Enbd Reit (ceic) Plc · NASDAQDUBAI:ENBDREIT
Enbd Reit (ceic) — Investor Presentation (December 2018)
43 slides from Enbd Reit (ceic)'s investor presentation, Dec 31, 2018
Slide 1: ENBD REIT
ENBD Managed by Emirates NBD Asset Management
Slide 2: Investor Presentation as at 31st December 2018
Investor Presentation as at 31st December 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 31st December 2018 3
Slide 4: Snapshot
Snapshot As at 31st December 2018 Offices: 64% Al Thuraya 1 Binghatti Terraces Uninest Portfolio property value Properties Residential: 18% USD 456m 11 Alternative: 18% Burj Daman Arabian Oryx House South View School WAULT 3.61 years Occupancy LTV* Gross yield^ Office: 2.01 years 88% Residential: 0.
Slide 5: Payments to shareholders
Payments to shareholders % of NAV % of share % of share Payments made to USD per 30th Sep price 30th price 31st shareholders relating to USD share 2018 Sep 2018 Dec 2018 FY ending 31st March 2019 USD 1.12 USD 0.75 USD 0.64 Proposed interim dividend* 6,868,836 0.0270 2.41% 3.60% 4.20% Payments made t
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 31st Dec 2018 USD 456m USD 284m USD 1.11 - - - USD 0.64 30th Sep 2018 USD 459m USD 285m USD 1.12 USD 0.0270° 2.41% 3.60% USD 0.75 30th Jun 2018 USD 463
Slide 7: NAV highlights
NAV highlights 31st December 2018 Property Portfolio Value USD 456m Cash USD 17m Gross Asset Value (GAV) USD 461m NAV per share USD 1.11 Net Asset Value (NAV) USD 284m Loan-to-Value (LTV) 38% Gross rental yield on NAV 13.24% Net yield on NAV˄ 4.63% Number of shares in issue 254,401,340 ˄ Financial Y
Slide 8: Capital structure
Capital structure as at 31st December 2018 250 Finance terms: 30 200 38% 13 ENBD: 6% undrawn 45 150 • 3mth EIBOR + 3.14% Fully USD m 62% drawn Standard Chartered: 100 LTV 44% 38% drawn 134 • 3mth LIBOR + 2.15% 50 Equity Debt 0 Equity Debt LTV Lender ENBD drawn SC drawn * ENBD undrawn SC undrawn USD
Slide 9: Overview
Overview
Slide 10: What is ENBD REIT?
What is ENBD REIT? A long and consistent track record ENBD REIT (CEIC) PLC (‘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 Uni
Slide 11: 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 12: 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 13: Portfolio
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Slide 14: Footprint
Footprint www.enbdreit.com ENBD REIT Investor Presentation as at 31st December 2018 14
Slide 15: 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 31st December 2018 www.enbdreit.com 15
Slide 16: Diversified tenant mix in the office segment
Diversified tenant mix in the office segment Logistics, 1% Retail-F&B, 4% Retail , 1% Sales , 3% Media , 10% Residential 20% ICT, 34% Alternative 16% Office portfolio: 64% of the overall holdings Healthcare , 19% Consultancy & Legal , 28% www.enbdreit.com ENBD REIT Investor Presentation as at 31st D
Slide 17: Portfolio overview
Portfolio overview Asset value as % of portfolio South View School , 5% Souq Extra, 6% Al Thuraya 1, 20% Uninest, 7% Remraam, 4% The Edge, 17% Binghatti Terraces, 7% Arabian Oryx House, 7% DHCC 25, 5% Burj Daman, 15% DHCC 49, 7% www.enbdreit.com ENBD REIT Investor Presentation as at 31st December 20
Slide 18: Portfolio characteristics
Portfolio characteristics Strong occupancy of 88% across the portfolio 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Al Thuraya 1 81% The Edge 100% Offices Target Burj Daman 74% 64% 50-60% DHCC49 83% DHCC25 90% Binghatti Terraces 69% Residential Target Arabian Oryx House 97% 18% 20-25% Remraam 93% Uni
Slide 19: 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 Office Residential Alternative Total www.enbdreit.com ENBD REIT Investor Prese
Slide 20: 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 -20% 40 Flat 25 -21% 20 -4% 15 31/3/17 30/6/17 30/9/17 31/12/17 31/3/18 30/6/18 30/9/18 31/12/18 31/3/17 30/6/17 30/9/17 31/12/17 31/3/18 30/6/18 30/9/18 31/12/18 Al Thura
Slide 21: 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 22: 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) 32m 34m 19m 85m 456m % of portfolio value 7% 7% 4% 18% 100% Net
Slide 23: 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 81m 456m % of portfolio value 7% 6% 5% 18% 100% Net leasable area (
Slide 24: Financials
Financials
Slide 25: Financial highlights
Financial highlights As at 31st December 2018 • Net rental income / FFO up 16% on the same period 2017 • Gross income up 18% due to acquisitions and high occupancies • Cash return on NAV improving, despite soft real estate market • Unrealised valuation losses impacting net income www.enbdreit.com EN
Slide 26: Financial performance
Financial performance Apr – Dec (9 months) 40,000,000 30,000,000 28,156,394 23,943,795 20,000,000 12,608,996 9,837,295 10,000,000 8,507,079 Apr - Dec USD 2018 4,101,917 0 Apr - Dec (4,668,084) 2017 (10,000,000) (15,436,716) (14,505,379) (20,000,000) (18,319,098) (30,000,000) Gross income Expenses Ne
Slide 27: Breakdown of total expenses
Breakdown of total expenses as at 31st December 2018 USD USD Apr – Dec Apr – Dec Variance 2018 2017 (9 months) (9 months) Fund expenses, (5,129,188) Operating expenses, Gross income 28,156,394 23,943,795 4,212,599 (5,567,890) Total expenses (18,319,098) (15,436,716) (2,882,382) FFO Finance cost, (7,
Slide 28: Appendix
Appendix
Slide 29: Statement of financial position (USD)
Statement of financial position (USD) Appendix 1 As at 31st Dec 2018 As at 30th Sep 2018 As at 31st Mar 2018 Investment properties 455,720,407 458,730,200 462,561,122 Cash and cash equivalent 16,734,521 15,301,230 18,693,403 Trade and other receivables 2,453,814 5,190,595 4,913,400 Total assets 474,
Slide 30: Statement of comprehensive income (USD)
Statement of comprehensive income (USD) Appendix 2 Apr-Dec 2018 Apr-Dec 2017 FY 31st Mar 2018 (9 months) (9 months) (12 months) Rental Income 28,047,129 23,404,949 32,434,112 Profit on Deposits 109,265 538,846 549,366 Total Income 28,156,394 23,943,795 32,983,478 Operating expenses (5,567,890) (5,76
Slide 31: Fund Management
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 32: 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 33: 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 34: 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 35: 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 36: 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 37: 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 38: 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 39: 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 40: 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 41: 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 42: 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 43: Thank you
Thank you www.enbdreit.com
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