Slide 1: ENBD REIT – Managed by Emirates NBD Asset Management
ENBD Managed by Emirates NBD Asset Management ENBD Managed by Emirates NBD Asset Management
Slide 2: Quarterly Update 31st March 2020
Quarterly Update 31st March 2020 www.enbdreit.com
Slide 3: Presenting team
Presenting team Anthony Taylor Asif Siddique Head of Real Estate Chief Financial Officer ENBD REIT ENBD REIT 3
Slide 4: Snapshot: 31st March 2020
Snapshot: 31st March 2020 NAV: Offices: 65% Al Thuraya 1 Binghatti Terraces Uninest Portfolio property USD 230m** value Residential: 16% USD 410m NAV per share: USD 0.92** Alternative: 19% Burj Daman Arabian Oryx House South View School WAULT: 3.24 years Occupancy Properties LTV* Office: 1.50 years
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 Proposed final dividend* (28th July 2020) 5,100,000 0.0204 2.22% 5.73% Interim dividend (paid 17th Dec 2019) 4,900,000 0.0196 1.93% 3.64% Total proposed to shareho
Slide 6: Proposed share capital reduction at upcoming AGM
Proposed share capital reduction at upcoming AGM • This does not impact shareholders’ right in any way. • This is an accounting adjustment to reduce the share capital of the company on the balance sheet and reallocate this same amount to a distributable reserve where it can be utilised to make payme
Slide 7: Balance sheet impact of proposed share capital reduction
Balance sheet impact of proposed share capital reduction Current Post share capital reduction 250 As at 31st March 2020 (ex div) As at 31st March 2020 (ex div) Total assets USD 437m Total assets USD 437m → 200 Total liabilities USD 213m Total liabilities USD 213m → 150 Total equity (NAV) USD 225m To
Slide 8: Proposed fee reductions
Proposed fee reductions • Due to the COVID19 pandemic and recognition of below target performance both on share price and net rental income yield. • Management has proposed a 20bps fee reduction (-13%) for the next 6 months provided total fees during this period do not fall below 25%. • ENBD REIT’s
Slide 9: Capital structure: 31st March 2020
Capital structure: 31st March 2020 Finance terms: 200 • Standard Chartered: 3mth LIBOR + 2.15% • Mashreq Bank*: 3mth EIBOR + 2.65% 150 Fully 100 drawn USD m LTV 46% 44% Debt Equity 56% 50 0 Lender Equity Debt LTV USD 230m USD 182m 44% SC drawn Mashreq drawn Mashreq undrawn • Mashreq Bank Facility ex
Slide 10: Portfolio
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Slide 11: Strong occupancy of 82% across the portfolio
Portfolio characteristics Strong occupancy of 82% across the portfolio 0% 20% 40% 60% 80% 100% Al Thuraya Tower 1 51% Offices Target The Edge 100% 65% 50-60% Burj Daman 77% DHCC49 80% DHCC25 67% Residential Target Binghatti Terraces 92% 16% 15-20% Arabian Oryx House 88% Remraam Residential 74% Alter
Slide 12: ENBD REIT's valuations remain under pressure
ENBD REIT’s valuations remain under pressure 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 9/30/2019 12/31/2019 3/31/2020 Office Residential Alternative Total Source: ENBD REIT as at 31st
Slide 13: ENBD REIT's office and alternative portfolios impacted
ENBD REIT’s office and alternative portfolios impacted Office valuations Residential valuations Alternative valuations 100 40 45 90 -1% -13% 40 35 80 35 70 -2% 30 -33% +1% USD m USD m USD m 30 60 -9% 25 25 -32% 50 20 20 +40% 40 -7% 15 30 15 -41% 20 -11% 10 10 31/12/17 31/12/18 31/12/19 31/3/17 30/6/
Slide 14: 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) 78m
Slide 15: 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) 27m 27m 14m 67m 410m % of portfolio value 7% 6% 3% 16% 100% Net
Slide 16: 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) 33m 23m 21m 77m 410m % of portfolio value 8% 6% 5% 19% 100% Net leasable area (
Slide 17: Financials
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Slide 18: Financial summary: 31st March 2020
Financial summary: 31st March 2020 • Net rental income / FFO down 10.7% year on year – improved by 19% in H2 due to lower costs, especially on debt following the refinancing in H1 • Total payments to shareholders for the year at 91% of FFO • Gross income down 8.8% year on year • USD 40m of unrealise
Slide 19: Financial performance: April – March 2020
Financial performance: April – March 2020 50,000,000 38,171,997 40,000,000 34,817,373 30,000,000 20,000,000 10,939,022 12,364,742 10,000,000 Apr - Mar - 2019-2020 USD (10,000,000) (9,349,128) Apr-Mar (20,000,000) 2018-2019 (30,000,000) (23,878,351) (21,713,870) (25,807,255) (29,456,465) (40,000,000)
Slide 20: Breakdown of total expenses: 31st March 2020
Breakdown of total expenses: 31st March 2020 • Increased finance costs due to higher profit rates and additional drawdown • Refinancing expected to bring finance costs down in the future Apr-Mar Apr-Mar USD Variance USD 2019-2020 2018-2019 Gross income 34,817,373 38,171,997 (3,354,624) Operating Fun
Slide 21: Appendix
Appendix
Slide 22: Financial performance - statement of financial position
Financials Financial performance - statement of financial position (USD) 31st Mar 2020 31st Mar 2019 Investment Properties 410,155,186 450,322,080 IFRS Adjustment and Right of Use Assets 12,310,613 - Cash and Cash Equivalent 13,701,144 15,754,585 Trade and Other Receivables 6,284,816 3,926,006 Total
Slide 23: Financial performance - statement of comprehensive income
Financials Financial performance - statement of comprehensive income (USD) Full Year Full Year 31st Mar 2020 31st Mar 2019 Rental Income 34,767,166 38,040,334 Profit on Deposits 50,207 131,663 Total Income 34,817,373 38,171,997 Operating Expenses (6,732,993) (8,240,625) Operating Income 28,084,380 2
Slide 24: Contact us
Contact us General Enquiries & Investor Relations ENBDREITIR@emiratesnbd.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.com +971 (0)4 509 3029 Media George Allen george.allen@instinctif.c
Slide 25: 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 26: Thank you
Thank you www.enbdreit.com