Enbd Reit (ceic) Plc · NASDAQDUBAI:ENBDREIT
Enbd Reit (ceic) — Enbd REIT — Investor Presentation (March 2018)
45 slides from Enbd Reit (ceic)'s investor presentation, March 2018
Slide 1: ENBD REIT Investor Presentation as at 31st March 2018
www.enbdreit.com ENBD REIT Investor Presentation as at 31st March 2018 1
Slide 2: Investor Presentation as at 31st March 2018
Investor Presentation as at 31st March 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 March 2018 3
Slide 4: Snapshot
Snapshot As at 31st March 2018 Offices: 63% Al Thuraya 1 Binghatti Terraces Uninest Portfolio property value Properties Residential: 21% USD 463m 11 Alternative: 16% Burj Daman Arabian Oryx House South View School WAULT 3.50 years Occupancy LTV* Gross yield^ Office: 2.40 years 89% Residential: 0.80
Slide 5: 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 Mar 2018 USD 463m USD 300m USD 1.18 USD 0.0129 1.09% 1.30% USD 0.99 31st Dec 2017 USD 460m USD 300m USD 1.18 - - - USD 0.99 30th Sep 2017 USD 353m
Slide 6: Dividend policy
Dividend policy • Final dividend paid to holders of EREF income share class as at Dec 2016 • First dividend paid to all ENBD REIT shareholders as at Jun 2017 • In Dec 2017, the Board of Directors decide to re-align dividend calendar (historically Jun/Dec) with financial calendar (y/e Mar) • Going fo
Slide 7: Events impacting yield for 2017/18
Events impacting yield for 2017/18 as at 31st March 2018 8% Target yield at listing: 7% 7% -0.41% 6% -1.56% 5% -0.21% General market conditions FFO +4.14% -0.68% Length of time to deploy Valuation gain +0.19% 4% Burj Daman occupancy Residential occupancies Net income yield on NAV +4.33% 3% Net incom
Slide 8: NAV highlights
NAV highlights 31st March 2018 Property Portfolio Value USD 463m Cash USD 19m Gross Asset Value (GAV)* USD 469m NAV per share USD 1.18 Net Asset Value (NAV)* USD 300m Loan-to-Value (LTV) 36% Gross rental yield on NAV**˄ 10.80% Net yield on NAV˄ 4.33% Number of shares in issue 254,401,340 * Cum-divid
Slide 9: Capital structure
Capital structure as at 31st March 2018 Existing finance terms • Profit only 36% • Matures 2021 • 3-month EIBOR + 2.5% • Repayment: • 10% end of year 4 • 90% end of year 5 64% Further financing available Equity Debt • Available drawdown remaining on existing facility: USD 22m Equity Debt LTV • New f
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: The REIT market
The REIT market The objective of a REIT is to generate a regular dividend income stream for investors, typically derived from income from investment properties, usually in the form of rent, with the Global listed real estate: additional opportunity for capital appreciation of the underlying • worth
Slide 14: 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 15: Portfolio
ENBD Managed by Emirates NBD Asset Manager
Slide 16: Footprint
Footprint www.enbdreit.com ENBD REIT Investor Presentation as at 31st March 2018 16
Slide 17: Portfolio overview
Portfolio overview Asset value as % of portfolio 3% 5% 8% 19% Al Thuraya 1 The Edge 5% Burj Daman Binghatti Terraces Arabian Oryx House 5% DHCC 49 17% DHCC 25 7% Remraam Uninest Souq Extra 8% South View School 15% 8% www.enbdreit.com ENBD REIT Investor Presentation as at 31st March 2018 17
Slide 18: Portfolio characteristics
Portfolio characteristics Strong occupancy of 89% across the portfolio 0% 20% 40% 60% 80% 100% Al Thuraya 1 86% The Edge 100% Offices: Burj Daman 74% 63% DHCC49 91% DHCC25 89% Binghatti Terraces 97% Residential: Arabian Oryx House 81% 21% Remraam 74% Uninest 100% Alternative: Souq Extra 100% 16% Sou
Slide 19: 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 20: 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) 39m 36m 21m 96m 463m % of portfolio value 8% 8% 5% 21% 100% Net
Slide 21: 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) 35m 25m~ 15m^ 75m 463m % of portfolio value 8% 5% 3% 16% 100% Net leasable area
Slide 22: Key tenants
Key tenants www.enbdreit.com NAV Quarterly Update Conference Call as at 31st March 2018 22
Slide 23: Case study: asset management
Case study: asset management Burj Daman Offices, DIFC Active management • Acquired 2.5 floors vacant (10th, 14th and part of 15th floor) in office tower in June 2015, with power upgrade completed in 2016 • Sub-division and fit-out of 10th floor completed Nov 2015 - now 84% leased • Sub-division and
Slide 24: Recent acquisition: Souq Extra
Recent acquisition Souq Extra (December 2017) Property highlights • Souq Extra Phase 1 is an existing 36,027-sqft community retail centre, well situated in Dubai Silicon Oasis. • 100% leased to 42 retail tenants including Carrefour Market, KFC, McDonalds and Starbucks. Transaction highlights • Phase
Slide 25: Recent acquisition: The Edge
Recent acquisition The Edge (October 2017) Property highlights • The Edge is a premier 92,000-sqft office building, home to global tech outfit Oracle, social media giant Snapchat, and American education publisher McGraw Hill, acquired on 5th October 2017 • As a prime grade ‘A’ property, tenants enjo
Slide 26: Recent acquisition: South View School
Recent acquisition South View School (August 2017) Property highlights • ENBD REIT signed a Musataha of the plot on 6th August 2017, and will construct the school at a total transaction value of AED 55 million (USD 15 million) • The total ground floor area of the school will be 132,000 sq. ft. on a
Slide 27: Recent acquisition: Uninest, Dubailand
Recent acquisition Uninest, Dubailand (May 2017) Property highlights • Acquired 29th May 2017 for AED 120m • 424-bed property from global specialist, Global Student Accommodation • Built in 2016; 160,264 sq. ft. including 2 basement levels, a ground floor, 9 upper storeys as well as a roof-top swimm
Slide 28: Financials
ENBD Managed by Emirates NBD Asset Management
Slide 29: Total income
Total income as at 31st March 2018 40,000,000 35,000,000 32,983,477 33,542,724 30,000,000 25,000,000 Jun-17 20,000,000 Sep-17 7,389,832 USD Dec-17 15,000,000 7,288,262 Mar-18 10,119,282 10,536,597 10,000,000 9,113,721 101,570 7,541,811 FY Mar-18 5,000,000 9,039,683 2,577,471 559,247 5,497,013 1,422,
Slide 30: Total expenses
Total expenses as at 31st March 2018 USD Operating expenses, (7,483,318) Net income, 13,001,025 Margin = 39% Finance cost, (6,526,011) Fund expenses, (6,532,370) See Appendix 2 for Statement of Comprehensive Income www.enbdreit.com NAV Quarterly Update Conference Call as at 31st March 2018 30
Slide 31: Funds from operations (FFO)
Funds from operations (FFO) as at 31st March 2018 4.5% Valuation gain/loss USD 559,247 4.0% +0.19% 3.5% 3.0% Net Income: 2.5% USD 13,001,025 FFO +4.33% 2.0% USD 12,441,777 1.5% +4.14% 1.0% 0.5% 0.0% FFO Net income yield Valuation gain/loss www.enbdreit.com NAV Quarterly Update Conference Call as at
Slide 32: Appendix
ENBD Managed by Emirates NBD Asset Management
Slide 33: Statement of financial position (USD)
Statement of financial position (USD) Appendix 1 As at 31st Mar 2018 As at 31st Mar 2017 Investment properties 462,561,122 315,273,618 Cash and cash equivalent 18,693,403 109,855,240 Trade and other receivables 4,913,400 2,390,998 Total assets 486,167,925 427,519,856 Current liabilities Trade and ot
Slide 34: Statement of comprehensive income (USD)
Statement of comprehensive income (USD) Appendix 2 As at 31st Mar 2018 As at 31st Mar 2017 Rental income 32,434,112 26,732,066 Profit on Islamic Deposits 549,366 838,932 Net unrealised gain 559,247 2,194,098 Realised gain - 329,432 Total income 33,542,725 30,094,528 Operating expenses (7,483,319) (7
Slide 35: 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 36: 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 37: Management
Management Appendix 5 Anthony Taylor, Head of Real Estate Ben Coombe, Senior Portfolio Manager, Real Estate Anthony has over ten years’ experience within the institutional real estate market. He was Ben has been Senior Portfolio Manager, Real Estate since 2009. Prior to that he was Asset Manager at
Slide 38: 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 39: 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 40: 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 41: Shari'a Supervisory Board
Shari’a Supervisory Board Appendix 9 Dr. Hussein Hamid Hassan, Chairman Dr. Hussein Hamid Hassan currently chairs or is a member of the Shari’a boards of over 18 Islamic Financial Institutions, including Emirates NBD Asset Management Limited, Emirates Islamic Bank PJSC, Dubai Islamic Bank PJSC, Shar
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 Ben Coombe benjaminc@emiratesnbd.com +971 (0)4 50
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