Staff Report
Dubai, UAE
ENBD REIT, the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced its full year results for the financial year ended March 31, 2025. ENBD REIT’s Net Asset Value stood at US$218.6 million or US$0.87 per share, compared to US$216 million for the previous quarter and US$195 million the previous year, a respective 1.4 percent Quarter-on-Quarter (Q-o-Q) and 12.3 percent Year-on-Year (Y-o-Y) increase.
ENBD REIT’s Board has proposed a final dividend of US$5 million or US$0.02 per share for the 6-month period ending March 31, 2025. This brings the total dividend payable to shareholders for the financial year to US$10.0 million, reflecting a 33.3 percent increase compared to the previous year.
The value of ENBD REIT’s property portfolio grew to US$395 million, up 0.4 percent Q-o-Q and 6.9 percent Y-o-Y, supported by proactive asset management and an agile leasing strategy across the portfolio. Occupancy was maintained at 95 percent, the highest level recorded by the REIT, up from 93 percent the previous year, reinforcing the strength of the leasing strategy and market demand for high-quality spaces. Strong performance was led by the office segment, with rental growth in line with market trends. On the residential side, near full occupancy was maintained, supported by ongoing lease optimisation following agreements made in the immediate post-pandemic period.
Funds From Operations (FFO), which supports dividend distributions and excludes non-cash valuation movements, increased to US$11.2 million from US$7.8 million a year earlier, a 45 percent Y-o-Y increase.
Samir Kazi, Head of Real Estate at Emirates NBD Asset Management, commented, “We are delighted with this year’s results. The improvement in FFO, dividends and NAV, portrays the effectiveness of our strategic and asset management initiatives, supported by a favourable market environment.
“Tangible results have been realized, and our focus remains on delivering consistent, risk-adjusted returns to shareholders through proactive portfolio management and operational efficiency. As market conditions continue to evolve, we are well positioned to sustain this momentum and drive further value creation.”
Gross income rose to US$37.5 million from US$34.6 million in the prior year, while net income, including non-cash valuation gains, increased significantly to US$33.7 million, up 61 percent Y-o-Y. This strong performance was driven by process efficiencies, resilient tenant demand, successful lease renewals, and strategic enhancements across the portfolio.
Operating expenses rose moderately by three percent Y-o-Y to US$7 million, largely due to higher utilities and maintenance costs associated with increased occupancy. Fund expenses increased by eight percent, in line with NAV-linked management fees. Finance costs declined by 8.1 percent Y-o-Y to US$13.2 million, further supporting overall earnings growth.
ENBD REIT continues to focus on maintaining high occupancy levels, strengthening asset performance, and improving operational efficiency, all while leveraging favourable market conditions to deliver sustainable long-term value to shareholders.
Ends
Also read: ENBD REIT announces US$202 mn NAV for second quarter
