ENBD REIT is a closed-ended DIFC investment company that was formed by Emirates NBD Asset Management Limited (the Fund Manager) to invest in a diversified portfolio of Shari’a compliant real estate, with a primary focus on the UAE. ENBD REIT is managed by the Emirates NBD Asset Management, an award winning asset manager in the UAE.
ENBD REIT is a Real Estate Investment Trust established with the objective of generating a regular dividend income stream for investors, typically derived from income from investment properties, usually in the form of rent, with the additional opportunity for capital appreciation and increases in the value of the equity.
The Fund Manager, Emirates NBD Asset Management, is one of the leading asset managers in the GCC region with approximately US$ 6.1 billion assets under management as at 31st December 2021. It is a wholly owned subsidiary of Emirates NBD Bank PJSC, is based in the Dubai International Financial Centre (DIFC) and regulated by the Dubai Financial Services Authority (DFSA). The Fund Manager provides a wide range of investment solutions, from in-house managed funds to tailor-made discretionary solutions. It manages funds across a variety of asset classes, including MENA equity and global fixed income, global risk profiled solutions, real estate, and a wide range of Shari’a compliant instruments, structured to cater for diverse risk appetites.
ENBD REIT invests in a wide range of properties, with a primary focus on the UAE, with the aim of providing consistent income generation to shareholders. Prior to listing on Nasdaq Dubai, Emirates Real Estate Fund, the predecessor to ENBD REIT, had since inception in 2005 provided investors with a regular and stable source of income by way of annual dividends (with limited exceptions) and long-term capital appreciation in net asset value per share.
What is a REIT?
A REIT is a real estate investment trust. A number of jurisdictions around the world recognize, permit and regulate REITs and the DIFC is one such jurisdiction. In the DIFC, REITs are a category of ”Property Funds”, as defined in the DFSA’s Collective Investment Rules. A DFSA regulated REIT is a fund that invests primarily in income-generating real estate and distributes to its shareholders at least 80% of its audited annual net income.
The objective of a REIT is to generate a regular dividend income stream for investors typically derived from income from investment properties, usually in the form of rent, with the additional opportunity for capital appreciation of the underlying assets and increases in the value of the equity.
REITs are typically managed by an external executive management team which identifies the properties to acquire, sell or hold and manages the assets of the REIT. This management team then manages the properties, often through the use of third party property managers, with the aim of maximising the potential returns in line with the REIT’s strategy. Some REITs may also develop and redevelop properties from time to time.
