Emirates Reit (ceic) Plc · NASDAQDUBAI:REIT
Emirates Reit (ceic) — H1 2020 Earnings Presentation
20 slides from Emirates Reit (ceic)'s earnings presentation, Sep 1, 2020
Slide 1: H1 2020 Call Presentation
2020 H1 2020 CALL P R E S E N TAT I O N
Slide 2: Speakers
SPEAKERS Sylvain Vieujot Alain Debare Sheikh Muhammed Moeen Chief Executive Officer Group Head of Real Estate Finance Director Managed by Equitativa 2
Slide 3: Market Overview
MARKET OVERVIEW
Slide 4: Dubai Real Estate Market Overview
DUBAI REAL ESTATE MARKET OVERVIEW Q2 2020 Rental Rents Hotel Growth Falling Slowing Retail Rental Rents Growth Bottoming Accelerating Out Office Residential Source: JLL Managed by Equitativa 4
Slide 5: Dubai Office Rents Y-o-Y % Change
DUBAI OFFICE RENTS Y-O-Y % CHANGE Q2 2020 • Average rents during H1 2020 in Dubai PRIME GRADE A CITYWIDE COMPOSITE fell by 7.0%. Prime office rents across Dubai fell 6.8% in the year to Q2 2020, whilst Y-o-Y Change -6.8% -5.9% -7.8% -7.0% Grade A and Citywide rents fell by 5.9% and 7.8% respectively
Slide 6: Dubai Market Outlook
DUBAI MARKET OUTLOOK • Whilst occupier requirements have increased over the latter stages of Q2, the majority of activity stems from cost saving and consolation requirements • Many landlords are willing to accommodate rent reviews given the current market backdrop and an increase in requests for ren
Slide 7: Portfolio Overview
PORTFOLIO OVERVIEW
Slide 8: Financial Highlights H1 2020
FINANCIAL HIGHLIGHTS H1 2020 • Total Property Income decreased by 6.1% year-on-year to USD 34.0m (AED 124.9m) • Provision on receivables increased to USD 3.8m (AED 13.9m) v/s USD 0.5m in H1 2019 (AED 2.0m) primarily due to rent payment delay from a large tenant • EBITDA decreased by 23.8% year-on-ye
Slide 9: Operational Highlights H1 2020
OPERATIONAL HIGHLIGHTS H1 2020 • Handling COVID • Occupancy 71%, a Y-o-Y decrease of 3% • Average rental rate decrease of 4% Y-o-Y • Weighted average lease term increased to 8.4 years • Rental Income* decreased by 6.7% • Net operating income decreased by 7.5% * Includes land rent Managed by Equitati
Slide 10: COVID Update H1 2020
COVID UPDATE H1 2020 • Immediate implementation of additional cleaning, • Increase in average lease term to 8.4 years sanitization and control measures • Renegotiations and new leases largely outweighing • Social distancing measures still in place at all properties terminations • Managed over 130 te
Slide 11: Property Operations Highlights
PROPERTY OPERATIONS HIGHLIGHTS H1 2020 LEASING ACTIVITY LOFT OFFICES • 50 new leases with c. 90,000 sqft of lease-able area • Occupancy stands at 66% at Loft Offices 1 and 2 • 68 renewals with c. 150,000 sqft of renewals • Completed exterior and facade painting works • 72 leases expired with 115,000
Slide 12: Property Highlights
PROPERTY HIGHLIGHTS H1 2020 ANNUALISED RENT UNEXPIRED LEASE TERM As of 30 Jun 2020 (excl. School in DIP) As of 30 Jun 2020 Managed by Equitativa 12
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 14: Net Operating/Property Income
NET OPERATING/PROPERTY INCOME (USD M) -7.5% 29.6 27.3 16.0 15.4 13.5 13.5 13.8 13.3 14.0 12.6 H1 2019 H1 2020 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Managed by Equitativa 14
Slide 15: EBITDA
EBITDA (USD M) -23.8% 20.2 15.4 11.6 9.3 8.6 8.8 7.4 8.0 5.4 4.4 H1 2019 H1 2020 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Managed by Equitativa 15
Slide 16: FFO
FFO (USD M) -85.7% 6.2 4.1 3.8 2.3 0.9 1.0 0.1 0.8 0.1 (0.3) (2.7) H1 2019 H1 2020 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Managed by Equitativa 16
Slide 17: Balance Sheet Overview
BALANCE SHEET OVERVIEW H1 2020 USD 984.4 USD 984.4 Right-of-use assets IN USD M 30 JUN 2020 30 JUN 2019 CHANGE 52.4 54.2 Lease Liability Trade & Other Investment Property 858.0 940.0 (8.7%) Receivables 42.7 31.1 Other Payables & 31.3 Derivative Liability Cash & Equivalents Total Assets* 984.4 1,097.
Slide 18: Summary
SUMMARY H1 2020 USD 858m 219,831 m2 As of 30 June 2020 PORTFOLIO VALUE NET LEASABLE AREA USD 398m 71% NET ASSET VALUE OCCUPANCY USD 1.31 per share 8.4 years NET ASSET VALUE WAULT(1) NAV per share is calculated by the REIT administrator. Growth rates are adjusted for dividends and annualized. For 201
Slide 19: Questions & Answers
QUESTIONS & ANSWERS EQUITATIVA
Slide 20: Thank You
THAN R'YQU EQUITATIVA