Dar Al Arkan Real Estate Development Co. · TADAWUL:4300
Dar Al Arkan Real Estate Development — Q3 2023 Earnings Presentation
33 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2023
Slide 1: Dar Al Arkan
DAR AL ARKAN UL _<jXI jlo
Slide 2: Investor Presentation Q3 2023
Investor Presentation Q3 2023 2
Slide 3: Table of Contents
Table of Contents Page No. 1. Macro Economic Overview & KSA Real Estate Market 4 2. Key Business Indicators Overview 9 3. Financial Performance Overview 12 4. Overview of Assets Portfolio 16 5. Notable Changes During The Reporting Period 21 6. Appendix 26 3
Slide 4: Macro Economic Overview & KSA Real Estate Market
MACRO ECONOMIC OVERVIEW 1| & KSA REAL ESTATE MARKET 4
Slide 5: 2022 saw an accelerated growth but forecasted to slow down in 2023
Macroeconomic Overview 2022 saw an accelerated growth but forecasted to slow down in 2023 Average Brent Oil Prices GDP Growth Accelerated in 2022 Deficit Turns to Surplus in 2022 120 101 10.0% 5% 100 92 8.7% 3% 2.6% 8.0% 80 71 71 1% 64 6.0% 60 4.5% -1%2019 2020 2021 2022 2023P 2024P 2025P 2026P 42 4
Slide 6: The strong long-term fundamentals of the market remain intact
KSA Real Estate Sector Overview The strong long-term fundamentals of the market remain intact Positive Demographic Trends Supply Shortages Government Support KSA Total Population (Age/Gender) Total population projection of 36.2 million for 2022 ▪ Chronic under supply of residential housing. ▪ Real e
Slide 7: Residential deals increased QoQ and YoY in Q3 2023
KSA Real Estate Sector Overview Residential deals increased QoQ and YoY in Q3 2023 450 410 380 360 321 140.1 122.5 270 110.1 249 224 209 205 193 180 79.7 99.1 166 159 71.1 131 61.1 78.8 270.0 38.9 43.7 257.2 38.0 90 210.7 144.5 149.8 137.6 126.9 131.4 126.5 93.4 115.2 0 2012 2013 2014 2015 2016 2017
Slide 8: The Real Estate Price Index slightly increased QoQ in Q3 2023
KSA Real Estate Sector Overview The Real Estate Price Index slightly increased QoQ in Q3 2023 KSA Real Estate Price Index (YoY) KSA Real Estate Price Index (QoQ) 1.8% 1.6% 1.5% 1.0% 1.5% 0.5% 0.6% 0.5% 0.3% 1.2% 1.0% 0.3% 0.2% 0.0% 0.9% 0.8% -0.1% 0.7% 0.0% 0.6% -0.5% 0.3% 0.0% -1.0% Q3-22 Q4-22 Q1-
Slide 9: Key Business Indicators Overview
KEY BUSINESS INDICATORS 2| OVERVIEW 9
Slide 10: Q3 2023 – Key Business Indicators
Q3 2023 – Key Business Indicators Investment In Revenues (LTM) -16.3% EBITDA (LTM) 3.9% Development Properties (LTM) -17.2% SAR 3,192 mn SAR 1,312 mn SAR 2,456 mn (Q3 2022 : SAR 3,815 mn) (Q3 2022 : SAR 1,264 mn) (Q3 2022 : SAR 2,967 mn) Gross Debt/ Cash And Bank Book Value Per Share Capitalization
Slide 11: Dar Al Arkan Real Estate Assets
Dar Al Arkan Real Estate Assets ▪ DAAR’s Real Estate assets portfolio at cost is SAR 20.6 bn. ▪ DAAR has a strong pipeline of projects across the Kingdom totaling 12.9 mn sqm. Real Estate Properties Break up - SAR bn Total Land Area – SQM mn 57% 33% Investments in Project Lands & Lands, 15.1 Propert
Slide 12: Financial Performance Overview
FINANCIAL PERFORMANCE 3| OVERVIEW 12
Slide 13: Financial Performance – Q3 2023 Profitability
Financial Performance – Q3 2023 Profitability 1,800 Quarterly Revenues (SAR mn) 600 Gross Profit (SAR mn) & Margin (%) 42% 1,619 563 1,600 19 41% 27 500 39% 39% 40% 40% 1,400 38% 1,200 400 345 38% 36% 544 36% 316 1,000 886 826 268 304 301 775 743 764 716 300 24 285 36% 800 1,592 678 217 35% 35% 245
Slide 14: Financial Performance – Q3 2023 Cash Flow
Financial Performance – Q3 2023 Cash Flow Cash Flow – Q3 2023 (SAR mn) Income / Sources of Cash Uses of Cash / Expenses 14,000 12,000 10,000 8,000 549 - 326 6,000 2,250 175 372 2 716 4,000 5,710 2,000 4,168 - Starting Cash Revenue New Debt Working Capital Investment in Debt Opex Investment in Mainte
Slide 15: Financial Performance – Q3 2023 Debt
Financial Performance – Q3 2023 Debt 12,000 Gross Debt Vs Net Debt (SAR mn) 40% Debt* / Capitalization 10,742 10,840 35% 36% 9,980 10,290 34% 9,468 9,387 33% 33% 34% 10,000 30% 30% 8,378 8,367 29% 7,823 30% 8,000 4,393 5,929 4,153 6,608 5,710 5,034 3,866 4,168 6,000 20% 4,636 19% 19% 4,000 16% 16% 1
Slide 16: Overview of Assets Portfolio
OVERVIEW OF ASSETS 4| PORTFOLIO 16
Slide 17: Shams Ar Riyadh – Key Facts
Residential & Commercial Development Projects - KSA Shams Ar Riyadh – Key Facts Location - Situated in the Al-Ammariyah district (King Khalid Road), part of the growing northwest corridor of Riyadh, Shams Ar Riyadh is close to the heart of the city and is located just 19 km from KKI Airport and 9 km
Slide 18: Residential & Commercial Development Projects - KSA
Residential & Commercial Development Projects - KSA Parisiana South Jeddah Projects Eastern Province Projects Dar Al Mashaer - Located in Riyadh city and easily - Shams Al Arous is a master-planned, - Juman project is strategically located - Located in holy city of Mecca on the Al accessed through K
Slide 19: Commendatore Tower, Etoile Villas, Buraidah Hills
Residential & Commercial Development Projects - KSA Commendatore Tower- Jeddah Etoile Villas, Sedra- Riyadh Buraidah Hills, Qassim - The Commendatore Tower is to be built on a - Dar Al Arkan had won a contract to develop - Located in Buraidah city of Al-Qassim total land area of 11,928 sqm, comprise
Slide 20: Leasing Properties Portfolio
Leasing Properties Portfolio Al-Qasr Mall, Riyadh Land Area 61,949 m² Built up Area 235,288 m² Gross Leasable Area 75,137 m² No. of floors 3 Leasable Floors plus two parking Parking 1,579 Parking Spaces Latest Activity: ▪ 89% occupancy achieved by the end of Q3 2023. Al-Qasr Apartments, Riyadh GLA 1
Slide 21: Notable Changes During The Reporting Period
NOTABLE CHANGES DURING 5| THE REPORTING PERIOD 21
Slide 22: Dar Global Accounting and Project Update
Notable Changes During The Reporting Period Dar Global Accounting and Project Update (Reference to note 29 of interim consolidated financial statements) - On 28 February 2023, Dar Global PLC, an indirectly wholly owned subsidiary of the Group, had listed its shares on the London Stock Exchange’s mai
Slide 23: International Projects Developed by Dar Global PLC
International Projects Developed by Dar Global PLC Urban Oasis Tower, Dubai Da Vinci Tower, Dubai W Residences, Dubai DG 1, Dubai - The Urban Oasis Tower is located in - The Da Vinci Tower is a residential - The W Residences is a residential - DG 1 (Dar Global 1) Tower is located in the the Business
Slide 24: International Projects Developed by Dar Global PLC
International Projects Developed by Dar Global PLC Bosnia Projects Aida, Oman Les Vagues, Qatar - The site is situated in Ravne, Vareš, 38 km outside - In Dec 2021, Dar Al Arkan signed an MOU with - Les Vagues by Elie Saab sets new standards of Sarajevo, Capital of Bosnia & Herzegovina. Omran to dev
Slide 25: International Projects Developed by Dar Global PLC
International Projects Developed by Dar Global PLC Tierra Viva, Spain Marea, Finca Cortesin, Spain Tabano, Spain Oh So Close, London - Tierra Viva in Behanavís – Costa - Dar Benahavis acquired a plot of land - Dar Tabano acquired six plots of land - Oh So Close offers an extraordinary del Sol is an
Slide 26: Appendix
6| APPENDIX 26
Slide 27: Appendix I – Statement of Financial Position
Appendix I – Statement of Financial Position SAR in 000s FY 2020 FY 2021 FY 2022 Q3 2022 Q3 2023 Investment properties, net 1,519,116 1,110,414 1,077,808 1,083,701 1,039,249 Long-term development properties 18,246,583 19,285,287 20,563,563 19,834,299 19,473,240 Property and equipment, net 72,180 77,
Slide 28: Appendix II – Statement of Profit or Loss
Appendix II – Statement of Profit or Loss YTD Sep YTD Sep SAR in 000s FY 2021 FY 2022 Q3 2022 Q3 2023 2022 2023 Revenue 2,493,078 3,925,499 3,039,831 2,306,253 742,544 715,697 Cost of revenue (1,596,350) (2,467,912) (1,927,300) (1,404,469) (438,286) (430,343) Gross profit 896,728 1,457,587 1,112,531
Slide 29: Appendix III – Statement of Cash Flows
Appendix III – Statement of Cash Flows YTD Sep YTD Sep SAR in 000s FY 2020 FY 2021 FY 2022 2022 2023 Profit before Zakat 19,379 135,442 588,386 540,362 426,681 Adjustments for: Depreciation & Amortization 56,237 48,905 50,182 34,292 36,835 Provision for expected credit losses 2,516 4,453 0 0 0 Donat
Slide 30: Disclaimer
Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE OR himself independently based solely on the prospectus in relation to such securities DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, (including any supplement thereto) available when orders are confirmed before taking JAPAN
Slide 31: Our Offices
OUR OFFICES RIYADH, KSA BEIJING, CHINA LONDON, UK MARBELLA, DUBAI, UAE 12622 Makkah Road, 303-309, North Tower, 50 Hans Crescent, Conrad Dubai, Al Wizarat, Beijing Kerry Centre, Knightsbridge, SPAIN Sheikh Zayed Road, Beside Riyadh Marriott Hotel, No.1 Guanghua Road, London, SW1X ONA Marbella’s Gold
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Slide 33: Thank you
Investor Relations Thank you Riyadh – Saudi Arabia Tel: +966 11 206 9888 Ext:1680 ir@alarkan.com 33
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