Dar Al Arkan Real Estate Development Co. · TADAWUL:4300
Dar Al Arkan Real Estate Development — Q2 2016 Earnings Presentation
27 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2016
Slide 1: Investor Presentation Q2, 2016
Investor Presentation Q2, 2016 www.alarkan.com
Slide 2: Table of Contents
Table of Contents I. Macro-economic & Sector Overview II. Company Overview & Financial Performance III. Company Activities IV. Investment Summary V. Appendix a) P&L b) Balance sheet 2
Slide 3: I. Macro-economic & Sector Overview
I. Macro-economic & Sector Overview
Slide 4: Macroeconomic Overview
Macroeconomic Overview The endorsed KSA economic reform is aimed to implement efforts in curbing dependence on oil revenue. The National Transformation Program aims to transform the economy in a protracted period of economic decline. • KSA economy has been adversely affected by the collapse in GDP G
Slide 5: KSA Demographic & Tourism
KSA Demographic & Tourism Despite challenges, KSA real estate market remains attractive due to growing population, favourable demographics, growing affluence and rise in tourism • The Kingdom has the largest population in the GCC region. From Age Wise Population Breakup 2010-2015, the population has
Slide 6: Ministry of Housing
Ministry of Housing The Ministry of Housing is determined to provide affordable housing to average citizen, raising the Saudi home ownership ratio to 52%. It has embarked on delivering 1.5 million homes over the next 5 years. • The ministry plans to allocate a total of SAR59 billion over the next 5
Slide 7: Key Developments in Real Estate Sector
Key Developments in Real Estate Sector Effects of government regulations, aimed at increasing supply of residential land and easing mortgages to individual buyers, are expected in coming quarters. Vacant land fee is the talk of the town, however details are still being finalized. • In June, the gove
Slide 8: KSA Real Estate Overview
KSA Real Estate Overview Real estate market is realigning its direction as the government takes austerity measures. Residential undersupply theme remains intact, whilst the overall market stagnates pending outcomes of regulatory and macroeconomic uncertainties. • Despite short term challenges on the
Slide 9: KSA Real Estate Overview – Riyadh Land Transactions
KSA Real Estate Overview – Riyadh Land Transactions Buyers and investors take cautious stance as land transactions slow down in the wake of the economic slow down and in anticipation of the new land tax. • Due to challenges faced by the economy in 2015, the real estate land Riyadh’s Land Transaction
Slide 10: KSA Real Estate Overview – Residential & Office Market
KSA Real Estate Overview – Residential & Office Market Sale prices of residential properties continued to remain under pressure, as easier mortgage regulations are yet to spur demand. Office lease rates are bottoming out as demand shifts from public sector to private sector Rental Peformance • In th
Slide 11: KSA Real Estate Overview – Retail & Hospitality
KSA Real Estate Overview – Retail & Hospitality After remaining under pressure in 2015, retail lease rates have started to show signs of continued stability. Hospitality activity in the Kingdom remained dampened as occupancy rates and ADRs dipped. • Retail lease rates remained stable in the last two
Slide 12: II. Company Overview & Financial Performance
II. Company Overview & Financial Performance
Slide 13: 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 As at 30 Jun 2016: 100% 2% • Market Capitalization: SAR 7 bn (US$ 1.87 bn) 17% 17% Property management • Total number of emp
Slide 14: Financial Performance
Financial Performance Q2, 2016 Profitability Revenue (SAR mn) Recurring Revenue (SAR mn) • Revenue decreased 23% to SAR 408 mn (2015, 1,000 40 Q2 SAR 529 mn) driven by slower than 800 37 37 30 35 35 expected land trading volumes in KSA owing to 600 31 31 30 33 33 33 challenging market conditions. 40
Slide 15: Financial Performance … cont’d
Financial Performance … cont’d Q2, 2016 Balance Sheet Cash Flow Q2 2016 (SAR mn) • Liquidity Position: Cash balance remained 2,500 same at SAR 1.5 bn inspite of land purchase 122 facilitated by reduction in working capital 409 2,000 561 122 • Working Capital: Receivables decreased by 408 1,500 SR 19
Slide 16: Financial Performance … cont’d
Financial Performance … cont’d Q2, 2016 Funding • Net debt stands at SAR 4,630 mn (Q1, 2016 SAR 4,755 mn) gross Gross Debt/Capitalization Q2, 2016 Debt Profile (SAR mn) debt / capitalization stands at 25.4% 30% 26% 26% 27% 26% 26% 26% 25% Murabaha • Maturities are well spread and 31% cash management
Slide 17: III. Company Activities
old y DI sla By DAR ALARKAN Il]. Company Activities
Slide 18: Land Development
Land Development Substantial and Geographically Diverse Land Bank • Land plots are purchased based on thorough analysis : Land revenue & gross margin (SAR Millions) — Target large cities with supply / demand gap 38.7% 42.0% 45.6% 44.8% 3,000 44.2% 42.9% 44.3% 43.0% 43.5% — Follow expansion trends fr
Slide 19: Properties
Properties Al Qasr Community Al Qasr Mall Others Al-Qasr Community by Numbers Al-Qasr Mall by Numbers Built-up Area (sqm) 1.2mn Housing Capacity 13,000 Built-up Area (sqm) 230k Total # Residential Units 3,051 Total # Villas 254 GLA (sqm) 76k Total # Apartments 2,797 # Leasable Units 429 # Villas for
Slide 20: Residential and Commercial Development
Residential and Commercial Development Shams Ar Riyadh Juman Shams Al Arous and Al Tilal Shams Ar-Riyadh is Dar Al-Arkan’s Juman is located in Dammam and will be an Shams Al Arous is the company’s third Master second Master Planned Community and is integrated, Master Planned community providing Plan
Slide 21: IV. Investment Summary
IV. Investment Summary
Slide 22: Investment Summary
Investment Summary 1 Healthy and growing real 2 3 estate sector in Saudi Arabia Longstanding land price Progress with revenue driven by favorable underlying appreciation with some recent diversification through leasing demographics and continued weakening from macro and off plan sales supportive leg
Slide 23: V. Appendix
old y DI sla By DAR ALARKAN V. Appendix
Slide 24: Financial Performance – Income Statements
Financial Performance a) Income Statements SR in 000s FY2013 FY 2014 FY 2015 Q2, 2015 Q2, 2016 H1, 2015 H1, 2016 Revenue 2,931,168 3,056,060 2,211,349 528,689 407,557 1,251,046 842,164 Cost of revenue (1,778,097) (1,756,805) (1,228,117) (299,326) (222,862) (690,760) (465,873) Gross profit 1,153,071
Slide 25: Financial Performance – Balance Sheet
Financial Performance b) Balance Sheet SR in 000s FY2013 FY 2014 FY 2015 H1, 2015 H1, 2016 Cash 2,279,132 2,310,196 1,001,061 860,534 1,496,749 Accounts Receivables 1,364,297 1,747,778 1,948,687 1,979,536 1,375,614 Pre-paid Expenses 484,201 816,697 974,809 968,129 681,611 Project in Progress-ST 44,5
Slide 26: 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
Slide 27: Dar Al-Arkan – Built for Life
1H) {Ht old II yl DAR AL-ARKAN ls BUILT FOR LIFE
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