Emirates Reit (ceic) Plc · NASDAQDUBAI:REIT
Emirates Reit (ceic) — FY2023 Earnings Presentation
28 slides from Emirates Reit (ceic)'s earnings presentation, 2024
Slide 1: FY 2023 Results Presentation
FY 2023 RESULTS PRESENTATION
Slide 2: Disclaimer
INTRODUCTION DISCLAIMER(1) PAGE 2 This presentation has been prepared by Equitativa Such statements reflect current views on, among Neither Equitativa nor Emirates REIT intend or among other things, general business and (Dubai) Limited (“Equitativa” or the “Manager”), other things, markets, activiti
Slide 3: Speakers
INTRODUCTION SPEAKERS PAGE 3 Thierry Delvaux Ross Mclaughlin Sheikh Muhammed Moeen Chief Executive Officer Head of Real Estate Finance Director
Slide 4: Table of Contents
INTRODUCTION TABLE OF CONTENTS PAGE 4 1 2 3 FY 2023 HIGHLIGHTS MARKET OVERVIEW OPERATIONAL HIGHLIGHTS 4 5 CONSOLIDATED FINANCIAL STATEMENTS REVIEW CONCLUSION
Slide 5: Key Highlights
KEY HIGHLIGHTS INTRODUCTION PAGE 5 SUSTAINED IMPROVEMENT IN OPERATIONS AND NET ASSET VALUE Y-O-Y TOTAL PROPERTY INCOME NET PROPERTY INCOME OPERATING PROFIT USD 74.4m USD 62.1m USD 44.0m +10.5% +12.2% +36.8% OCCUPANCY NET ASSET VALUE INVESTMENT PROPERTIES 86.2% USD 499.7m USD 923.7m +1.7 p.p. +34.1%
Slide 6: Market Overview
MARKET OVERVIEW
Slide 7: Macroeconomic Overview
MARKET OVERVIEW MACROECONOMIC OVERVIEW PAGE 7 • In 2023, the UAE displayed its economic resilience and ability to adapt to challenging • Inflation is estimated to have declined from 4.8% in 2022 to 3.3% in 2023, global economic conditions. The government remained committed to diversifying the lower
Slide 8: Dubai Office Market Update
MARKET OVERVIEW DUBAI OFFICE MARKET UPDATE PAGE 8 DUBAI, OFFICE RENTS, Y-O-Y % CHANGE TO Q4 2023 • Freezones including DIFC and TECOM have been notable beneficiaries of the robust occupier market during 2023, where prominent segments including pharmaceutical and financial services sectors have drive
Slide 9: Dubai Retail Market Update
MARKET OVERVIEW DUBAI RETAIL MARKET UPDATE PAGE 9 • Supply of new retail projects has been limited during 2023, as the market continues to re-balance the oversupply which occurred in the past few years. • The market added an additional 123,000 sqm of GLA in 2023, DUBAI RETAIL MARKET: TOTAL STOCK, EX
Slide 10: Dubai School Market Update
MARKET OVERVIEW DUBAI SCHOOL MARKET UPDATE PAGE 10 DUBAI SCHOOL MARKET • There are currently 220 schools operating in Dubai for the 2023-2024 academic year, offering 17 different curricula and catering to over 365,000 students. • Demand for schools has been supported by the strong population increas
Slide 11: Operational Highlights
OPERATIONAL HIGHLIGHTS
Slide 12: Operational Highlights
OPERATIONAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS PAGE 12 • Occupancy across the portfolio increased by 1.7 p.p. to 86.2% for FY 2023. • Total number of tenants for the portfolio increased by 8.1% from 372 to 402 and the retention rate by area was 79.0% (excluding Schools). • Passing rental rates across
Slide 13: Index Tower Office Highlights
INDEX TOWER OFFICE HIGHLIGHTS OPERATIONAL PORTFOLIO PAGE 13 • Occupancy increased to 87.8% (+ 1.4 p.p. y-o-y). • 34 new leases, 61 renewals and 23 exits. • Rates increased by 10.6% driven by strong demand for micro & premium fully fitted and furnished offices. • Limited availability in DIFC and a su
Slide 14: Office Park Office Highlights
OFFICE PARK OFFICE HIGHLIGHTS OPERATIONAL PORTFOLIO PAGE 14 • Leasing activity remained healthy with 10 new leases, 22 lease renewals and only 6 tenant exits. • Reduction in occupancy due to large space occupier relocating as a result of company merger. • Ongoing implementation of asset improvement
Slide 15: Loft Offices Office Highlights
LOFT OFFICES OFFICE HIGHLIGHTS OPERATIONAL PORTFOLIO PAGE 15 • Unique and attractive offering in Dubai Media City, benefiting from demand in the media and creative sectors, and SMEs. • Occupancy at 53.8% (+7.3 p.p. y-o-y) with occupancy at Lofts 1 & 2 at 79.7% (+10.9 p.p. y-o-y). • Refurbishment of
Slide 16: Building Office Highlights
BUILDING 24 OFFICE HIGHLIGHTS OPERATIONAL PORTFOLIO PAGE 16 • Excellent Location, part of phase one of Dubai Internet City. • Growing competition from refurbished properties within the freezone. • Occupancy decreased by 1.7 p.p. y-o-y to reach 51.6%. • 3 new leases, 10 lease renewals and 2 tenant ex
Slide 17: European Business Centre Office Highlights
EUROPEAN BUSINESS CENTRE OFFICE HIGHLIGHTS OPERATIONAL PORTFOLIO PAGE 17 • Premium building within Dubai Investments Park with high visibility and metro access. • Occupancy increased by 14.9 p.p. to 83.9% during FY 2023. • Robust rental rate performance with 26.6% growth y-o-y. • 34 new leases, 61 l
Slide 18: Indigo Office Highlights
INDIGO 7 OFFICE HIGHLIGHTS OPERATIONAL PORTFOLIO PAGE 18 • Excellent location with high visibility along Sheikh Zayed Road. • Occupancy remains at 100%. • Well established and high demand area for retail and commercial space. • Improved recovery of operating expenses through service charge. • Implem
Slide 19: Index Mall Retail Highlights
INDEX MALL(1) RETAIL HIGHLIGHTS OPERATIONAL PORTFOLIO PAGE 19 • Attractive location at the entrance of DIFC catering to office tenants and residential occupiers. • Occupancy at 58.7%, an increase of 10.2 p.p. y-o-y. • Execution of Lease Contracts with a Nursery on Level 2; as well as a luxury flower
Slide 20: Trident Mall Retail Highlights
TRIDENT MALL RETAIL HIGHLIGHTS OPERATIONAL PORTFOLIO PAGE 20 20 • Occupancy at the mall increased to 83.1% (+7.3 p.p. y-o-y) with the occupancy for retail units being 100%. • Rental rates increased by 4.7%. • Assessing a soft refurbishment to common areas to increase the attractiveness of the mall.
Slide 21: Education Portfolio
EDUCATION PORTFOLIO EDUCATION HIGHLIGHTS OPERATIONAL PORTFOLIO PAGE 21 GEMS WORLD ACADEMY • Continued property improvements by GEMS, maintaining state of the art facilities for one of their flagship schools. LYCÉE FRANCAIS JEAN MERMOZ • The REIT has completed its investment into the third phase whic
Slide 22: Financial Highlights
TITLE01 FINANCIAL TITLE02 HIGHLIGHTS 22
Slide 23: Consolidated Statement of Comprehensive Income
CONSOLIDATED STATEMENT FINANCIAL HIGHLIGHTS PAGE 23 OF COMPREHENSIVE INCOME FOR THE YEAR ENDED IN USD ‘000 DEC 31, 2023 DEC 31, 2022 CHANGE Y-O-Y • Increased occupancy & improved rates resulted in total RENTAL, FEE & OTHER INCOME 74,389 68,785 8.1% property income of USD 74.4m for FY 2023 , which re
Slide 24: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT FINANCIAL HIGHLIGHTS PAGE 24 OF FINANCIAL POSITION AS AT IN USD ‘000 DEC 31, 2023 DEC 31, 2022 CHANGE Y-O-Y INVESTMENT PROPERTIES – FAIR VALUE 923,717 784,932 17.7% • Driven by continued improved valuations, fair value CASH AND CASH EQUIVALENTS 23,189 46,986 (50.6%) of investm
Slide 25: Net Property Income Y-O-Y
NET PROPERTY INCOME FINANCIAL HIGHLIGHTS PAGE 25 Disregarding one-offs (1) +12.2% +15.3% USD M 70.0 1.5 52.5 Net effect on net 35.0 property income from 62.1 62.1 Jebel Ali School that 55.3 53.8 was divested in 2022 17.5 12.8 (0.4) (1.5) 0.4 1.9 15.6 15.7 16.6 12.2 13.3 14.1 14.2 14.2 0.0 YTD 2022 Y
Slide 26: Conclusion
lke Emirates REIT CONCLUSION EQUITATIVA,
Slide 27: Questions & Answers
lke Emirates REIT QUESTIONS & ANSWERS EQUITATIVA,
Slide 28: Thank You
Jee Emirates REIT THANK YOU EQUITATIVA,