NAV Quarterly Update Conference Call - ENBD REIT · McDonalds and Starbucks. Transaction highlights...
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www.enbdreit.com NAV Quarterly Update Conference Call as at 31 st December 2017
Transcript of NAV Quarterly Update Conference Call - ENBD REIT · McDonalds and Starbucks. Transaction highlights...
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NAV Quarterly Update Conference Callas at 31st December 2017
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Asif Siddique
Chief Financial Officer
ENBD REIT
Anthony Taylor
Head of Real Estate
ENBD REIT
Presenting team
ENBD REIT Investor Presentation as at 31st December 2017 2
www.enbdreit.com ENBD REIT Investor Presentation as at 31st December 2017
SnapshotAs at 31st December 2017
Portfolio property value
USD 460mProperties
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Offices: 63%
Residential: 21%
Gross yield^
8.4%Loan-to-Value*
36%
Occupancy
87%
Al Thuraya 1
Burj Daman
DHCC 49
DHCC 25
Binghatti Terraces
Arabian Oryx House
Remraam
WAULT
3.5 years
Uninest
Alternative: 16%
South View School
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The Edge
* on GAV ^ on property portfolio (gross rental revenue / portfolio value)
Souq Extra Retail Centre
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Post-listing performance
ENBD REIT Investor Presentation as at 31st December 2017 4
DateProperty portfolio
valueNAV*
NAV per share*
Dividend per share
Annualised dividend %
on NAV*
Annualised dividend % on Share
Price
Share price
31st Dec2017
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 292m USD 1.15 USD 0.0382 6.6% 7.1% USD 1.08
31st Mar 2017
USD 315m USD 297m USD 1.17 - - - USD 1.17
* On a dividend paying quarter, figures are based on ex-dividend NAV per share. Annualised period refers to ENBD REIT’s financial year, ending 31st March 2018
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NAV highlights for the quarter
ENBD REIT Investor Presentation as at 31st December 2017
*includes cash position
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31st December 2017
Property portfolio value USD 460m
Cash USD 15m
Gross Asset Value (GAV) USD 468m
NAV per share USD 1.18
Net Asset Value (NAV) USD 300m
Loan-to-Value (LTV) 36%
Gross yield on NAV* 12.12%
Net yield on NAV 6.7%
Number of shares in issue 254,401,340
Portfolio
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Footprint
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Asset snapshot
ENBD REIT Investor Presentation as at 31st December 2017
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 (AED) 333m 296m 250m 111m 91m 1,081m 1,689m
% of portfolio value 19% 17% 15% 7% 5% 63% 100%
Net leasable area (Sq. Ft.)
208,565 92,208 87,618 80,808 71,034 540,233 1,293,017
Occupancy rate 87% 100% 56% 88% 90% 84% 87%
WAULT (years) 0.74 3.69 3.67 2.00 2.57 2.50 3.50
Gross rental yield 10.4% 7.0% 5.2% 10.2% 10.0% 8.2% 8.4%*
Office
* Annual contractual rental; excludes cash and debt (gross rental revenue / portfolio value)
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Asset snapshot
ENBD REIT Investor Presentation as at 31st December 2017
Binghatti TerracesSilicon Oasis
Acquired: May 2016
Arabian Oryx HouseBarsha Heights
Acquired: Oct 2014
RemraamDubailand
Acquired: Sep 2015
Overall Residential Portfolio
Overall Portfolio
Market value (AED) 144m 139m 81m 364m 1,689m
% of portfolio value 8% 8% 5% 21% 100%
Net leasable area (Sq. Ft.) 178,907 133,432 112,154 424,493 1,293,017
Occupancy rate 95% 90% 60% 85% 87%
WAULT (years) 0.88 0.31 0.79 0.60 3.50
Gross rental yield 12.6% 8.0% 4.6% 9.0% 8.4%*
Residential
* Annual contractual rental; excludes cash and debt
(gross rental revenue / portfolio value)
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Asset snapshot
ENBD REIT Investor Presentation as at 31st December 2017
UninestDubailand
Acquired: May 2017
Souq Extra Retail Centre
Acquired: Dec 2017
South View School
RemraamAcquired: Aug
2017
Overall Alternative
PortfolioOverall Portfolio
Market value (AED) 126m 90m 55m 271m 1,689m
% 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% 87%
WAULT (years) 6.41 3.67 35.69 11.44 3.50
Gross rental yield 7.8% 9.2% 9.0% 8.5% 8.4%*
Alternative
* Annual contractual rental; excludes cash and debt
(gross rental revenue / portfolio value)
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Key tenants
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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 1 acquired for AED 84m.• Commitment to acquire the adjoining c.45,000 sq ft Phase 2 at completion,
with construction due to commence in Q1 2018. • Property to be managed by Souq Extra, with a rental guarantee provided
for the first two years following acquisition, at nil cost across both Phases. • The acquisition of Phase 1 takes ENBD REIT’s LTV up to 36%, which will
reach c. 40% upon the acquisition of Phase 2.• Property delivers a net return of 8% on cash and 11% on equity.
12ENBD REIT Investor Presentation as at 31st December 2017
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Recent acquisition
ENBD REIT Investor Presentation as at 31st December 2017
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 enjoy a central and easily accessible address within Dubai Internet City.
• 233 parking bays offering high parking-to-office ratios.
Transaction highlights
• The acquisition utilizes ENBD REIT’s existing Islamic debt facility, meaning that the property portfolio is running at an efficient Loan-to-Value (LTV) ratio of 32%.
• Property delivers a leveraged return on equity of 9%.• The entire asset will deliver a gross yield of 7.0% and a net yield of 6.6%.
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Financials
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Funds from operations (FFO)as at 31st December 2017*
* YTD period 1 April – 31st December 2017. See Appendix 2 for Statement of Comprehensive Income
7,541,811
2,577,471
10,119,2827,288,262
101,570
7,389,832
9,113,721
1,422,876
10,536,597
23,943,794
4,101,917
28,045,711
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
Gross income Unrealised gain Total income
Jun-17
Sep-17
Dec-17
YTD
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USD
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ENBD REIT’s expensesas at 31st December 2017*
ENBD REIT Investor Presentation as at 31st December 2017
5,765,675
4,738,188
4,932,854
12,608,995
USD
Margin = 45%
Operating expenses
Finance cost
Fund expenses
Net profit
* YTD period 1 April – 31st December 2017. See Appendix 2 for Statement of Comprehensive Income
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Capital structureas at 31st December 2017
36%
64%
Finance terms
• Profit only
• Matures 2021
• 3-month EIBOR + 2.5%
• Repayment:
• 10% end of year 4• 90% end of year 5
• Available drawdown remaining:
USD22m
• Fully drawn, LTV would be approx. 40%
DebtEquity
Equity Debt LTV
USD 300m USD 168m 36%
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Appendix
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Statement of financial position (USD)Appendix 1
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As at 31 Dec 2017 As at 30 Sep 2017 As at 30 Jun 2017
Investment properties 459,853,526 353,362,919 351,549,142
Cash and cash equivalent 15,178,076 63,025,827 71,241,221
Trade and other receivables 2,970,781 3,437,661 1,618,282
Total current assets 18,148,857 66,463,488 72,859,503
Total assets 478,002,383 419,826,407 424,408,645
Current liabilities
Trade and other payables 9,877,999 7,924,320 14,912,288
Total current liabilities 9,877,999 7,924,320 14,912,288
Non-current liabilities
Mudaraba payable 168,254,833 117,070,515 117,070,515
Total non-current liabilities 168,254,833 117,070,515 117,070,515
Total liabilities 178,132,832 124,994,835 131,982,803
Net Asset Value 299,869,551 294,831,572 292,425,842
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Statement of comprehensive income (USD)
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YTD ending Dec 2017
Quarter ending Dec 2017
Quarter ending Sep 2017
Quarter ending Jun 2017
Rental income 23,404,949 9,084,535 7,076,843 7,243, 571
Profit share 538,847 29,187 211,419 298,241
Net unrealised gain 4,101,918 1,422,876 101,571 2,577,471
Total income 28,045,714 10,536,598 7,389,832 10,119,283
Operating expenses 5,765,675 2,308,112 1,879,431 1,578,132
Operating profit 22,280,039 8,228,486 5,510,402 8,541,151
Operating Profit Margin 79% 78% 75% 84 %
Other expenses 2,043,410 389,152 698,852 955,406
Management fee 3,036,604 1,153,923 932,512 950,169
Fund expenses 5,080,014 1,543,075 1,631,364 1,905,575
Finance Costs 4,591,026 1,647,433 1,473,306 1,470,287
Net profit 12,608,996 5,037,978 2,405,732 5,165,289
Net Profit Margin 45% 48% 33% 51%
Appendix 2
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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
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Disclaimer
ENBD REIT Investor Presentation as at 31st December 2017
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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