Dar Al Arkan Real Estate Development Co. · TADAWUL:4300
Dar Al Arkan Real Estate Development — Q4 2016 Earnings Presentation
28 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2017
Slide 1: Investor Presentation Q4, 2016
Investor Presentation Q4, 2016 www.alarkan.com
Slide 2: Table of Contents
Table of Contents I. Macro-economic & Sector Overview II. Company Overview & Financial Performance III. Company Activities IV. Investment Summary V. Appendix i. P&L ii. Balance Sheet
Slide 3: I. Macro-economic & Sector Overview
I. Macro-economic & Sector Overview
Slide 4: Macroeconomic Overview
Macroeconomic Overview KSA economy has been adversely affected by the collapse in international oil prices; however, going forward, stabilizing oil prices on the back of OPEC deal and readjustment of the economy to new price levels are expected to revive the economy during 2017. • Saudi Arabia's GDP
Slide 5: KSA Demographic & Tourism
KSA Demographic & Tourism Although currently subdued, KSA real estate market remains attractive due to a large young population, favourable demographics, reducing family sizes, growing affluence and rise in tourism • Bulk of the population in the KSA resides in Riyadh, Makkah, Madinah and KSA popula
Slide 6: KSA Real Estate Development
KSA Real Estate Development In its efforts to diversify away from an oil based economy, the Kingdom is making efforts to increase investment in the real estate sector. These include implementation of the White land tax, establishment of real estate fund rules, and formation of housing refinance comp
Slide 7: KSA Real Estate Development (Contd.)
KSA Real Estate Development (Contd.) The Ministry of Housing is keen on enhancing the performance of the real estate sector in the Kingdom and, in coordination with various authorities, is taking various measures, projects and initiatives that support supply and reinforce demand Number of citizens p
Slide 8: KSA Real Estate Overview
KSA Real Estate Overview KSA Real Estate Market is facing challenging times amid slow down in economy; however continued efforts by the govt. to diversify the economy will result in positive impact over the medium term. 4Q 2016 witnessed slowdown in the rate of decline in several real estate indicat
Slide 9: KSA Real Estate Overview – Riyadh Land Transactions
KSA Real Estate Overview – Riyadh Land Transactions Land transactions across both residential and commercial segments witnessed a reversal in trend as both volumes and total investment increased QoQ during 4Q 2016. Both volume and total investment indicators improved from steep declines in 3Q 2016.
Slide 10: KSA Real Estate Overview – Residential & Office Market
KSA Real Estate Overview – Residential & Office Market KSA residential and office market remain supressed due to weak market sentiments, slow economic growth and subdued demand. The rate of decline in prices and rents for the residential market remained flat, while the office rents continue to decli
Slide 11: KSA Real Estate Overview – Retail & Hospitality
KSA Real Estate Overview – Retail & Hospitality Hospitality segment witnessed sharp decline in all indicators, due to higher supply and the recent implementation of higher visa fees by the govt. limiting visitor growth. Similarly, retail segment also remained under pressure owing to lower consumer c
Slide 12: II. Company Overview & Financial Performance
II. Company Overview & Financial Performance
Slide 13: Company overview
Company overview Dar Al-Arkan – A leading real estate developer in Saudi Arabia • Largest listed real estate developer in Saudi Arabia Increasing investments in leasing assets As of 31 Dec 2016: 100% 2% • Market Capitalization: SAR 6.7 bn (US$ 1.8 bn) 17% 17% Property management • Total number of em
Slide 14: Financial Performance
Financial Performance Full Year 2016 Profitability • Revenue decreased 15% to SAR 1,870 mn Revenue (SAR mn) Recurring Revenue (SAR mn) (2015: SAR 2,211 mn). 4,000 175 • Land sales revenue was SAR 1,725 mn 3,000 3,313 3,557 150 3,056 125 (2015: SAR 2,075 mn), down 17%. 2,931 2,000 100 2,211 75 146 •
Slide 15: Financial Performance … cont’d
Financial Performance … cont’d Full Year 2016 Balance Sheet Cash Flow 2016 (SAR mn) 3,500 • Liquidity Position: Cash balance decreased to SAR 582 mn in spite of SR 1.5 bn debt 400 167 3,000 repayments (including Sukuk VI of 1.1 bn). 2,500 1,510 • Working Capital: Improved by SAR 335 mn 2,000 1,870 Y
Slide 16: Financial Performance … cont’d
Financial Performance … cont’d Q4, 2016 Profitability Revenue (SAR mn) Recurring Revenue (SAR mn) • Revenue marginally lower QoQ by 2% to SAR 410 1,000 Quarterly revenue Leasing Revenue mn (2015, Q4 SAR 419 mn). 40 800 30 35 35 37 37 35 37 • Land sales revenue SAR 373 mn (2015, Q4: SAR 600 31 31 30
Slide 17: Financial Performance … cont’d
Financial Performance … cont’d Q4, 2016 Funding • Net debt stands at SAR 4,633 mn (Q3, Gross Debt/Capitalization Q4, 2016 Debt Profile (SAR mn) 2016 SAR 4,483 mn) gross debt / capitalization stands lower at 22.3% 30% • Sukuk VI of SR 1,125 mn was repaid 26% 26% 26% 25% 25% 22% on maturity in Nov 201
Slide 18: III. Company Activities
old y DI sla By DAR ALARKAN Ill. Company Activities
Slide 19: Land Development
Land Development Substantial and Geographically Diverse Land Bank • Land plots are purchased based on thorough analysis : Land revenue & gross margin (SAR Millions) — Target large cities with supply / demand gap 38.7% 44.2% — Follow expansion trends from the city centre to the newer 4,000 42.0% 41.7
Slide 20: Properties
Properties Al Qasr Community Al Qasr Mall Others Al-Qasr Community by Numbers Al-Qasr Mall by Numbers Built-up Area (sqm) 1.2mn Built-up Area (sqm) 230k Housing Capacity 13,000 Total # Residential Units 3,051 GLA (sqm) 76k Total # Villas 254 # Leasable Units 429 Total # Apartments 2,797 # Villas for
Slide 21: Residential and Commercial Development
Residential and Commercial Development Shams Ar Riyadh Juman Shams Al Arous and Al Tilal Shams Ar-Riyadh - is Dar Al-Arkan’s one Juman - is located in Dammam and will be an Shams Al Arous - is the Company’s third Master of a kind Master Plan Community Project integrated Master Plan Community Project
Slide 22: IV. Investment Summary
IV. Investment Summary
Slide 23: Investment Summary
Investment Summary 1 A substantial and 2 3 Longstanding land price geographically diverse land Progress with revenue appreciation with some recent bank with rigorous approach to diversification through leasing weakening from macro acquisition and current focus on and off plan sales uncertainty cash
Slide 24: V. Appendix
old y DI sla By DAR ALARKAN V. Appendix
Slide 25: Financial Performance – Income Statements
Financial Performance i) Income Statements SR in 000s FY 2013 FY 2014 Q4, 2015 Q4, 2016 FY 2015 FY 2016 Revenue 2,931,168 3,056,060 419,354 410,494 2,211,349 1,870,229 Cost of revenue (1,778,097) (1,756,805) (238,567) (240,038) (1,228,117) (1,078,287) Gross profit 1,153,071 1,299,255 180,787 170,456
Slide 26: Financial Performance – Balance Sheet
Financial Performance ii) Balance Sheet SR in 000s FY 2013 FY 2014 FY 2015 FY, 2016 Cash 2,279,132 2,310,196 1,001,061 582,088 Accounts Receivables 1,364,297 1,747,778 1,948,687 1,839,470 Pre-paid Expenses 484,201 816,697 974,809 743,508 Project in Progress-ST 44,529 - - 0 Developed Land -ST 927,110
Slide 27: Disclaimer
Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES. THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS P
Slide 28: Dar Al-Arkan – Built for Life
1H) {Ht old II yl DAR AL-ARKAN ls BUILT FOR LIFE
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