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Page 1: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com 1

Page 2: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com

NAV Quarterly Update Conference Callas at 30th June 2018

Page 3: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com

Asif Siddique

Chief Financial Officer

ENBD REIT

Anthony Taylor

Head of Real Estate

ENBD REIT

Presenting team

NAV Quarterly Update Conference Call as at 30th June 2018 3

Page 4: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com NAV Quarterly Update Conference Call as at 30th June 2018

SnapshotAs at 30th June 2018

Portfolio property value

USD 463mProperties

11

Offices: 64%

Residential: 20%

Gross yield^

8.4%LTV*

37%Occupancy

90%

Al Thuraya 1

Burj Daman

DHCC 49

DHCC 25

Binghatti Terraces

Arabian Oryx House

Remraam

WAULT 3.47 years

Uninest

Alternative: 16%

South View School

4

The Edge

* Loan-to-value on GAV ^ on property portfolio (gross rental revenue / portfolio value)

Souq Extra Retail Centre

Office: 2.35 years

Residential: 0.70 years

Alternative: 11.24 years

Page 5: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com

FY2018 payments to shareholders

NAV Quarterly Update Conference Call as at 30th June 2018 5

Payments made to shareholders relating to

FY ending 31st March 2018USD

% of NAVUSD 300m

% of share priceUSD 252m

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 June 2018) 8,725,966 2.91% 3.46%

Total paid to shareholders 21,725,874 7.24% 8.63%

Page 6: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com

Post-listing performance

NAV Quarterly Update Conference Call as at 30th June 2018 6

DateProperty portfolio

valueNAV

NAV per share

Dividend per share

Dividend % on NAV*

Dividend % on Share

PriceShare 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 460m USD 300m USD 1.18 - - - USD 0.99

30th Sep 2017 USD 353m USD 295m~ USD 1.16~ - - - USD 1.00

30th Jun 2017 USD 352m USD 302m* USD 1.18 USD 0.0382 3.24% 3.86% USD 1.08

31st Mar 2017 USD 315m USD 297m USD 1.17 - - - USD 1.17

* Based on quarter end cum-dividend NAV~ Dividend payment made in this period ͌ Dividend payment and return of capital made in this period (totaling USD 12,008,860 or USD 0.0472 per share)

Page 7: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com

31st Dec 2016 USD

0.1998 2.92%

31st Mar 2017 No dividend

30th Jun 2017 USD

0.0382 3.24%

30th Sep 2017 No dividend

31st Dec 2017 No dividend

31st Mar 2018 USD

0.0129 1.09%

30th Sep 2018

Interim dividend

31st Mar 2019 Final dividend

7

• 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 forward, ENBD REIT intends to pay dividends semi-annually as at March and September quarter ends

Dividend policy

NAV Quarterly Update Conference Call as at 30th June 2018

Dividend % figures are based on cum-dividend NAV per share

Page 8: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com

NAV highlights

NAV Quarterly Update Conference Call as at 30th June 2018

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 - includes cash position, excludes valuation gain/loss ˄ Q-o-Q annualized

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Page 9: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com NAV Quarterly Update Conference Call as at 30th June 2018

Capital structureas at 30th June 2018

37%

63%

Existing finance terms

• Profit only• Matures 2021• 3-month EIBOR + 3.0%• Repayment:

• 10% end of year 4• 90% end of year 5

Further financing available

• Available drawdown remaining on existing facility: USD 22m

• New facility to be sourced from the market

• Target LTV of 45%

DebtEquity

Equity Debt LTV

USD 289m USD 169m 37%

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Page 10: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

Portfolio

Page 11: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com

Portfolio overview and diversificationBy sector as % of portfolio

NAV Quarterly Update Conference Call as at 30th June 2018 11

Office 64%

Residential 20%

Alternative 16% Education 3%

Student accommodation 8%

Retail 5%

Page 12: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com

Portfolio characteristics

NAV Quarterly Update Conference Call as at 30th June 2018

86%

100%

74%

86%

90%

96%

89%

76%

100%

100%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Al Thuraya 1

The Edge

Burj Daman

DHCC49

DHCC25

Binghatti Terraces

Arabian Oryx House

Remraam

Uninest

Souq Extra

South View School

Strong occupancy of 90% across the portfolio

12

Offices

64%

Residential

20%

Alternative

16%

Target

50-60%

Target

20-25%

Target

25-35%

Page 13: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com

Asset snapshot

NAV Quarterly Update Conference Call as at 30th June 2018

Al Thuraya 1Media City

Acquired: Nov 2006

The EdgeDubai Internet

CityAcquired: Oct

2017

Burj DamanDIFC

Acquired: Jun 2015

DHCC 49Healthcare CityAcquired: Apr

2007

DHCC 25Healthcare City

Acquired: Jul 2007

Overall Office

Portfolio

Overall Portfolio

Market value (USD) 90m 81m 68m 31m 25m 295m 463m

% of portfolio value 20% 17% 15% 7% 5% 64% 100%

Net leasable area (Sq. Ft.)

208,565 92,208 87,618 80,808 71,034 540,233 1,293,017

Occupancy rate 86% 100% 74% 86% 90% 87% 90%

WAULT (years) 0.90 3.21 3.48 2.08 2.14 2.35 3.47

Gross rental yield 10.1% 7.3% 6.1% 9.7% 10.2% 8.4% 8.4%*

Office

* Annual contractual rental; excludes cash and debt (gross rental revenue / portfolio value)

13

Page 14: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com

Asset snapshot

NAV Quarterly Update Conference Call as at 30th June 2018

Binghatti TerracesSilicon Oasis

Acquired: May 2016

Arabian Oryx HouseBarsha Heights

Acquired: Oct 2014

RemraamDubailand

Acquired: Sep 2015

Overall Residential Portfolio

Overall Portfolio

Market value (USD) 37m 35m 21m 93m 463m

% of portfolio value 8% 8% 4% 20% 100%

Net leasable area (Sq. Ft.) 178,907 133,432 112,154 424,493 1,293,017

Occupancy rate 96% 89% 76% 89% 90%

WAULT (years) 0.76 0.76 0.48 0.70 3.47

Gross rental yield 9.2% 8.4% 6.6% 8.3% 8.4%*

Residential

* Annual contractual rental; excludes cash and debt (gross rental revenue / portfolio value)

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Page 15: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com

Asset snapshot

NAV Quarterly Update Conference Call as at 30th June 2018

UninestDubailand

Acquired: May 2017

Souq Extra Retail Centre

Acquired: Dec 2017

South View School

RemraamAcquired: Aug

2017

Overall Alternative

PortfolioOverall Portfolio

Market value (USD) 35m 25m~ 15m^ 75m 463m

% of portfolio value 8% 5% 3% 16% 100%

Net leasable area (Sq. Ft.) 160,264 36,027 132,000 328,291 1,293,017

Occupancy rate 100% 100% 100% 100% 90%

WAULT (years) 5.91 3.92 35.19 11.24 3.47

Gross rental yield 7.6% 9.2% 9.0% 8.3% 8.4%*

Alternative

~ Further commitment of USD 35m for Phase 2^ Total construction cost once completed:USD 15m* Annual contractual rental; excludes cash and debt (gross rental revenue / portfolio value)

15

Page 16: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

Financials

Page 17: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com NAV Quarterly Update Conference Call as at 30th June 2018

Funds from operations (FFO)as at 30th June 2018

17

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

FFO

Net income yield Valuation gain/loss

FFOUSD 3,250,763

+ 1.12% *Net IncomeUSD 839,905

+0.29% *

Valuation gain/loss USD (2,410,858)

- 0.83% *

See Appendix 2 for Statement of Comprehensive Income* % of NAV for the quarter

Page 18: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com NAV Quarterly Update Conference Call as at 30th June 2018

Total incomeas at 30th June 2018

9,584,893

-2,410,858

7,174,035

7,541,811

2,577,471

10,119,282

-4,000,000

-2,000,000

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Jun-18

Jun-17

18

USD

* Includes gross rental income and profit on Islamic deposits

Gross income*

Valuation gain/loss

Total income

Page 19: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com 19

Total expensesas at 30th June 2018

NAV Quarterly Update Conference Call as at 30th June 2018

Operating expenses, (2,210,894)

Finance cost, (2,480,782)

Fund expenses, (1,642,454)

Net income, 839,905

USD

Margin =12%*

See Appendix 2 for Statement of Comprehensive Income* Includes valuation losses in the quarter

USD Q1 Jun-18 Q1 Jun-17 Variance

Gross income 9,584,893 7,541,811 2,043,082

Valuation gain/(loss)

(2,410,858) 2,577,471 (4,988,329)

Total expenses (6,334,130) (4,953,995) (1,380,135)

Net income 839,905 5,165,287 (4,325,382)

FFONet Income(excl. valuation)

3,250,763 2,587,816 662,947

Page 20: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

Appendix

Page 21: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com NAV Quarterly Update Conference Call as at 30th June 2018

Statement of financial position (USD)Appendix 1

21

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 other payables 13,844,836 16,784,784

Total current liabilities 13,844,836 16,784,784

Non-current liabilities

Mudaraba payable 168,254,833 168,254,833

Payable for investments 866,728 866,728

Total non-current liabilities 169,121,561 169,121,561

Total liabilities 182,966,397 185,906,345

Net Asset Value 289,064,711 300,261,580

Page 22: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com NAV Quarterly Update Conference Call as at 30th June 2018 22

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

Operating expenses (2,210,894) (1,717,643) (1,578,132)

Operating income 4,963,141 3,779,370 8,541,150

Other expenses (542,245) (412,421) (1,047,390)

Management fee (1,100,209) (1,187,096) (950,169)

Fund expenses (1,642,454) (1,599,516) (1,997,559)

Finance Costs (2,480,782) (1,787,823) (1,3,78,304)

Net income 839,905 392,031 5,165,287

Net Profit Margin 12% 7% 51%

Statement of comprehensive income (USD)Appendix 2

Page 23: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com

General [email protected]+971 (0)4 509 3010

Investor RelationsJulia [email protected]+971 (0)4 509 3016

Company SecretaryJean Kenny [email protected]+971 (0)4 428 9221

Tenants/LeasingBen [email protected]+971 (0)4 509 3015

MediaGeorge [email protected]+971 (0)4 369 9353

Contact us

NAV Quarterly Update Conference Call as at 30th June 2018 23

Page 24: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com

Disclaimer

NAV Quarterly Update Conference Call as at 30th June 2018

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 Information is not intended to serve as investment advice and should not be used as a substitute for independent judgement and advice. This Information has been obtained from or is based upon sources believed to be reliable, and is believed to be fair and not misleading. The Information contained in this presentation is subject to change without notice. None of ENBD REIT (CEIC) Limited (“ENBD REIT” or the “Fund”), Emirates NBD Asset Management Limited (“Emirates NBD AM”), Emirates NBD Group nor any of their respective directors, employees or agents (the “ENBD Parties”) give any representation or warranty as to the reliability, accuracy or completeness of the Information, nor, to the extent permitted by relevant laws and regulations, do they accept any responsibility or liability arising in any way (including by negligence) for errors in, or omissions from, the Information. None of the ENBD Parties give any undertaking to provide additional information to update this material, or to correct any inaccuracies which may become apparent. This document is provided for informational and illustrative purposes only. It does not constitute a solicitation, recommendation or offer to buy or sell any shares or other securities of the Fund, any specific investment product or to subscribe to any specific investment management or advisory service. Prospective investors in ENBD REIT should obtain and carefully read the Fund’s most recent prospectus and supplement, if any, as well as seek separate, independent financial advice prior to making an investment in ENBD REIT in order to fully assess the suitability, lawfulness and risks involved.

This presentation is not for distribution to the general public but for intended recipients only and may not be published, circulated, reproduced or distributed in whole or part to any other person without the written consent of Emirates NBD AM. This presentation is directed to persons authorised to invest in ENBD REIT and residing in jurisdictions where the Fund is authorised for distribution or where no such authorisation is required. Investment in ENBD REIT is intended only for investors who understand the risks involved in investing in the Fund and can withstand any potential loss therefrom. Neither ENBD REIT’s historical performance nor that of its predecessor fund, Emirates Real Estate Fund Limited, is indicative of the future performance of the Fund and should not be used as a proxy for the future or likely performance of the Fund. The value of the investment in and the income from ENBD REIT can fall as well as rise as the Fund is subject to investment risks, including the possible loss of the whole of the principal amount invested. The Information does not have any regard to the specific investment objectives, financial situation or the particular needs of any person.

All Shari’a compliant products and services are approved by the Shari’a Supervisory Board of Emirates NBD AM.

This Information has been prepared by Emirates NBD AM for ENBD REIT. Emirates NBD AM and ENBD REIT are regulated by the Dubai Financial Services Authority.

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Page 25: NAV Quarterly Update - ENBD REIT · Portfolio property value USD 463m Properties 11 Offices: 64% Residential: 20% Gross yield^ 8.4% LTV* 37% Occupancy 90% Al Thuraya 1 Burj Daman

www.enbdreit.com

Thank you