ENBD REIT (CEIC), the shari’s compliant real estate investment trust headed by Emirates NBD Asset Management, has informed that its net asset value as of December 31, 2020, has $184 million ($0.74 per share) in comparison to $198 million in September and $246 million the previous year.
ENBD REIT highlighted that its value of the property portfolio has been brought down to $366 million (from $377 million in September 2020, and $429 million in December 2019). The fall in NAV has emerged primarily from market valuation pressure. It added.
While the balance of advantages valuations in the property portfolio has endured static. Pressure has been operated by capital work for renewal at Al Thuraya Tower 1 in Dubai Media City; in progress discussions around non-payment of rent at the Uninest student living to build in Dubailand; and pressure on residential rental rates due to competitive market conditions.
Blended portfolio occupancy remnant stable at 75% in comparison to 76% for the last quarter. The Weighted Average Unexpired Lease Term (Wault) for the portfolio has remained above 4 years (at 4.01, compared with 4.05 in September 2020 and 3.37 in December 2019), due to dynamic leasing efforts and resumptions by major tenants.
ENBD REIT’s management has concentrated on fixing longer-term leases for all fixing and new leases, mainly in the office portfolio.
Anthony Taylor, the head of real estate at Emirates NBD Asset Management, said: “As we continue to face pressure on valuations, we are taking an active approach to both leasing and asset management, in order to uphold healthy occupancy levels and make our properties as attractive as possible to current and prospective tenants.“
“Subdivision works at Burj Daman in DIFC have been completed to create smaller, more leasable units on the 10th and 14th floors, with furnished options also available to new tenants, and active leasing set to kick-off in February. Meanwhile, our major refurbishment project at Al Thuraya Tower 1 is underway, with the design phase finalized,” stated Taylor.