ENBD REIT, a shari'a-compliant real estate investment trust based in the UAE, said its property portfolio value stood at $459 million for the six-month period ended September 30, with diverse holdings totalling 11 properties across the office, residential and alternative real estate sectors.

A real estate investment trust managed by Emirates NBD Asset Management Limited, the ENBD REIT stated that its net asset value (NAV) as of September 30 stood at $285 million ($1.12 per share) compared to $289 million the previous quarter.

The slight decline was a result of valuation losses driven by soft real estate market conditions, it stated.

Gross yield on the portfolio held steady on the full year period ended March 31, 2018, at 8.3 per cent, following successful efforts to lease units in the office and residential portfolio.

Funds from operations for the six-month period were $6.9 million, up 42 per cent on the first half of 2017/2018. Occupancy across the portfolio remains strong at 90 per cent, said the top UAE lender.

Anthony Taylor, the head of real estate at Emirates NBD Asset Management, said: "While our NAV has come under pressure due to valuation losses resulting from challenging market conditions, these results reflect our success in safeguarding income from the portfolio."

"Gross yield remains stable, and we have achieved an annualized net yield on NAV of 4.89 per cent, which is a 13 per cent increase on the previous year," noted Taylor.

"Meanwhile, we continue to explore solutions for adding value to shareholders. We are ready to launch a share buyback programme, and the proposed capital reduction, if passed, will create a distributable reserve that will enable us to consistently deliver dividend income to shareholders from rental income received, regardless of market headwinds and movements in valuations," he added.

Impressed with the results, the board has proposed to pay next month an interim dividend of $0.0270 per share from the net rental income generated during the period, subject to approval by shareholders of a reduction of capital at the general meeting on November 27.

The proposed dividend payment will total $6.9 million, which equates to a yield of 4.82 per cent on NAV per share.

ENBD REIT also announced its intention to commence a share buyback programme, also subject to the passing of the Special Resolution concerning the Reduction of Capital, as well as the relevant regulatory approvals.

The programme is part of its commitment to adding value to shareholders holding stock at current discounted levels and aims to positively impact liquidity, it added.-TradeArabia News Service