Emirates Reit (ceic) Plc · NASDAQDUBAI:REIT
Emirates Reit (ceic) — Shareholder Meeting (June 2021)
30 slides from Emirates Reit (ceic)'s shareholder meeting presentation, June 2021
Slide 1: 2021 Annual General Meeting
2021 ANNUAL GENERAL MEETING H1 2019
Slide 2: Market Overview
MARKET OVERVIEW
Slide 3: Dubai Doing Relatively Well
DUBAI DOING RELATIVELY WELL • As at January 2021 the UAE was ranked second globally COVID-19, VACCINATION DOSES ADMINISTERED 13 Jan 2021, per 100 People by way of vaccination doses administered per 100 people. As of today the vaccination program is even 5 10 15 20 25 further advanced, providing conf
Slide 4: UAE Macroeconomic Forecast
UAE MACROECONOMIC FORECAST • The economy is expected to grow in 2021 as it recovers from its pandemic-induced slump in 2020. • Despite a high GDP contraction of around 11% last year, GDP is expected to follow a V-shaped recovery this year and remain positive until 2023. • The UAE’s economy is projec
Slide 5: Dubai Office Market 2020 Review
DUBAI OFFICE MARKET 2020 REVIEW • The commercial market witnessed challenges in 2020 as a result of the implementation of the remote working model VACANCY LEVELS and lock-downs due to the COVID-19 pandemic. With a return to work policies varying across companies. • Vast majority of demand is coming
Slide 6: Dubai Office Rents Q4 2020
DUBAI OFFICE RENTS Q4 2020 This market study was prepared by CORE. Established in 2008 and present in Abu Dhabi, Dubai and Bahrain, CORE is a full-service real estate advisory, brokerage and management firm delivering integrated expertise across Office, Retail, Industrial and Hotel sectors. Managed
Slide 7: Office Market Forecast
OFFICE MARKET FORECAST OFFICE IS HERE TO STAY SECOND WAVE OF RELOCATIONS RESISTANCE IN HEADLINE RENTS OCCUPANCY AND TENANT RETENTION Flexibility around remote working will We expect a second wave of relocations Landlords are providing a variety of As most new office demand is dominated remain preval
Slide 8: 2021 Huge Shift in Operating Environment
2021 HUGE SHIFT IN OPERATING ENVIRONMENT COMMERCIAL EDUCATION • In 2020: A shift to a home working model by many • In 2020: Headwinds, lockdown measures and families leaving businesses, caused tenants to reduce their space. the UAE had a significant impact on schools in the region. The majority of a
Slide 9: Portfolio Highlights
PORTFOLIO HIGHLIGHTS 9
Slide 10: Operational Highlights
OPERATIONAL HIGHLIGHTS OCCUPANCY -3.9% PROPERTY INCOME -7.0% RENTAL RATES +0.4% UNEXPIRED LEASE TERM +12.5% ANNUALISED RENT Managed by Equitativa 10
Slide 11: Operational Highlights
OPERATIONAL HIGHLIGHTS • Focus on leasing and commercial operations. • Impact from REIT Manager’s leasing team, with positive conversion of Q4 enquiries. • Q1 2021 tenant retention: - 28 new leases: 53,000 sqft - 30 renewals: 40,000 sqft • On-going CAPEX at Index and Office Park towards improving co
Slide 12: Property Operations Highlights
PROPERTY OPERATIONS HIGHLIGHTS INDEX TOWER LOFT OFFICES • Occupancy at 53% (Y-o-Y: +4%). • Occupancy at 59% (Y-o-Y: -10%) (excludes Loft 3). • Strong Q1 2021 growth with occupancy incr. +4.5%. • Cluster most impacted by Covid-19 disruption with a concentration of SME’s and creative companies. • Posi
Slide 13: Property Operations Highlights
PROPERTY OPERATIONS HIGHLIGHTS BUILDING 24 • Occupancy at 39% (Y-o-Y -26%). • Lowest occupancy and the largest decline in the portfolio. • Manager under a PMLA by TECOM with limited role from the REIT Manager. • Assessing asset management options and refurbishment of common areas. TRIDENT GRAND MALL
Slide 14: Financials
FINANCIALS
Slide 15: FY 2020 Income and Earnings
FY 2020 INCOME AND EARNINGS (1) IFRS 16 was adopted effective from 01 January 2019, in line with IFRS financial reporting requirements (2) Net Unrealised (loss) / gain on revaluation include change in fair value of right-of-use asset required under IFRS 16 Managed by Equitativa 15
Slide 16: Balance Sheet Overview
BALANCE SHEET OVERVIEW FY 2020 IN USD M 31 DEC 2020 31 DEC 2019 CHANGE USD 803.4 USD 803.4 INVESTMENT PROPERTY 690.3 919.4 (24.9%) Receivables & Others 99.3 82.3 Payables & Others TOTAL ASSETS 803.4 1,058.8 (24.1%) Cash & Equivalents 13.7 ISLAMIC FINANCING 495.6 507.4 (2.3%) TOTAL LIABILITIES 577.9
Slide 17: Quarterly Income and Earnings
QUARTERLY INCOME AND EARNINGS VARIANCE VARIANCE in usd m Q1 2021 Q4 2020 Q-o-Q Q1 2020 Y-o-Y total property income 14.9 15.4 (3.2%) 16.8 (11.5%) property operating expenses (3.2) (4.0) (20.0%) (3.5) (9.8%) net property income 11.7 11.4 2.6% 13.3 (11.9%) fund expenses (3.7) (3.5) 3.4% (4.1) (10.9%) a
Slide 18: Balance Sheet Overview
BALANCE SHEET OVERVIEW USD 845.4 USD 845.4 31 MAR 31 DEC Q-o-Q 31 MAR Y-o-Y IN USD M 2021 2020 CHANGE 2020 CHANGE Receivables & Others 100.4 91.2 Payables & Others INVESTMENT Cash & Equivalents 16.9 728.1 690.3 5.5% 878.1 (17.1%) PROPERTY TOTAL 845.4 803.4 5.2% 1,018.1 (17.0%) ASSETS ISLAMIC 492.5 4
Slide 19: Strategic Review
STRATEGIC REVIEW
Slide 20: Strategic Review
STRATEGIC REVIEW • Houlihan Lokey was engaged on 2 August 2020 to advise on the strategic options for the Emirates REIT’s portfolio and on its operational structure • Equitativa, as manager of the REIT, provided full access to their online system which tracks live the portfolios KPIs (the leases, oc
Slide 21: Strategic Review Nasdaq Dubai
STRATEGIC REVIEW NASDAQ DUBAI • As part of the strategic review, our advisors reviewed the EXCHANGE COMPARABLES (INCL. ALL ASSET CLASSES) trading volumes of Emirates REIT on the Nasdaq Dubai ENTITY LISTED 2020 TRADING 2019 TRADING INSTRUMENTS VALUE ($BN) VALUE ($BN) Nasdaq Dubai ~150 ~1.6bn ~1.6bn •
Slide 22: Strategic Review Sukuk
STRATEGIC REVIEW SUKUK • It has been a very volatile year with commercial real estate debt markets having a positive underlying tone at the beginning of the year on a fundamental basis “In a distressed scenario, […] we have excluded • That tone cracked under extreme strain and forced selling […] any
Slide 23: 2021: 20% Reduction in Management Fee
2021: 20% REDUCTION IN MANAGEMENT FEE • The REIT is operating in a very difficult environment, and we have offered short term relief in exchange of longer duration leases to our tenants to support them. We believe this support strengthens the relationship with our tenants “REIT manager fees, which a
Slide 24: Sukuk Offering
SUKUK OFFERING SERIES OF EVENTS THE OFFER • On May 19 2021 a Consent Solicitation process was • The Consent Solicitation was a voluntary transaction launched in relation to the USD 400 million Trust Certificates proposed by Emirates REIT. due 2022 issued by Emirates REIT Sukuk Limited. • The proposa
Slide 25: The Sukuk Price Impact
THE SUKUK PRICE IMPACT The value of Emirates REIT's Sukuk rallied 15 basis points, or 26% (as at 18 June 2021), since the revised Sukuk terms were initially proposed. Managed by Equitativa 25
Slide 26: Latest Updates
LATEST UPDATES
Slide 27: Index Tower: Floor Sale & Occupancy Increase
INDEX TOWER: FLOOR SALE & OCCUPANCY INCREASE • On June 10 2021, Equitativa announced that it sold half of a shell and core office floor in Index Tower for AED 40 million. • The value of AED 3,350 per sq.ft, represents a valuation gain in excess of c. AED 18 million compared to the latest valuation o
Slide 28: Memorandum of Understanding with Jebel Ali School
MEMORANDUM OF UNDERSTANDING WITH JEBEL ALI SCHOOL • On June 14 2021, Equitativa announced that it had reached an initial agreement with Jebel Ali School in relation to the dispute on the outstanding payment of rent. • Under the terms of the agreement Jebel Ali School has paid Emirates REIT AED 20 mi
Slide 29: Questions & Answers
QUESTIONS & ANSWERS EQUITATIVA
Slide 30: Thank You
THAN RK YQU EQUITATIVA
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