Enbd Reit (ceic) Plc · NASDAQDUBAI:ENBDREIT
Enbd Reit (ceic) — Investor Presentation (June 2018)
45 slides from Enbd Reit (ceic)'s investor presentation, Jun 30, 2018
Slide 1: ENBD REIT
ENBD Managed by Emirates NBD Asset Management
Slide 2: Investor Presentation as at 30th June 2018
Investor Presentation as at 30th June 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 June 2018 3
Slide 4: Snapshot
Snapshot As at 30th June 2018 Offices: 64% Al Thuraya 1 Binghatti Terraces Uninest Portfolio property value Properties Residential: 20% USD 463m 11 Alternative: 16% Burj Daman Arabian Oryx House South View School WAULT 3.47 years Occupancy LTV* Gross yield^ Office: 2.35 years 90% Residential: 0.70 y
Slide 5: FY2018 payments to shareholders
FY2018 payments to shareholders Payments made to shareholders % of NAV % of share price relating to USD USD 300m USD 252m FY ending 31st March 2018 Interim dividend (paid 12th July 2017) 9,718,131 3.24% 3.86% Final dividend (paid 13th June 2018) 3,281,777 1.09% 1.30% Return of capital (paid 13th Jun
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 Jun 2018 USD 463m USD 289m ͌ USD 1.14 ͌ - - - USD 0.81 31st Mar 2018 USD 463m USD 300m* USD 1.18 USD 0.0129 1.09% 1.30% USD 0.99 31st Dec 2017 USD
Slide 7: 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 8: NAV highlights
NAV highlights 30th June 2018 Property Portfolio Value USD 463m Cash USD 6m Gross Asset Value (GAV) USD 457m NAV per share USD 1.14 Net Asset Value (NAV) USD 289m Loan-to-Value (LTV) 37% Gross rental yield on NAV** 13.20% Net yield on NAV˄ 4.50% Number of shares in issue 254,401,340 ** FFO - include
Slide 9: Capital structure
Capital structure as at 30th June 2018 Existing finance terms • Profit only 37% • Matures 2021 • 3-month EIBOR + 3.0% • Repayment: • 10% end of year 4 63% • 90% end of year 5 Further financing available Equity Debt • Available drawdown remaining on existing facility: USD 22m Equity Debt LTV • New fa
Slide 10: Overview
Overview
Slide 11: 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 12: 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 13: 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 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
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Slide 16: Footprint
Footprint www.enbdreit.com ENBD REIT Investor Presentation as at 30th June 2018 16
Slide 17: Portfolio overview and diversification
Portfolio overview and diversification By sector as % of portfolio Residential 20% Retail 5% Alternative 16% Education 3% Office 64% Student accommodation 8% ENBD REIT Investor Presentation as at 30th June 2018 www.enbdreit.com 17
Slide 18: Portfolio overview
Portfolio overview Asset value as % of portfolio South View School , Souq Extra, 3% 5% Uninest, Al Thuraya 1, 8% 20% Remraam, 4% DHCC 25, 5% The Edge, DHCC 49, 17% 7% Arabian Oryx House, 8% Binghatti Terraces, Burj Daman, 8% 15% www.enbdreit.com ENBD REIT Investor Presentation as at 30th June 2018 1
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 86% The Edge 100% Offices Target Burj Daman 74% 64% 50-60% DHCC49 86% DHCC25 90% Binghatti Terraces 96% Residential Target Arabian Oryx House 89% 20% 20-25% Remraam 76% Uni
Slide 20: 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 21: 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) 37m 35m 21m 93m 463m % of portfolio value 8% 8% 4% 20% 100% Net
Slide 22: 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 23: Key tenants
Key tenants www.enbdreit.com ENBD REIT Investor Presentation as at 30th June 2018 23
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
Financials
Slide 29: Funds from operations (FFO)
Funds from operations (FFO) as at 30th June 2018 1.2% 1.0% Valuation gain/loss 0.8% USD (2,410,858) - 0.83% * 0.6% FFO USD 3,250,763 0.4% + 1.12% * 0.2% Net Income USD 839,905 +0.29% * 0.0% FFO Net income yield Valuation gain/loss See Appendix 2 for Statement of Comprehensive Income * % of NAV for t
Slide 30: Total income
Total income as at 30th June 2018 10,119,282 12,000,000 10,000,000 9,584,893 7,541,811 8,000,000 7,174,035 6,000,000 Jun-18 2,577,471 USD Jun-17 4,000,000 2,000,000 0 Gross income* Total income -2,000,000 -2,410,858 -4,000,000 Valuation gain/loss * Includes gross rental income and profit on Islamic
Slide 31: Total expenses
Total expenses as at 30th June 2018 Net income, USD USD Q1 Jun-18 Q1 Jun-17 Variance 839,905 Gross income 9,584,893 7,541,811 2,043,082 Operating expenses, (2,210,894) Valuation (2,410,858) 2,577,471 (4,988,329) gain/(loss) Margin =12%* Fund expenses, Total expenses (6,334,130) (4,953,995) (1,380,13
Slide 32: Appendix
Appendix
Slide 33: Statement of financial position (USD)
Statement of financial position (USD) Appendix 1 As at 30th Jun 2018 As at 31st Mar 2018 Investment properties 462,970,325 462,561,122 Cash and cash equivalent 6,262,962 18,693,403 Trade and other receivables 2,797,821 4,913,400 Total assets 472,031,108 486,167,925 Current liabilities Trade and othe
Slide 34: Statement of comprehensive income (USD)
Statement of comprehensive income (USD) Appendix 2 Quarter ending 30th June 2018 31st Mar 2018 30st June 2017 Rental income 9,535,621 9,029,163 7,243,571 Profit on Islamic Deposits 49,272 10,520 298,241 Net unrealised gain (2,410,858) (3,542,670) 2,577,471 Total income 7,174,035 5,497,013 10,119,282
Slide 35: 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 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 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 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 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