Slide 1: Emirates REIT FY 2017 earnings call
EMIRATES REIT FY 2017 earnings call
Slide 2: Speakers
SPEAKERS Sylvain Vieujot Remi Ishak CEO CFO Managed by Equitativa 2
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS 10.6% total return 5.7% increase in NAV to USD 1.74/share Dividends of USD 0.08/share 31.2% increase in property operating income to USD 47 million 63.7% growth in FFO to USD 18.6 million 72.8 % flow-through from property income to FFO Strategic milestone: USD 400 million Sukuk
Slide 4: Operational Highlights
OPERATIONAL HIGHLIGHTS Portfolio value surpassed the AED 3 billion mark (USD 860 million) Completion and delivery of fitted out floors in Index Tower Delivery of British Columbia Canadian School Acquisition of European Business Center Managed by Equitativa 4
Slide 5: Annualized Rent per Property
ANNUALIZED RENT PER PROPERTY Managed by Equitativa 5
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 7: Strong Property Income Growth
STRONG PROPERTY INCOME GROWTH TOTAL PROPERTY INCOME (USD M) +20% 16.7 60.6 15.6 14.4 14.4 2.1 6.6 13.9 1.7 50.7 12.7 1.4 1.3 1.5 5.4 11.7 11.9 1.3 1.3 1.3 54.0 13.9 14.6 13.0 12.6 12.9 45.3 10.4 10.6 11.4 FY 2016 FY 2017 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Service fee & o
Slide 8: Strong Rental Income Conversion to FFO
STRONG RENTAL INCOME CONVERSION TO FFO FFO MOVEMENT (USD M) 11.3 Managed by Equitativa 8
Slide 9: Strong FFO Growth
STRONG FFO GROWTH +64% FFO* (USD M) 6.3 18.6 4.2 4.1 4.0 3.6 11.3 2.8 2.8 2.2 FY 2016 FY 2017 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 * Excluding Sukuk Cost Managed by Equitativa 9
Slide 10: Balance Sheet Overview
BALANCE SHEET OVERVIEW USD 948.7 USD 948.7 21.3* 29.7*** 67.9** IN USD M 31 DEC 17 31 DEC 16 CHANGE INVESTMENT PROPERTY 859.6 752.7 +14.2% 397.3 Debt TOTAL ASSETS 948.7 832.5 +14.0% EQUITY 521.6 493.4 +5.7% LIABILITIES 427.1 339.0 +26.0% 859.6 Investment SUKUK / Property 397.3 313.6 +26.7% ISLAMIC F
Slide 11: Summary: Portfolio Value
SUMMARY USD 860m 204,235 m2 PORTFOLIO VALUE NET LEASABLE AREA USD 522m 84.5% NET ASSET VALUE OCCUPANCY Portfolio Value USD 1.74 per share 8.0 years NET ASSET VALUE WAULT(1) 10 Properties 358 tenants NAV per share is calculated by the REIT administrator. Growth rates are adjusted for dividends and As
Slide 12: Operational Highlights
OPERATIONAL HIGHLIGHTS
Slide 13: Index Tower
INDEX TOWER Growing interest and popularity Office occupancy raised by 8.7% on y-o-y basis 3 fitted-out floors completed by Q1 2018 Index Mall under fit-out, tenants started fit-out Managed by Equitativa 13
Slide 14: British Columbia Canadian School
BRITISH COLUMBIA CANADIAN SCHOOL Phase 1 completed in time on budget for 2017/18 school year Phase 2 completion expected in September 2018 Managed by Equitativa 14
Slide 15: European Business Center Dubai
EUROPEAN BUSINESS CENTER DUBAI Strategic location, mixed use commercial property, ground + 3 floors 92% occupancy rate Estimated un-levered IRR over 10% Managed by Equitativa 15
Slide 16: Strategic Milestone Sukuk Issuance
STRATEGIC MILESTONE SUKUK ISSUANCE ENTERED NEXT PHASE OF THE REIT GROWTH CYCLE GROWTH CYCLE Replace amortizing loans with fixed-rate bullet funding Remove variable profit-rate risk Extend the debt maturity profile Establish profile in international debt capital markets LEADING TO Improved liquidity
Slide 17: Yield Curve
YIELD CURVE SOURCE: BLOOMBERG Managed by Equitativa 17
Slide 18: Share Volume Improvement
SHARE VOLUME IMPROVEMENT 2016 2017 Managed by Equitativa 18
Slide 19: Questions & Answers
QUESTIONS & ANSWERS