Rak Properties · ADX:RAKPROP
Rak Properties — Q3 2024 Earnings Presentation
49 slides from Rak Properties's earnings presentation, Nov 5, 2024
Slide 1: Investor Relations Q3 2024
INVESTOR RELATIONS ENHANCING LIVES, ENHANCING VALUE rakproperties.ae Q3 2024
Slide 2: Disclaimer
DISCLAIMER This presentation is intended for information purposes only and does not constitute or form part of an offer for sale or subscription or an invitation or solicitation of an offer to subscribe for or purchase securities of any kind and neither this document nor anything contained herein sh
Slide 3: Content
CONTENT CONTENT OVERVIEW RAK PROPERTIES PERFORMANCE & TRACK RECORD KEY FINANCIALS OPERATIONAL HIGHLIGHTS SUSTAINABILITY OUTLOOK 3
Slide 4: Vision, Mission & Goals
VISION, MISSION & GOALS VISION To be a global real estate company that creates sustainable lifestyle developments where people aspire to live, work, and enjoy, generating long-term value. MISSION GOALS RAK Properties is committed to leading and § Supporting and promoting the developing Ras Al Khaima
Slide 5: RAK Properties Brand Values
RAK PROPERTIES BRAND VALUES RESPONSIBLE COMMUNITY- VALUE- SUSTAINABILITY EXCELLENCE & ACCOUNTABLE CENTRIC DRIVEN We are guided by integrity, We aim to foster Our ethos is anchored in Sustainability is the We are relentlessly committed respect, and transparency in environments in Ras Al adding meanin
Slide 6: Core Business Segments & Landbank
CORE BUSINESS SEGMENTS & LANDBANK Approximately 50 million sq. ft. land bank in Mina Al Arab. COMPLETED RESIDENTIAL 2 Completed Residential development in Abu Dhabi. DEVELOPMENTS Land Parcels in Dubai. Additional c. 2 million sq. ft. acquired in RAK. ASSET MANAGEMENT Approximately 1 million sq. ft.
Slide 7: RAK Properties Diversified Business Model
RAK PROPERTIES DIVERSIFIED BUSINESS MODEL OUR BUSINESS MODEL BUSINESS SEGMENTS* As a leading master developer, our core strategy revolves around transforming prime land into luxurious properties that offer an unparalleled lifestyle. We also generate revenue from leasing and sales of these high-end u
Slide 8: Mina Al Arab Master Development in Ras Al Khaimah
MINA AL ARAB MASTER DEVELOPMENT IN RAS AL KHAIMAH RESIDENTIAL, COMMERCIAL, AND HOSPITALITY NIKKI BEACH RESORT & SPA CAPE PORTO BAY RESIDENCES HAYAT PLAYA INTERCONTIENTAL RESORT BERMUDA RAHA ISLAND HAYAT ISLAND ANANTARA QUATTRO RESORT DEL MAR GRANADA BAYVIEWS MARBELLA FLAMINGO VILLAS VILLAS GATEWAY I
Slide 9: Hayat Island (within Mina Al Arab, RAK)
HAYAT ISLAND (within Mina Al Arab, RAK) RESIDENTIAL, COMMERCIAL, AND HOSPITALITY MARBELLA I STAY BRIDGE GATEWAY II VILLAS SUITES MARBELLA II RESIDENCES INTERCONTINENTAL VILLAS RAS AL KHAIMAH RESORT & SPA BAY RESIDENCES AND NASIM LOFTS BAY VIEWS CAPE HAYAT PORTO PLAYA NB COLLECTION ANGEL BAY ` QUATTR
Slide 10: RAK Properties at a Glance
RAK PROPERTIES AT A GLANCE 2005: 2006: 2010: 2011: 2012: 2017: 2020: 2022: 2023: 2024: RAK Properties was Mina Al Arab was Granada Villas Malibu Villa community Delivered 808 Raha Island Gateway Intercontinental Nikki Beach Anantara Mina Al established prepared for Community in in Apartments in deve
Slide 11: RAK Properties Awards
RAK PROPERTIES AWARDS 2023 2023 2024 2024 BAY VIEWS CEO MIDDLE QUATTRO ANANTARA EAST AWARDS DEL MAR RESORTS & SPA Best Residential Project Sameh Muhtadi won in Best mixed-use project Leading New Hotel at the Annual Design the CEO Middle East at the Pillars of Real Award at this year’s Middle East Aw
Slide 12: Strategy for Growth
STRATEGY FOR GROWTH Masterplan-led Deploy Raha Island land Increase recurring development with timely to fuel future development revenues through retail delivery of mixed-use projects and continue to and hospitality offerings communities acquire new landbank Form strategic Ensure prudent Set high st
Slide 13: Financials at a Glance
FINANCIALS AT A GLANCE A trusted name in Ras Al Khaimah's real estate 46% INCREASE IN 30% INCREASE IN 925 Mn IN SALES 3% ANNUAL EBITDA REVENUE VALUE YTD INCREASE IN SEPTEMBER SHARE PRICE Q3 2024 VS Q3 2023 Q3 2024 VS Q3 2023 Growth in Total Assets and Equity driven by additional land acquired c. 2 M
Slide 14: Segmental Performance
SEGMENTAL PERFORMANCE Q3 2024 COMPLETED CONSTRUCTION PLANNING GDV (AED MN) 3,172 3,173 850 NO. OF UNITS 3,176 2,886 359 Around 1 Million Sq.ft. GLA C. AED 7,744 Mn in Total Assets in Q3 2024 as of Q3 2024 14% 33% 48% 24% 62% 19% Commercial Retail Residential Property Sales Hospitality Asset Manageme
Slide 15: A New Strategic Track Record
A NEW STRATEGIC TRACK RECORD Revenues in AED Mns An outstanding sales track record for numerous residential projects, including Julphar Residence, Bay Substantial investments in Residence, Gateway Residences, residential and hospitality Bayviews, Cape Hayat, and projects, the successful Marbella. co
Slide 16: Q3 2024 Revenues Grew by 30% YoY
EXPANSION OF REVENUE STREAMS BEYOND RESIDENTIAL PROPERTIES REVENUE BY SEGMENT in AED Mns Q3 2024 1,100 1,005 1,000 Residential Property Sales 891 900 Asset Management REVENUES Hospitality 800 700 GREW BY 600 500 516 831 716 30% YOY 408 400 300 460 280 200 RAK Properties continues to expand its hospi
Slide 17: Solid Balance Sheet Records
SOLID BALANCE SHEET RECORDS DEBT MATURITY PROFILE* in AED Mns In AED MNs Q2 2024 Q3 2024 500 486 DEBT 1,358 1,328 450 CASH 461 443 400 NET DEBT 897 886 350 TOTAL EQUITY 5,308 5,343 300 TOTAL ASSETS 7,787 7,744 250 200 153 Q2 2024 Q3 2024 150 138 118 95 NET 100 16.9% 16.6% DEBT/EQUITY 50 DEBT/TOTAL 1
Slide 18: Total Liabilities
TOTAL LIABILITIES LIABILITIES in AED Mns 3,000 -3% 2,478 2,401 2,500 2,000 1,500 1,000 500 0 As of Jun 24 As of Sept 24 RAK Properties is adequately funded through sufficient sales collections and credit facilities 18 18
Slide 19: Q3 Gross Profit Increased
INCOME STATEMENT FY FY FY Q3 2021 2022 2023 2024 REVENUE 515.6 408.2 1004.9 891.3 Q3 GROSS PROFIT (AED M) GROSS PROFIT 194.9 140.5 346.4 342.6 INCREASED (AED M) EBITDA 220.7 94.2 267.0 237.4 (AED M) NET PROFIT BEFORE TAX 201.5 30.8 201.8 133.4 BY 46% YOY (AED M) GROSS PROFIT MARGIN 37.8 34.4 34.5 38
Slide 20: Q3 Net Profit Before Tax Higher by 15% Y/Y
Q3 NET PROFIT BEFORE TAX HIGHER BY 15% Y/Y GROSS PROFIT in AED MNs NET PROFIT BEFORE TAX in AED MNs 400 250 202 202 200 346 343 350 150 133 100 300 31 50 0 250 2021 2022 2023 Q3 2024 195 200 EBITDA in AED MNs 150 141 300 267 221 237 250 100 200 150 50 94 100 50 0 2021 2022 2023 Q3 2024 0 2021 2022 2
Slide 21: A Stable Performance in Q3 2024
A STABLE PERFORMANCE IN Q3 2024 GROSS AND NET PROFIT MARGINS in % 60% 50% 37.8% 40% 38.4% 34.4% 34.5% 30% 39.1% 20.1% 20% 13.6% 7.5% 10% 0% 2021 2022 2023 Q3 2024 Gross Profit Margin Net Profit Margin 21
Slide 22: Share Information
SHARE INFORMATION 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 MARKET CAP 1,540 1,360 2,280 2,579.2 3,201.9 3,570.0 (AED MNS) SHARE PRICE 1.24 1.07 1.19 0.77 0.68 1.14 (AED/SHARE) (As of Mar 31) (As of Jun 30) (As of Sept 30) EPS 0.10 0.015 0.101 0.020 0.022 0.051 (AED/SHARE) 1.19 3,500 1.24 1.07 1.4 1.14
Slide 23: Contribution from Recurring Businesses in Q3 2024
FINANCIALS BY BUSINESS SEGMENT CONTRIBUTION FROM RECURRING BUSINESSES IN Q3 2024 Revenue: 20% | Gross profit: 23% REVENUE SHARE GROSS PROFIT SHARE 5.1% 6.2% 5.3% 3.2% 14.5% 11.7% 20% 20.3% Q3 Q3 Q3 Q3 2024 2023 2024 2023 80.4% 82.1% 76.5% 74.7% Property Sales Hospitality Asset Management 23
Slide 24: Notable Growth in Residential Segment
NOTABLE GROWTH IN RESIDENTIAL SEGMENT RESIDENTIAL RESIDENTIAL PROPERTY SALES* Q1 2024 Q2 2024 Q3 2024 PROPERTY SALES 1,947 3,000 2,000 No. of Units (RHS) AED Mn 373 330 222 2,500 Total Revenue (AED M) 1,500 2,000 No. of Units 266 230 144 1,500 1,000 2,868 1,000 359 135 500 500 396 512 0 0 2021 2022
Slide 25: Robust Hospitality Performance
ROBUST HOSPITALITY PERFORMANCE Q3 2023 Q3 2024 Q3 2024 HOSPITALITY INTERCON INTERCON ANANTARA Number of Keys 351 351 174 Average Daily Rate (ADR, AED) 678 656 1290 Occupancy Rate (%) 70% 68% 47% Revenue per available room (RevPar) (AED) 475 445 607 Room Revenue (AED Mn) 46 43 33 F&B & Other Revenue
Slide 26: Projects Under Development
PROJECTS UNDER DEVELOPMENT As of 30 sept LAUNCH UNITS NET SALES REVENUE PROJECT LOCATION UNITS SOLD % SOLD % COMPLETE YEAR LAUNCHED (AED M) BACKLOG Gateway 2 Mina Al Arab 2023 146 146 164 6 100% 96% Bayviews Mina Al Arab 2023 344 344 311 100% 26% 421 Bay Residence Phase 1 Mina Al Arab 2023 331 324 3
Slide 27: Investment Proposition
INVESTMENT PROPOSITION TRACK ECONOMIC QUALITY FINANCIAL STRONG NEW LAND PRUDENT RECORD BACKDROP PORTFOLIO PERFORMANCE MANAGEMENT ACQUISITIONS MANAGEMENT RAK’s long term Covering Q3 2024 results Highly experienced New land Prudent Almost 20 years of creating growth prospects as residential, show stab
Slide 28: ESG - A Pillar of Our Vision & Mission
ESG - A PILLAR OF OUR VISION & MISSION ENVIRONMENTAL SOCIAL GOVERNANCE COMMITMENT RESPONSIBILITY EXCELLENCE We are dedicated to integrating We focus on improving the well- Our robust governance framework sustainable practices across all being of all stakeholders, including ensures accountability thr
Slide 29: Strengthening Our Environmental Sustainability Efforts
STRENGTHENING OUR ENVIRONMENTAL SUSTAINABILITY EFFORTS ENERGY EFFICIENCY WATER CONSUMPTION WASTE MANAGEMENT Key initiatives to reduce carbon footprint Key measures to optimise water use: Key efforts include the recycling of non-hazardous waste. • Investment in energy - efficient LED lighting • Insta
Slide 30: Discovery Center: A Closer Look
DISCOVERY CENTER: A CLOSER LOOK The Mina Al Arab Discovery Center is a community hub dedicated to environmental education and preservation. Located in Mina Al Arab, it focuses on teaching residents, especially schoolchildren, the importance of mangrove ecosystems and local wildlife. This initiative
Slide 31: Advancing Our Social Responsibility
ADVANCING OUR SOCIAL RESPONSIBILITY OUR PEOPLE - THE CORNERSTONE OF OUR SUCCESS DIVERSITY & INCLUSION HEALTH & SAFETY RAK Properties cultivates an inclusive work environment. • Commitment to Occupational Health and Safety, evidenced by our ISO 45001:2018 certification. • 211 employees: 27% female, 7
Slide 32: Commitment to Governance Principles & Best Practices
RAK PROPERTIES’ COMMITMENT TO GOVERNANCE PRINCIPLES & BEST PRACTICES ENSURING ROBUST UPHOLDING KEY BUSINESS RISK MANAGEMENT ETHICAL STANDARDS POLICIES Oversight by the Auditing Committee Our Ethics and Compliance Whistleblowing Policy of Ethics and Compliance & policies guide responsible Anti-Money
Slide 33: Market Outlook
MARKET OUTLOOK Ai 33
Slide 34: RAK Is the 4th Largest Emirate in Terms of Land Mass
RAK IS THE 4th LARGEST EMIRATE IN TERMS OF LAND MASS • A well-connected emirate, Ras Al Khaimah benefits from connectivity to all major destinations across Europe, Asia, and the Middle East through various airports in the UAE. • With an estimated population of 0.4 million and a GDP of approximately
Slide 35: Positive Macroeconomic Drivers
POSITIVE MACROECONOMIC DRIVERS FITCH RATINGS UPGRADED RAK’S ISSUER DEFAULT RATINGS (IDRS) TO A+ AMID EXPECTATIONS OF STRONGER GROWTH AND FISCAL MANAGEMENT Substantial government support A history of fiscal surpluses Improving Macroeconomic Management Expected increase in public revenue Strong fiscal
Slide 36: RAK Property Market Is Witnessing a Significant Boom
RAK PROPERTY MARKET IS WITNESSING A SIGNIFICANT BOOM Q2 2024 PREFERRED TYPOLOGY: TYPE/3-MONTH DRIVER PRICE GROWTH Rising real-estate prices by A surge in activity, 20-25% in the past eight around 1-2 new property Studios (+10-15%) Investors seeking lucrative holiday and months. Trend to continue lau
Slide 37: Strong Real-Estate Trajectory
STRONG REAL-ESTATE TRAJECTORY REAL ESTATE TRANSACTIONS BY MONTH IN RAK 2024 (AED MN) Real Estate Transactions (AED Mn) No. of Final New Building Permits in RAK in 2024 Mortgage Value (AED Mn) Source: Ras Al Khaimah Statistical Center 37
Slide 38: Hospitality Market Continued to Show Resilience
HOSPITALITY MARKET CONTINUED TO SHOW RESILIENCE 120,031 22.8 11 5,000 Occ PP Change 113,008 ADR % Change 108,704 11 0,000 RevPAR % Change 109,915 105,627 10 5,000 105,182 12.5 10 0,000 10.5 9.4 9.7 95 ,0 00 7.8 6.6 6.7 93,231 92,888 90 ,0 00 4.9 10.7 3.5 2.5 85 ,0 00 1.0 0.4 0.7 0.9 80 ,0 00 -0.6 -0
Slide 39: Why Invest in Ras Al Khaimah
WHY INVEST IN RAS AL KHAIMAH 100% Foreign Ownership, 0-9% Corporate Tax, and Long-Term Residency Through Investment are just some of the reasons why investing in Ras Al Khaimah is so attractive POLITICAL AND GEOGRAPHIC FAVOURABLE MODERN ECONOMIC ADVANTAGES BUSINESS INFRASTRUCTURE STABILITY ENVIRONME
Slide 40: Appendix
APPENDIX 40
Slide 41: Mina Al Arab project map
0 1 . GRA N A D A I V I L L A S 0 8. ANANTARA RESORT AND SPA 1 5. BA Y RE S I D E N CE S 22. BRA N D E D A PA RT M E N T S 0 2. GRA N A D A II V I L L A S 0 9 . MARBELLA I VILLAS 16. S T A Y BRI D GE 23. BRA N D E D V I L L A S 0 3. L AGO O N M A RI N A 1 0 . M A RBE L L A I I V I L L A S 1 7. BA Y
Slide 42: Hayat Island
NIKKI BEACH RESORT & SPA NB BAY RESIDENCES CAPE COLLECTION HAYAT PORTO PLAYA INTECONTIENTAL QUATTRO RESORT DEL MAR GATEWAY II BAYVIEWS MARBELLA VILLAS HAYAT ISLAND RESIDENTIAL, COMMERCIAL, AND HOSPITALITY 42
Slide 43: Hayat Island Project Type
HAYAT ISLAND PROJECT TYPE UNITS NB COLLECTION Villas 11 Units QUATTRO DEL MAR Apartments 888 Units CAPE HAYAT Apartments 678 Units PORTO PLAYA Apartments 269 Units BAY VIEWS Apartments 344 Units BAY RESIDENCES Apartments 661 Units GATEWAY II RESIDENCES Apartments 146 Units INTERCONTINENTAL Hotel 351
Slide 44: Raha Island
BERMUDA GATEWAY I EDGE RAHA ISLAND RESIDENTIALS 44
Slide 45: Raha Island Project Type
RAHA ISLAND PROJECT TYPE UNITS BERMUDA Villas/Townhouses 157 Units GATEWAY I RESIDENCES Apartments 144 Units 237 units EDGE Apartments 45
Slide 46: Lagoons
ANANTARA RESORT GRANADA II MALIBU FLAMINGO VILLAS LAGOON MARINA RETAIL PLAZA LAGOONS RESIDENTIAL, COMMERCIAL, AND HOSPITALITY 46
Slide 47: Lagoons Project Type
LAGOONS PROJECT TYPE UNITS GRANADA I Villas/Townhouses 93 Units MALIBU VILLAS Villas/Townhouses 213 Units FLAMINGO VILLAS Villas/Townhouses 192 Units ANANTARA RESORT Hotel 174 Keys LAGOON WALK 20 Towers 800 Units GRANADA II Villas 80 Units 47
Slide 48: Others Project Type
OTHERS PROJECT TYPE UNITS JULPHAR TOWER RAK Apartment/Offices/Retail 884 Units RAK TOWER Apartments 212 Units (ABU DHABI ) JULPHAR RESIDENCE Apartments 266 Units (ABU DHABI) 48
Slide 49: Enhancing Lives & Places
ENHANCING LIVES & PLACES rakproperties.ae