)
Management fee (4,123,021) (4,167,172)
Fund expenses (6,199,297) (6,532,370)
Finance costs (11,367,334) (6,526,011)
FFO (Net rental income excluding valuation movement) 12,364,741 12,441,778
FFO Margin 32.39% 37.72%
Net Unrealised gain/loss (21,713,870) 559,247
Net income (9,349,129) 13,001,025 Net income Margin (24.49)% 39.42%
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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
NAV Quarterly Update Conference Call as at 31st March 2019 23
http://www.enbdreit.com/reit/contact-us/[email protected]:0097145093010mailto:[email protected]:0097145093016mailto:[email protected]:0097145093016mailto:[email protected]:0097145093015mailto:[email protected]:0097143699353
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Disclaimer
NAV Quarterly Update Conference Call as at 31st March 2019
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.
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Thank you
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