Enbd Reit (ceic) Plc · NASDAQDUBAI:ENBDREIT
Enbd Reit (ceic) — Investor Presentation (September 2018)
45 slides from Enbd Reit (ceic)'s investor presentation, Sep 30, 2018
Slide 1: ENBD REIT
ENBD Managed by Emirates NBD Asset Management
Slide 2: Investor Presentation as at 30th September 2018
Investor Presentation as at 30th September 2018 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 2018 3
Slide 4: Snapshot
Snapshot As at 30th September 2018 Offices: 63% Al Thuraya 1 Binghatti Terraces Uninest Portfolio property value Properties Residential: 19% USD 459m 11 Alternative: 18% Burj Daman Arabian Oryx House South View School WAULT 3.75 years Occupancy LTV* Gross yield^ Office: 2.18 years 90% Residential: 0
Slide 5: Payments to shareholders
Payments to shareholders Payments made to % of NAV % of share price shareholders relating to USD USD per share USD 1.12 USD 0.75 FY ending 31st March 2019 Proposed interim 6,868,836 0.0270 2.41% 3.60% dividend* Payments made to % of NAV % of share price shareholders relating to USD USD 1.18 USD 0.99
Slide 6: Post-listing performance
Post-listing performance Property Dividend % NAV per Dividend Dividend % Date portfolio NAV on Share Share price share per share on NAV* value Price 30th Sep 2018 USD 459m USD 285m USD 1.12 USD 0.0270° 2.41% 3.60% USD 0.75 30th Jun 2018 USD 463m USD 289m ͌ USD 1.14 ͌ - - - USD 0.81 31st Mar 2018 USD
Slide 7: NAV highlights
NAV highlights 30th September 2018 Property Portfolio Value USD 459m Cash USD 8m 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 Y
Slide 8: Capital structure
Capital structure as at 30th September 2018 Existing finance terms • Profit only 38% • Matures 2021 • 3-month EIBOR + 3.0% • Repayment: • 10% end of year 4 (Nov 2020) 62% • 90% end of year 5 (Nov 2021) Further financing available Equity Debt • Available drawdown remaining on existing facility: USD 1
Slide 9: Capital structure
Capital structure Post 30th September 2018 250 New finance facility signed with Standard Chartered 200 37 • USD 75m plus additional USD 25m accordion option 6% undrawn 13 • USD 45m to repay ENBD AWAI facility 150 • USD 30m balance for acquisitions (earmarked for Souq Fully 43 USD m Extra Phase 2) dr
Slide 10: Overview
Overview
Slide 11: What is ENBD REIT?
What is ENBD REIT? A long and consistent track record ENBD REIT (CEIC) Limited (‘ENBD REIT’) is a real estate investment trust (REIT) that was formed by Emirates NBD Asset Management (the Fund Manager) to invest in a diversified portfolio of Shari'a compliant real estate, with a primary focus on the
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 20-25% 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 2018 15
Slide 16: Portfolio overview and diversification
Portfolio overview and diversification By sector as % of portfolio Residential 19% Retail 5% Alternative 18% Education 5% Office 63% Student accommodation 7% ENBD REIT Investor Presentation as at 30th September 2018 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% Residential 20% Media , 11% ICT, 33% Alternative 16% Office portfolio: 63% of the overall holdings Healthcare , 19% Consultancy & Legal , 27% www.enbdreit.com ENBD REIT Investor Presentation as at 30th S
Slide 18: Portfolio overview
Portfolio overview Asset value as % of portfolio Souq Extra, 5% South View School , 5% Al Thuraya 1, 20% Uninest, 8% Remraam, 4% Arabian Oryx The Edge, 17% House, 7% Binghatti Terraces, 8% DHCC 25, 5% Burj Daman, 15% DHCC 49, 7% www.enbdreit.com ENBD REIT Investor Presentation as at 30th September 2
Slide 19: Portfolio characteristics
Portfolio characteristics Strong occupancy of 90% across the portfolio 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Al Thuraya 1 84% The Edge 100% Offices Target Burj Daman 74% 63% 50-60% DHCC49 86% DHCC25 90% Binghatti Terraces 87% Residential Target Arabian Oryx House 97% 19% 20-25% Remraam 90% 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 Office Residential Alternative Total www.enbdreit.com ENBD REIT Investor Presentation a
Slide 21: ENBD REIT's Portfolio has remained strong
ENBD REIT’s Portfolio has remained strong Office valuations Residential valuations 100 +1% 45 80 +1% -13% Flat 35 USD m USD m 60 -13% 40 25 -17% Flat 20 -4% 15 31/3/17 30/6/17 30/9/17 31/12/17 31/3/18 30/6/18 30/9/18 31/3/17 30/6/17 30/9/17 31/12/17 31/3/18 30/6/18 30/9/18 Al Thuraya 1 Burj Daman DH
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) 90m
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) 35m 34m 20m 89m 459m % of portfolio value 8% 7% 4% 19% 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~ 21m 80m 459m % of portfolio value 8% 5% 5% 18% 100% Net leasable area (
Slide 25: New School Opening
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 V
Slide 26: Financials
Financials
Slide 27: Financial highlights
Financial highlights H1 2018/2019 • Net rental income / FFO up 42% on H1 2017/2018 • Gross income up 28% due to acquisitions and high occupancies • Cash return on NAV improving • Unrealised valuation losses impacting net income www.enbdreit.com ENBD REIT Investor Presentation as at 30th September 20
Slide 28: Financial performance
Financial performance H1 2018/2019 25,000,000 20,000,000 18,990,756 14,830,073 15,000,000 10,000,000 Sep-18 6,957,203 7,571,018 USD Sep-17 4,891,977 5,000,000 2,679,041 0 (5,000,000) (3,461,350) (10,000,000) (9,938,096) (10,418,553) (12,033,554) (15,000,000) Gross income Expenses Net rental income /
Slide 29: Breakdown of total expenses
Breakdown of total expenses as at 30th September 2018 USD USD H1 Sep-18 H1 Sep-17 Variance Gross income 18,990,756 14,830,073 4,160,683 Fund expenses, (3,417,283) Operating expenses, (3,686,136) Total expenses (12,033,554) (9,938,096) (2,095,457) FFO Net Rental Income 6,957,203 4,891,977 2,065,226 (
Slide 30: Appendix
Appendix
Slide 31: Statement of financial position (USD)
Statement of financial position (USD) Appendix 1 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 oth
Slide 32: Statement of comprehensive income (USD)
Statement of comprehensive income (USD) Appendix 2 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
Slide 33: 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 34: Third party support functions
Third party support functions Appendix 4 Administrator, custodian and Legal counsel company secretary K&L Gates Apex Fund Services Independent auditor Public relations KPMG Instinctif Partners Independent valuation Independent valuation CBRE Cavendish Maxwell www.enbdreit.com ENBD REIT Investor Pres
Slide 35: 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 36: Board of Directors
Board of Directors Appendix 6 Tariq Bin Hendi, Chairman Tariq is currently an Executive Vice President and the Head of Products & Advisory at Emirates NBD Group, having previously served as the CEO of Emirates NBD Asset Management. He has over 18 years of experience, with a primary focus on asset ma
Slide 37: 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 38: 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 39: 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 40: 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 41: 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 42: 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 43: Contact us
Contact us General Enquiries ENBDREITIR@emiratesnbd.com +971 (0)4 509 3010 Investor Relations Julia Ward-Osseiran juliao@emiratesnbd.com +971 (0)4 509 3016 Company Secretary Jean Kenny Labutte jeank@apexfunddubai.ae +971 (0)4 428 9221 Tenants/Leasing Melanie Fernandes fernandesmm@EmiratesNBD.com +97
Slide 44: 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 45: Thank you
Thank you www.enbdreit.com
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