Enbd Reit (ceic) Plc · NASDAQDUBAI:ENBDREIT
Enbd Reit (ceic) — Investor Presentation (September 2019)
44 slides from Enbd Reit (ceic)'s investor presentation, Sep 30, 2019
Slide 1: ENBD REIT
ENBD Managed by Emirates NBD Asset Management ENBD Managed by Emirates NBD Asset Management
Slide 2: Investor Presentation as at 30th September 2019
Investor Presentation as at 30th September 2019 www.enbdreit.com
Slide 3: Presenting team
Presenting team Anthony Taylor Asif Siddique Julia Ward-Osseiran Head of Real Estate Chief Financial Officer Investor Relations Officer ENBD REIT ENBD REIT ENBD REIT www.enbdreit.com ENBD REIT Investor Presentation as at 30th September 2019 3
Slide 4: Snapshot
Snapshot As at 30th September 2019 NAV Offices: 64% Al Thuraya 1 Binghatti Terraces Uninest Portfolio property USD 254m** Residential: 18% value NAV per share USD 435m USD 1.02** Alternative: 18% Burj Daman Arabian Oryx House South View School WAULT 3.47 years Occupancy Properties LTV* Office: 1.82
Slide 5: Payments to shareholders
Payments to shareholders Payments made to shareholders relating to USD USD per share % of NAV % of share price FY ending 31st March 2020 Interim dividend* 4,900,000 0.0196 1.93% 3.64% Payments made to shareholders relating to USD USD per share % of NAV % of share price FY ending 31st March 2019 Inte
Slide 6: Update on share buyback programme
Update on share buyback programme 4,500,000 - Number of shares % completion 4,000,000 Shares purchased 4,401,340 100% 3,500,000 Balance to buy - 0% 3,000,000 No of Shares 2,500,000 4,401,340 Number of shares purchased 4,401,340 2,000,000 1,500,000 100% purchased Total price paid USD 2,558,614 1,000,
Slide 7: Post-listing performance
Post-listing performance Property Dividend per Dividend % on Dividend % on Date NAV NAV per share Share price portfolio value share NAV* Share Price 30th Sep 2019 USD 435m USD 254m* USD 1.02* USD 0.0196 1.93% 3.64% USD 0.54 30th Jun 2019 USD 437m USD 255m* USD 1.02* - - - USD 0.52 31st Mar 2019 USD
Slide 8: NAV highlights
NAV highlights 30th September 2019 Property Portfolio Value USD 435m Cash USD 11m Prepayments & Accruals USD (9m) Gross Asset Value (GAV) USD 436m NAV per share USD 1.02 Net Asset Value (NAV) USD 254m Loan-to-Value (LTV) 42% Gross rental yield on NAV 14.11% Net Rental yield on NAV˄ 3.93% Number of s
Slide 9: Capital structure
Capital structure as at 30th September 2019 350 300 Finance terms: 250 41% Standard Chartered: 200 59% • 3mth LIBOR + 2.15% Fully USD m 150 drawn Mashreq Bank*: LTV 51% 100 • 3mth EIBOR + 2.65% Equity Debt 50 Equity Debt LTV 0 USD 254m USD 182m 42% Lender SC drawn Mashreq drawn SC undrawn Mashreq un
Slide 10: Overview
Overview
Slide 11: What is ENBD REIT?
What is ENBD REIT? A long and consistent track record Most Innovative ENBD REIT (CEIC) PLC (‘ENBD REIT’) is a real estate investment trust (REIT) that was Islamic Real Estate formed by Emirates NBD Asset Management (the Fund Manager) to invest in a Investment Trust UAE 2019 diversified portfolio of
Slide 12: History
History ENBD REIT’s track record dates back to 2005 Launch of Listing on Acquisition Emirates Acquisition Nasdaq Acquisition of Souq Real Estate Acquisition of Arabian Acquisition Dubai of South Extra Retail Fund of DHCC 49 Oryx House of Remraam 23rd March View School Centre Jun 2005 Apr 2007 Oct 20
Slide 13: Investment strategy
Investment strategy Which sectors are we focusing on? Which areas are we focusing on? Focus is on good quality The portfolio aims to be properties in the following diversified across the sectors: UAE: Office 50-60% Dubai 50-75% Residential 15-20% Alternative 25-35% Abu Dhabi 10-20% Office Residentia
Slide 14: Portfolio
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Slide 15: Footprint
Footprint www.enbdreit.com ENBD REIT Investor Presentation as at 30th September 2019 15
Slide 16: Portfolio overview and diversification
Portfolio overview and diversification By sector as % of portfolio Residential 18% Retail 6% Alternative 18% Education 5% Office 64% Student accommodation 7% ENBD REIT Investor Presentation as at 30th September 2019 www.enbdreit.com 16
Slide 17: Diversified tenant mix in the office segment
Diversified tenant mix in the office segment Logistics, 1% Retail-F&B, 4% Retail , 1% Sales , 5% Consultancy & Legal, Residential Media , 9% 20% 31% Alternative 16% Office portfolio: 64% of the overall holdings Healthcare , 22% ICT, 27% www.enbdreit.com ENBD REIT Investor Presentation as at 30th Sep
Slide 18: Portfolio overview
Portfolio overview Asset value as % of portfolio Gross Rental Income as % of portfolio South View School , 5% South View School , 4% Souq Extra, 7% Souq Extra, 6% Al Thuraya 1, Al Thuraya 1, 19% 16% Uninest, 7% Uninest, 8% Remraam, 4% Remraam, 4% Binghatti Binghatti Terraces, 7% Terraces, 7% The Edg
Slide 19: Portfolio characteristics
Portfolio characteristics Strong occupancy of 80% across the portfolio 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Al Thuraya 1 51% The Edge 100% Offices Target Burj Daman 77% 64% 50-60% DHCC49 73% DHCC25 67% Binghatti Terraces 87% Residential Target Arabian Oryx House 73% 18% 15-20% Remraam 82% Uni
Slide 20: ENBD REIT's portfolio has remained strong
ENBD REIT’s portfolio has remained strong Despite challenging market conditions Overall portfolio valuations 500 450 400 350 300 USD m 250 200 150 100 50 0 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 30/6/19 30/09/19 Office Residential Alternative Total www.enbdreit.com
Slide 21: Portfolio valuations coming under pressure
ENBD REIT’s portfolio valuations coming under pressure Office valuations Residential valuations 100 -7% 45 80 Flat -5% 35 -20% 60 USD m USD m 40 25 -27% -3% -8% 20 15 -33% Al Thuraya 1 Burj Daman DHCC49 DHCC25 The Edge Binghatti Terraces Arabian Oryx House Remraam Alternative valuations 40 35 +3% 30
Slide 22: Asset snapshot: Office
Asset snapshot Office The Edge Al Thuraya 1 Burj Daman DHCC 49 DHCC 25 Dubai Internet Overall Media City DIFC Healthcare City Healthcare City Overall City Office Acquired: Nov Acquired: Jun Acquired: Apr Acquired: Jul Portfolio Acquired: Oct Portfolio 2006 2015 2007 2007 2017 Market value (USD) 83m
Slide 23: Asset snapshot: Residential
Asset snapshot Residential Binghatti Terraces Arabian Oryx House Remraam Overall Residential Silicon Oasis Barsha Heights Dubailand Overall Portfolio Portfolio Acquired: May 2016 Acquired: Oct 2014 Acquired: Sep 2015 Market value (USD) 29m 31m 16m 76m 435m % of portfolio value 7% 7% 4% 18% 100% Net
Slide 24: Asset snapshot: Alternative
Asset snapshot Alternative South View Uninest Souq Extra Retail School Overall Dubailand Centre Remraam Alternative Overall Portfolio Acquired: May Acquired: Dec Acquired: Aug Portfolio 2017 2017 2017 Market value (USD) 34m 25m~ 22m 81m 435m % of portfolio value 7% 6% 5% 18% 100% Net leasable area (
Slide 25: Financials
Financials
Slide 26: Financial summary
Financial summary As at 30th September 2019 • Net rental income / FFO 7.8% down from previous 6 months period • Gross income 6.6% down from previous 6 months period • Cash return on NAV stable, despite soft real estate market • Unrealised valuation losses negatively impacted net income www.enbdreit.
Slide 27: Financial performance
Financial performance April – September 2019 (6 months) 25,000,000 20,000,000 18,990,756 17,917,052 15,000,000 10,000,000 6,957,203 4,986,899 Apr-Sep USD 5,000,000 2019-2020 0 Apr-Sep (5,000,000) (3,461,350) 2018-2019 (10,000,000) (10,418,553) (10,017,113) (12,033,553) (15,000,000) (12,930,153) (15,
Slide 28: Breakdown of total expenses
Breakdown of total expenses as at 30th September 2019 USD USD Apr-Sep Apr-Sep Variance 2019-2020 2018-2019 Fund expenses, Operating expenses, (3,097,526) (3,817,570) Gross income 17,917,052 18,990,756 (360,810) Total expenses (12,930,153) (12,033,553) (896,600) FFO Net Rental Income 4,986,899 6,957,
Slide 29: Appendix
Appendix
Slide 30: Statement of financial position
Financials Financial performance - Statement of financial position (USD) As at 30th Sep 2019 As at 30th Sep 2018 As at 31st Mar 2019 Investment properties 432,468,068 458,730,200 450,322,080 Right of use assets 15,389,206 - - Cash and cash equivalent 10,913,877 15,301,230 15,754,585 Trade and other
Slide 31: Statement of comprehensive income
Financials Financial performance - Statement of comprehensive income (USD) 6mths 6mths Full Year Apr-Sep 2019 Apr-Sep 2018 31st Mar 2019 Rental Income 17,871,379 18,930,900 38,040,334 Profit on Deposits 45,673 59,856 131,663 Total Income 17,917,052 18,990,756 38,171,997 Operating expenses (3,817,570
Slide 32: Corporate structure
Corporate structure Appendix 3 Asset Management Board of Directors HR Fund Management Investor Relations Support Functions Emirates NBD Asset Management Emirates NBD Group Governance Oversight Committee Independent Finance Audit Investment Committee Operations Risk Shari’a Board Compliance www.enbdr
Slide 33: Third party support functions
Third party support functions Appendix 4 Administrator, custodian and Legal counsel company secretary White & Case Apex Fund Services Independent auditor Public relations Deloitte & Touche (M.E.) Instinctif Partners Independent valuation Independent valuation CBRE Cavendish Maxwell www.enbdreit.com
Slide 34: Management
Management Appendix 5 Anthony Taylor, Head of Real Estate Melanie Fernandes, Senior Portfolio Manager, Real Estate Anthony has over ten years’ experience within the institutional real estate market. He was Melanie has been Asset Manager since 2014. She focuses on real estate asset appointed Head of
Slide 35: Board of Directors
Board of Directors Appendix 6 Tariq Bin Hendi, Chairman Ali Rashid Humaid Al Mazroei, Director Tariq is currently an Executive Vice President and the Head of Ali is Group Director and CFO at Bahri & Mazroei Group, a diversified Products & Advisory at Emirates NBD Group, having previously investment
Slide 36: Investment Committee
Investment Committee Appendix 7 Khalid Al Fahim Khalid has over 15 years of professional experience in management and board advisory, and has been an active member of various organisations and industries in the UAE, including Al Fahim Group (UAE), where he has held offices from business development
Slide 37: Oversight Committee
Oversight Committee Appendix 8 Abdulla Mohammed Al Awar, CEO, Dubai Islamic Economic Development Centre Abdulla is CEO of the Dubai Islamic Economy Development Centre (DIEDC), with responsibility for delivering the ‘Dubai: Capital of Islamic Economy’ strategy. Prior to his role at DIEDC he was CEO o
Slide 38: Shari'a Supervisory Board
Shari’a Supervisory Board Appendix 9 Dr. Mohamed Ali Elgari, Chairman Dr. Mohamed Ali Elgari is a Professor of Islamic Economics and the former Director of the Centre for Research in Islamic Economics at King Abdul Aziz University in Saudi Arabia. He is a member on the editorial board of several aca
Slide 39: Acquisition process
Acquisition process End negotiations or End negotiations or renegotiate with the renegotiate with the seller and present once seller and present once again to the IC for again to the board for approval approval If not If not suitable suitable Present to Investment Identify asset Conduct initial due
Slide 40: Divestment process
Divestment process End negotiations or Prepare sale information Receive and negotiate renegotiate with the pack & circulate to offers from qualified purchaser and present identitfied qualified purchasers in the market once again to the IC for active agents approval If not If offer If not suitable su
Slide 41: The Fund Manager
The Fund Manager Appendix 10 Emirates NBD Asset Management is the award winning, wholly owned subsidiary of Emirates NBD Bank PJSC. The Company provides a full range of investment solutions, including in-house managed funds and tailor made discretionary solutions, offering exposure to the regional M
Slide 42: Contact us
Contact us General Enquiries ENBDREITIR@emiratesnbd.com +971 (0)4 509 3010 Investor Relations Julia Ward-Osseiran julia.osseiran@instinctif.com +971 (0)4 509 3010 Company Secretary Jean Kenny Labutte jeank@apexfunddubai.ae +971 (0)4 428 9221 Tenants/Leasing Melanie Fernandes fernandesmm@EmiratesNBD.
Slide 43: Disclaimer
Disclaimer The information, estimates and opinions (“Information”) expressed herein are made in good faith and are based on sources believed to be reliable, but no representation or warranty, express or implied, is made as to the accuracy, completeness or correctness of the Information. The Informat
Slide 44: Thank you
Thank you www.enbdreit.com
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