Emirates Reit (ceic) Plc · NASDAQDUBAI:REIT
Emirates Reit (ceic) — FY2021 Earnings Presentation
35 slides from Emirates Reit (ceic)'s earnings presentation, April 2022
Slide 1: FY 2021 Results Presentation
FY 2021 RESULTS PRESENTATION
Slide 2: Disclaimer
INTRODUCTION DISCLAIMER PAGE 2 This presentation has been prepared by Equitativa Such ‘forward-looking’ statements can sometimes, Therefore they should be regarded with caution. It is important to consider the fact that some fund (Dubai) Limited (“Equitativa” or the “Manager”), as but not always, be
Slide 3: Speakers
INTRODUCTION SPEAKERS PAGE 3 Sylvain Vieujot Thierry Leleu Alain Debare Sheikh Muhammed Moeen Deputy Executive Chairman Chief Executive Officer Group Head of Real Estate Finance Director
Slide 4: Table of Content
INTRODUCTION TABLE OF CONTENT PAGE 4 1 2 3 APPOINTMENT OF CEO & BOARD MEMBERS FY 2021 HIGHLIGHTS MARKET OVERVIEW 4 5 6 PORTFOLIO & ASSET MANAGEMENT REVIEW CONSOLIDATED FINANCIAL STATEMENTS REVIEW CONCLUSION
Slide 5: Appointment of CEO & Board Members
APPOINTMENT OF CEO & BOARD MEMBERS
Slide 6: Appointment of CEO & Board Members
INTRODUCTION APPOINTMENT OF CEO & BOARD MEMBERS PAGE 6 THIERRY LELEU DR. FAISAL ALAYYAN SIMON TOWNSEND • Appointed CEO of Equitativa • Appointed to the Investment Board • Appointed to the Oversight Board as from April 27, 2022 of the REIT as from April 2022 of the REIT as from April 2022 • Will be r
Slide 7: FY 2021 Highlights
FY 2021 HIGHLIGHTS
Slide 8: A Year of Operational Resilience Amidst Continued Macro Uncertainty
A YEAR OF OPERATIONAL RESILIENCE AMIDST FY 2021 HIGHLIGHTS PAGE 8 CONTINUED MACRO UNCERTAINTY NET PROPERTY INCOME (NPI) OPERATING PROFIT FUNDS FROM OPERATIONS (FFO) COMPREHENSIVE INCOME EPS 7.7% 59.3% 36.4x 1.3x 1.3x 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 USD 52.0m USD 56.0m USD 29.3m USD
Slide 9: A Year of Operational Resilience Amidst Continued Macro Uncertainty
A YEAR OF OPERATIONAL RESILIENCE AMIDST FY 2021 HIGHLIGHTS PAGE 9 CONTINUED MACRO UNCERTAINTY TOTAL ASSETS ISLAMIC FINANCING GEARING / LTV NET ASSET VALUE ( NAV/SHARE) 6.3% 3.0% 5.4% 28.3% 2020 2021 2020 2021 2020 2021 2020 2021 USD 803.4m USD 853.9m USD 495.6m USD 480.8m 61.7% 56.3% USD 0.74 / sh U
Slide 10: Property Revaluation Gain - Year on Year Valuation Up by 7.5%
PROPERTY REVALUATION GAIN - FY 2021 HIGHLIGHTS PAGE 10 YEAR ON YEAR VALUATION UP BY 7.5% (USD’ 000) 31 DEC 2021 31 DEC 2020 GAIN VARIANCE % TOTAL PORTFOLIO MARKET VALUE 762,134 708,930 53,204 7.5% TOTAL PORTFOLIO MARKET VALUE (ADJUSTED) * 762,134 705,471 56,664 8.0% * Adjusted : for like for like –
Slide 11: Closure of DFSA Investigations
CLOSURE OF DFSA INVESTIGATIONS FY 2021 HIGHLIGHTS PAGE 11 EQUITATIVA SETTLEMENT CLOSES DFSA INVESTIGATIONS • In order to bring all ongoing investigative actions to a close, Equitativa agreed to a Settlement Agreement with the DFSA in December 2021 • Equitativa agreed to: - Pay USD 210,000 for report
Slide 12: Market Overview
MARKET OVERVIEW
Slide 13: Macroeconomic Overview
MARKET OVERVIEW MACROECONOMIC OVERVIEW PAGE 13 • UAE’s real GDP soared 3.8% in 2021, claiming the highest GDP growth rate • Inflation is expected to return at a rate of 2% in 2022 after two consecutive in the region whilst exceeding expectations of international institutions, which years of deflatio
Slide 14: Office Market Performance & Supply
MARKET OVERVIEW OFFICE MARKET PERFORMANCE & SUPPLY PAGE 14 PERFORMANCE • In the last quarter of 2021, there have been a number of new entrants to the market that are either acquiring space or increasing their existing space to meet their requirements. However, the bulk of the leasing activity is com
Slide 15: Retail Market Performance & Supply
MARKET OVERVIEW RETAIL MARKET PERFORMANCE & SUPPLY PAGE 15 PERFORMANCE UAE, RETAIL RENTS, YOY% CHANGE TO Q4 2021 • The UAE retail market showed signs of recovery in 2021 with store-based sales standing at 183.32bn, up 6.6% from 2020 but however still 3.5% below the 2019 levels • Footfall however has
Slide 16: Portfolio and Asset Management Highlights
PORTFOLIO AND ASSET MANAGEMENT HIGHLIGHTS
Slide 17: Operational Highlights
OPERATIONAL HIGHLIGHTS PORTFOLIO & ASSET MANAGEMENT REVIEW PAGE 17 • Occupancy in the portfolio increased by 2.8 p.p to 71.8% as at December 31, 2021 • Occupancy in Index Tower has increased to 62% (+13 p.p. y-o-y) with a strong income growth in excess of 26% during 2021 • Headline rents across the
Slide 18: Operational Highlights
OPERATIONAL HIGHLIGHTS PORTFOLIO & ASSET MANAGEMENT REVIEW PAGE 18 AS AT DECEMBER 31, 2021 OCCUPANCY OCCUPANCY BY PROPERTY
Slide 19: Index Tower
INDEX TOWER PORTFOLIO & ASSET MANAGEMENT REVIEW PAGE 19 • Strong growth in occupancy levels with a y-o-y increase of 16.3 p.p. • 41 new leases, 59 renewals and 15 exits • Opening of Gate Avenue in June 2021 • Increased demand primarily by client interest in larger premium fully fitted and furnished
Slide 20: Office Park
OFFICE PARK PORTFOLIO & ASSET MANAGEMENT REVIEW PAGE 20 • Occupancy levels stabilised after two large leases expired and several corporate downsized during the pandemic • 10 new leases, 10 lease renewals and 4 tenant exits (of which 2 are retail tenants) • Pressure on retail as larger corporate tena
Slide 21: Loft Offices
LOFT OFFICES PORTFOLIO & ASSET MANAGEMENT REVIEW PAGE 21 • Asset most impacted by Covid-19 disruption • 5 new leases, 26 lease renewals and 11 tenant exits • Activity currently concentrated in Loft Offices 1 & 2. Loft Offices 3 remains vacant • Creative companies and SME’s impacted by onset of the C
Slide 22: European Business Centre
EUROPEAN BUSINESS CENTRE PORTFOLIO & ASSET MANAGEMENT REVIEW PAGE 22 • Premium building with high visibility in a key location within Dubai Investments Park • 21 new leases, 45 lease renewals and 15 exits • Large and flexible floor-plates are suitable for large corporates and SMEs alike • Opening of
Slide 23: Building
BUILDING 24 PORTFOLIO & ASSET MANAGEMENT REVIEW PAGE 23 • Excellent Location, part of phase one of Dubai Internet City • Occupancy impacted by new competition and refurbished properties within the freezone • 2 new leases, 10 lease renewals and 1 tenant exit • Discussions with TECOM in relation to ta
Slide 24: Indigo
INDIGO 7 PORTFOLIO & ASSET MANAGEMENT REVIEW PAGE 24 • Indigo 7 is currently 100% occupied • Well established and high demand for its retail and commercial space • 3 new leases, no renewals and no tenant exits • Secured a new tenant for the ground floor retail space in March 2021 NET LETTABLE AREA O
Slide 25: Index Mall
INDEX MALL PORTFOLIO & ASSET MANAGEMENT REVIEW PAGE 25 • Increased footfall post connection to the DIFC’s Gate Avenue in June 2021 • Retail remains particularly challenging, still recovering from Covid-19 pandemic ( 2 new leases, 1 exit) • Good level of enquiries for retail during 1Q 2022 • Positive
Slide 26: Trident Grand Mall
TRIDENT GRAND MALL PORTFOLIO & ASSET MANAGEMENT REVIEW PAGE 26 • Occupancy levels stable • 1 new lease, 2 lease renewals and 1 tenant exit • Retail tenants are still recovering from the Covid-19 market impact • Optimisation of operational costs and improvement of service charge recovery • Assessing
Slide 27: Education Portfolio
EDUCATION PORTFOLIO PORTFOLIO & ASSET MANAGEMENT REVIEW PAGE 27 LYCEE FRANCAIS JEAN MERMOZ • Commenced works for phase 3 during 1Q 2022 • Enrollment of new students is positive for September 2022 DURHAM SCHOOL DUBAI • School in DIP leased to Durham School Dubai in March 2022. Durham School is one of
Slide 28: Consolidated Financial Statements Review
CONSOLIDATED FINANCIAL STATEMENTS REVIEW
Slide 29: Consolidated Statement of Comprehensive Income
CONSOLIDATED STATEMENT CONSOLIDATED FINANCIAL STATEMENTS REVIEW PAGE 29 OF COMPREHENSIVE INCOME IN USD ‘000 31 DEC 2021 31 DEC 2020 CHANGE Y-O-Y • Total property income grew by 3.9% amidst a challenging real estate environment supported TOTAL PROPERTY INCOME 68,592 66,034 +3.9% by sale of half floor
Slide 30: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED FINANCIAL STATEMENTS REVIEW PAGE 30 IN USD ‘000 31 DEC 2021 31 DEC 2020 CHANGE Y-O-Y • Asset growth driven by improved property valuation and increased profitability INVESTMENT PROPERTY – FAIR VALUE 737,132 690,342 +6.8% • Decline in total li
Slide 31: Financial and Capital Management Highlights
FINANCIAL AND CAPITAL MANAGEMENT HIGHLIGHTS CONSOLIDATED FINANCIAL STATEMENTS REVIEW PAGE 31 EXISTING SUKUK & CONSENT SOLICITATION SUKUK REFINANCING • Voluntary Consent Solicitation offer was made to unsecured bond-holders • REIT Manager pursuing various options available for the to secure the instr
Slide 32: FY 2021 Conclusion
FY 2021 CONCLUSION
Slide 33: Key Metrics
CONCLUSION KEY METRICS PAGE 33 ALL KEY INDICATORS IMPROVING Y-O-Y * OCCUPANCY NET ASSET VALUE NET PROPERTY INCOME 71.8% USD 290m USD 56m +2.8 p.p. +28.5% +7.7% OPERATING PROFIT FUNDS FROM OPERATIONS EARNINGS PER SHARE USD 47m USD 18m USD 0.2 +59.3% +36.4x (1.3x) * USD Numbers are rounded to the near
Slide 34: Questions & Answers
Jee Emirates REIT QUESTIONS & ANSWERS
Slide 35: Thank You
Jee Emirates REIT THANK YOU