nav quarterly update - enbd reit · portfolio property value usd 463m properties 11 offices: 64%...
TRANSCRIPT
www.enbdreit.com 1
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
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
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%
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)
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
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
8
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%
9
Portfolio
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%
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%
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
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)
14
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
Financials
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
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
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
Appendix
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
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
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
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.
24