ENBD Reit (CEIC) Plc, the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, on Wednesday announced the completion of its share buy-back programme.
The programme was implemented through the UAE-based broker Shuaa Securities LLC via the order book of Nasdaq Dubai, ENBD Reit said in a statement to Nasdaq Dubai.
Up to $3.5 million were raised for the programme to facilitate the acquisition of nearly 4.401 million shares.
The share buy-back programme, which was effective from 21 February 2019 until 30 September 2019, was executed at an earlier date on 9 September 2019.
The programme comes as part of ENBD Reit's strategy to realise value for shareholders holding equity.
Anthony Taylor, Head of Real Estate at Emirates NBD Asset Management, said: “The rationale for implementing the buy-back was to realise value for shareholders by repurchasing shares that were trading at a significant discount to the market valuations of our underlying assets.”
“Other benefits of the programme included improved liquidity for our stock and preventing disproportionate movements in the share price, which had been caused by small trades prior to the programme commencing. The buy-back did not result in an improved share price, which continues to be affected by soft real estate and equity market conditions, but we are pleased with its overall outcome and may look to continue it in the future,” he added.
ENBD REIT’s ability to pay dividends and acquire further assets were not affected by the programme.
