The real estate fund ENBD REIT is shelling out lower interim dividends for the April to September period, reserving cash for future property acquisitions.
Dubai , Dubai
27 November 2020, 12:00 AM
12 December 2020, 12:00 AM
Dubai real estate fund ENBD REIT is paying lower interim dividend to save up on cash. The latest dividend will be $4.85 million (or $0.0194 a share) and which is 4.9 per cent lower than what was paid in the six months up to March 31, 2020.
The fund manager said in a statement: It was also done to "accommodate a cash reserve for navigating adverse market conditions." The latest dividend represents 80 per cent of the net rental income generated by assets in its portfolio.
The proposed interim dividend is subject to a share capital reduction approved by shareholders at the last AGM (annual general meeting) in July and is pending approval from DIFC Courts.
Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said in a statement, "As we face significant pressure on valuations and rental income – resulting directly from the impact of the pandemic on the local business environment – we remain focused on managing down operating costs while at the same time upgrading our assets to enhance leasability."