www.enbdreit.com

ENBD REIT and Institutional Real Estate in the UAE

Cityscape Talks: 11th September 2017

Tim Rose, Head of Real Estate

Emirates NBD Asset Management

http://www.enbdreit.com/

www.enbdreit.com

• A real estate investment trust (REIT) formed by Emirates NBD Asset Management

• Invests in a diversified portfolio of Shari'a compliant real estate, with a primary focus on the United Arab Emirates

• Listed on Nasdaq Dubai under ticker symbol ‘ENBDREIT’ and regulated by the Dubai Financial Services Authority (DFSA)

• Previously Emirates Real Estate Fund, a Jersey based open-ended fund

• Since inception in 2005, provided investors with a regular and stable source of income by paying a dividend semi-annually

• Achieved long-term capital appreciation in net asset value per unit

What is ENBD REIT?A long and consistent track record

2

Sector Fund of the YearMENA Fund Manager Performance Awards 2017

‘Best Real Estate Fund UAE’

Best Real Estate Fund UAEInternational Finance Magazine 2015

Real Estate Fund of the YearMENA Fund Manager Performance Awards 2016

Best Real Estate FundIslamic Business& Finance Awards 2013

www.enbdreit.com 3

SnapshotENBD REIT (CEIC) Limited

Portfolio property value

USD 352mProperties

8

Offices: 62%

Residential: 28%

Gross yield*

8.7%Loan-to-Value

29%Occupancy

86%

Al Thuraya 1

Burj Daman

DHCC 49

DHCC 25

Binghatti Terraces

Arabian Oryx House

Remraam

WAULT

2.3 years

Uninest

Alternative: 10%

*on property portfolio (gross rental revenue / portfolio value)

www.enbdreit.com 4

Portfolio characteristics

18.17 18.34

8.56 9.49

0.26 2.67

0.00

10.00

20.00

30.00

40.00

YE June 2017* Annual Contractual Rental

Growing annual income by sector (USDm)

62%

28%

10%

Diversified asset class (% by value)

ResidentialOffice Alternative

91%

56%

83%

85%

100%

98%

100%

100%

0% 20% 40% 60% 80% 100%

Al Thuraya 1

Burj Daman

DHCC49

DHCC25

Binghatti Terraces

Arabian Oryx House

Remraam

Uninest

Strong Occupancy

ResidentialOffice Alternative

*excludes sold assets in this period

www.enbdreit.com

Which areas are we focusing on?

Dubai Abu Dhabi Other Emirates

Development

Development to holdLimited to up to 30% of NAV

5

Investment strategy

Which sectors are we focusing on?

Office Residential Alternative

Focus is on good quality properties in the following sectors:

Office 50-60%Residential 25-35%Alternative 20-30%

Key focus points

Freehold or long-term leasehold titles

USD 30m+Aim to lengthen tenant lease termsTarget off-market, relationship driven transactions

The portfolio aims to be diversified across the UAE:

Dubai 50-75%

Abu Dhabi 10-20%

Other Emirates

www.enbdreit.com 6

REIT regulations

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.

Key elements of our regulations:

• ENBD REIT is required to distribute a minimum of 80% of audited net income

• LTV is limited to up to 50% of GAV

• Development projects are limited to up to 30% of NAV

• ENBD REIT would require a majority stake in all joint ventures

• Independence, both in terms of committees and related parties

• An external Fund Manager needs to be appointed

Establishing a REIT in the UAE

www.enbdreit.com 7

The UAE needs more REITs

The UAE needs more listed REITs

ENBD REIT (Nasdaq Dubai)

Market cap: USD 257m

Emirates REIT (Nasdaq Dubai)

Market cap: USD 285m

Why?

Saudi Arabia leads the field

Riyad REIT Fund (Tadawul)

Market cap: USD 605m

Aljazira Mawten REIT Fund (Tadawul)

Market cap: USD 274m

Jadwa REIT Alharamain Fund (Tadawul)

Market cap: USD 806m

Taleem REIT (Tadawul)

Market cap: USD 425m

Al Maather REIT Fund (Tadawul)

Bahrain has one REIT

Eskan Bank REIT (Bahrain Bourse)

Saudi REITs are entitled to hold up to 30% of their assets outside of the Kingdom. If more REITs in the UAE are not established, attractive institutional real estate assets will be acquired by Saudi REITs

www.enbdreit.com 8

What makes REITs attractive?

Opening real estate to investors

Equity opportunities previously available only to large investors capable of acquiring whole assets

Bringing greater liquidity to the real estate and development sector by widening the spectrum of potential investors

Key benefits

Bringing liquidity to the sector

REITs offer real estate companies access to investors via capital markets, to fund acquisitions and projects

REITs offer liquidity to investors: buying into a portfolio at a lower price than directly acquiring assets

Diverse portfolios mitigate investment risk and investors can exit or shorten a position at the time of their choosing

Governance and regulation

REITs provide a stricter regulatory framework than direct investment in a real estate asset or fund

REITs are obliged to adhere to minimum dividend payment requirements

A defined governance structure (Eg. Board of Directors; Investment Committee, etc.) mean diligent and scrupulous deployment of capital

www.enbdreit.com 9

In summary

• The UAE has established a regulatory environment that is ripe for the growth of REITs

• REITs deliver a regular dividend income stream, the opportunity of capital appreciation on underlying assets and increases in value of equity

• Saudi Arabia is currently leading the charge in the development of a REIT market

• REITs open the real estate market to investors who previously had difficulty accessing it, while also bringing liquidity into sector

• Governance and regulation of REITs mitigates risk associated with direct real estate investment or investment through funds

www.enbdreit.com

Thank you

http://www.enbdreit.com/