ENBD Reit sees NAV drop in last quarter

Emirates NBD’s sharia-compliant real estate fund, ENBD REIT, has announced that its net asset value (NAV) dropped from US$230 million to $215 million in the last quarter. The decline was attributed to the pressure on portfolio valuations as a result of a softening property market and macroeconomic uncertainty.  A leasing strategy to cater for tenants’ demands during the pandemic has helped to safeguard occupancy but not entirely mitigate market conditions, ENBD Reit said. As a result of the valuation losses, the fund’s loan to value ratio has increased to 48% from 44% in the previous quarter.  The fund has also executed a sharia-complaint profit rate swap with Mashreq Bank on its $109 million facility which will hedge 56% of its outstanding debt.  “Our priority this year is to manage down costs, and maintain them at optimal levels. This has already been achieved in a number of areas, in both our property portfolio and at fund level, having announced earlier this year the reduction of our management fees and discounts on Board and Committee remuneration,” said  Anthony Taylor, head of real estate at Emirates NBD Asset Management.  “Given a lower interest rate environment, we have a compelling opportunity to reduce our finance costs – the Reit’s single largest expense – into the future. We have taken that opportunity by agreeing a profit rate swap with Mashreq Bank, which will hedge more than half of our total outstanding debt until June 2023,” added Taylor. © 2020 funds global mena

Sponsored Profiles

There’s no doubt that Africa has been seen increasingly as an attractive prospect for inbound investment in recent years, with investors seeing real potential in the continent, particularly in the private equity, infrastructure and real estate asset classes, as it experiences strong economic growth.

Plausible explanations exist for why low-volatility stocks perform better than their high-volatility counterparts.

Aberdeen Asset Management has set up its first Middle East office in the newly established Abu Dhabi Global Market. Andrew Paul, senior executive officer, explains why.

A recent sovereign bond issue from Saudi Arabia underlines the appeal of emerging market investing. What must investors consider when allocating to this asset class? Firas Mallah of BMO Global Asset Management shares his views.

Executive Interviews

INTERVIEW: ‘Financing is the blood of Iran’s economy’

Amid a fresh wave of American sanctions, Romil Patel spoke to Meysam Hamedi, director of financial markets and instruments at Iran’s Securities & Exchange Organization (SEO).

INTERVIEW: Totally mega

In 2016, global consulting firm PWC forecast the emergence of five global ‘megatrends’ in the next two decades. Stephen Anderson, its Middle East clients and markets leader, talks about their...

INTERVIEW: Protecting the investment

Rasmala’s trade finance fund recently passed $100 million in assets. Doug Bitcon, head of credit strategies, explains why he has to be hands-on.

EXECUTIVE INTERVIEW: A natural interest in the topic

Since 2016, Guillermo Ortiz has been a chairman of Latin America’s BTG Pactual. The former central banker of Mexico talks to Nick Fitzpatrick.


Middle East Investor Roundtable 2020: Dimensions of diversification

Investors in the Middle East consider the tools that will be needed to navigate the Covid-19 crisis, the continued appetite for dividend and why it’s all about tech. Chaired by Romil Patel.

South Africa asset management roundtable: Global rebound on ice

Experts discuss the investment implications of the coronavirus pandemic, a delayed rebound in global growth and dealing with South Africa’s energy issues head on. Chaired by Romil Patel in Cape Town.

South African roundtable: Taking the bull by the horns

Our panel discusses Chinese investment in Africa, financial institutions’ contribution to economic sustainability and regulatory concerns. Chaired by Romil Patel in Cape Town.

ROUNDTABLE: Hooked to the global caravan

With the MENA region at a tipping point, our panellists talk about economic diversification, the impact of regulation and the delayed Saudi Aramco listing. Chaired by Romil Patel in Dubai.