Dar Al Arkan Real Estate Development Co. · TADAWUL:4300
Dar Al Arkan Real Estate Development — Q1 2014 Earnings Presentation
29 slides from Dar Al Arkan Real Estate Development's earnings presentation, April 2014
Slide 1: Investor Presentation
Investor Presentation April 2014 www.alarkan.com
Slide 2: Table of Contents
Table of Contents I. Investment Summary II. Macroeconomic & Sector Overview III. Company Overview IV. Financial Performance 2
Slide 3: I. Investment Summary
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Slide 4: Investment Summary
Investment Summary 1 2 Healthy and growing real 3 Solid macroeconomic estate sector in Saudi Arabia Strong reputation for delivering fundamentals of the Kingdom of driven by favourable quality affordable housing in the Saudi Arabia demographics and a supportive Kingdom legislative backdrop 4 5 6 Pro
Slide 5: II. Macroeconomic & Sector Overview
II. Macroeconomic & Sector Overview
Slide 6: Macroeconomic & Real Estate Sector Overview
Macroeconomic & Real Estate Sector Overview The Saudi Real Estate Sector: Underpinned by a fast growing economy, vast wealth and attractive demographic fundamentals Population Distribution by Age and Nationality(000s) • 70% of the population under the age of 35 and 32% is under the age 3,100 Saudi N
Slide 7: Macroeconomic & Real Estate Sector Overview
Macroeconomic & Real Estate Sector Overview On-going supply shortfall forecast in residential units Total Residential Units '000 Units 8,246 7,169 7,207 6,080 6,217 5,363 2010-2014 2015-2019 2020-2024 Cumulative Demand Total Supply Cumulative Shortfall • Government’s Real Estate Development Fund (RE
Slide 8: III. Company Overview
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Slide 9: 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 • Market Capitalization as at 31 Mar 2014 was SR 13.5 bn 2007 2014-YTD (US$ 3.6 bn) Property Property As at 31 Mar 2014: Res
Slide 10: Land Development
Land Development Substantial and Geographically Diverse Land Bank Land revenue & gross margin (SAR Millions) • Land plots are purchased based on thorough analysis : 4,000 39.0% 44.4% 43.4% 50% — Target large cities with supply / demand gap 41.8% 3,500 38.7% 40% 3,000 — Follow expansion trends from t
Slide 11: Leasing Portfolio
Leasing Portfolio Growing Leasing Portfolio Occupancy Q1 SR in 000s Leasing revenue Leasing property 2014 120,000 Al Qasr Mall 87% Al Qasr (Apartments & Shops) 37% 100,000 Al Qasr Office Building 80,000 (in advanced stage of negotiation for leasing in whole to Govt. 0% Agency.) 60,000 108,428 Azizia
Slide 12: Strategy for Al Qasr and Al Tilal Focus on B-to-B leasing
Strategy for Al Qasr and Al Tilal Focus on B-to-B leasing Significant Increase of Lease Asset Base in Q1 2014 through acquisition In-line with DAAR’s Strategy to diversify income streams and increase recurring income assets. And driven by strong demand from Government institutions to provide housing
Slide 13: Leasing Portfolio Key Assets: Al Qasr Community (1/3)
Leasing Portfolio Key Assets Al Qasr Community (1/3) Location Al Qasr community is Dar Al-Arkan’s first Master Planned Community, which was started in 2006 and materially completed in 2012 • The Community is designed to cater for the middle-income market segment. it is divided into 5 zones and inclu
Slide 14: Leasing Portfolio Key Assets: Al Qasr Community (2/3)
Leasing Portfolio Key Assets Al Qasr Community (2/3) - Residential & Commercial Lease Assets Apartments, GLA 403k sqm. Villas, GLA 33k sqm. Street Shops, GLA 56k sqm. Office Building, GLA 20k sqm. Leasing activity in Q1 2014 • DAAR enjoys a unique market position by having such a large • Al Qasr Off
Slide 15: Leasing Portfolio Key Assets: Al Qasr Mall
Leasing Portfolio Key Assets Al Qasr Community (3/3) – Al Qasr Mall • In June 2012, Dar Al-Arkan opened the Al-Qasr Mall located adjacent Al-Qasr Mall by Numbers to the Al-Qasr project, which is the largest mall in Riyadh • Al-Qasr Mall includes a children amusement zone, a food court and Built-up A
Slide 16: Leasing Portfolio Key Assets: Azizia Towers
Leasing Portfolio Key Assets Azizia Towers Location 6km 4km 3km 2km 1km 2km 3km 4km 6km Al Azizia Towers by Numbers Built-up Area (sqm) 80K Residential Space GLA (sqm) 38.6K Commercial Space GLA (sqm) 4.8K # Apartments 278 Al Azizia Towers has a unique location on Prince Sultan Street in # Shops 6 t
Slide 17: Residential & Commercial Developments Overview
Residential & Commercial Developments Overview Horizontal Development Vertical Development • DAAR’s development strategy leverages the company’s • Dar Al Arkan goes “vertical” in order to: strengths to take advantage of the opportunities presented by the market. • Anchor the larger master plan and t
Slide 18: Shams Ar-Riyadh
Residential & Commercial Developments Shams Ar-Riyadh Location Shams Ar-Riyadh is Dar Al-Arkan’s second Master Planned Community and is located in Riyadh’s Al-Dariyia district • One of the largest residential development projects ever initiated in the Kingdom, comprising a total area of approximatel
Slide 19: Al Tilal
Residential & Commercial Developments Al Tilal Location • The project’s land development is fully completed. • Majority of residential & commercial plots sold. Activity in Q1 2014 • Design presented in Q4 2013 for a new commercial centre was rejected. New design is being procured to satisfy evolving
Slide 20: Shams Al-Arous
Residential & Commercial Developments Shams Al-Arous Location Shams Al-Arous is Dar Al-Arkan’s third Master Planned Community and is located approximately 12km east of downtown Jeddah. • All the land has been fully developed including access to Palestine road, which is one of the main highways in Je
Slide 21: Eastern Province Project
Residential & Commercial Developments Eastern Province Project - Located between Dammam and Ras Tanura DAAR is the master plan developer for this project and owns 1.5 mn sqm of the total 8.2 mn sqm. The project will be an integrated community providing to its residents and visitors with modern water
Slide 22: IV. Financial Performance
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Slide 23: Historical Performance
Historical Performance Revenue Revenue (SR (SR mm) mn) Recurring Revenue (SR mn) 4,000 120 3,500 100 3,000 2,500 80 2,000 60 3,313 3,557 108 1,500 2,931 40 1,000 53 20 31 500 836 924 25 0 15 0 2011 2012 2013 Q1 Q1 FY2011 FY2012 FY2013 Q1 2013 Q1 2014 2013 2014 Gross Profit (SR mn) & Margin (%) EBITD
Slide 24: Financial Performance: Income Statements
Financial Performance Income Statements SR in 000s FY 2011 FY 2012 FY 2013 Q1 2013 Q1 2014 Revenue 3,312,510 3,557,072 2,931,168 835,821 924,089 Cost of sales -1,943,497 -2,163,366 -1,778,097 -460,240 -521,320 Gross profit 1,369,013 1,393,706 1,153,071 375,581 402,769 Operating expenses -91,793 -154
Slide 25: Historical Performance
Historical Performance Current Ratio Net Debt/EBITDA Strong cash flow management. Covenant requirement 3.5x 3.4x 3.3x min 1.1x 2.8x 2.5x 2.5x 1.8x 1.5x 1.6x 1.1x 2011 2012 2013 Q1 2013 Q1 2014 2011 2012 2013 Q1 2013 Q1 2014 Net Debt/Total Assets Net Debt/Equity High financial 31.3% Prudent leverage
Slide 26: DAAR Cashflow and Debt Maturity Profile
DAAR Cashflow and Debt Maturity Profile SAR Cash Revenue New Debt Land Investment OPEX & Debt Cash Million Jan-13 Development Portfolio WC Repayment Mar-14 9,000 8,000 7,000 2,137 6,000 3,117 5,000 889 4,000 798 3,000 1,624 3,855 2,000 1,000 2,060 - 536 2500 Debt Maturity Profile • International Suk
Slide 27: Financial Performance: Balance Sheet
Financial Performance… cont’d) Balance Sheet SR in 000s FY 2011 FY 2012 FY 2013 Q1 2013 Q1 2014 Cash 2,505,774 535,771 2,279,132 834,614 2,060,260 Accounts Receivables 1,227,708 1,492,749 1,364,297 1,608,547 1,693,417 Pre-paid Expenses 506,761 632,781 484,201 615,678 550,037 Residential and commerci
Slide 28: 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
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