Emirates Reit (ceic) Plc · NASDAQDUBAI:REIT
Emirates Reit (ceic) — Q3 2021 Earnings Presentation
23 slides from Emirates Reit (ceic)'s earnings presentation, November 2021
Slide 1: Emirates REIT Q3 2021 Presentation
as Emirates REIT Q3 2021 PRESENTATION EQUITATIVA
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Equitativa regulatory obligations, neither Equitativa nor Emirates Information contained in this presentation relating to the (Dubai) Limited (“Equitativa” or the “Manager”), as the REIT intend or undertake to update or revise forward- REIT or its sh
Slide 3: Speakers
SPEAKERS Sylvain Vieujot Alain Debare Sheikh Muhammed Moeen Chief Executive Officer Group Head of Real Estate Chief Financial Officer Managed by Equitativa 3
Slide 4: Q3 Updates
Q3 UPDATES
Slide 5: Key Highlights
KEY HIGHLIGHTS POSITIVE MOMENTUM CONTINUES IN Q3 2021 WITH KEY INDICATORS IMPROVING YTD OCCUPANCY RENTAL RATES +2.3 % +3.4 % VALUATION NET ASSET VALUE +4.8 % +22.2 % Managed by Equitativa 5
Slide 6: Index Tower and Jebel Ali School Update
INDEX TOWER AND JEBEL ALI SCHOOL UPDATE INDEX TOWER UPDATE JEBEL ALI SCHOOL UPDATE • Further to the sale of a half of a shell and core office floor, • During Q3 award received in favor of Emirates REIT for the Index Tower experienced further improvements: entire outstanding dues including costs - Q-
Slide 7: Appointment of Deputy CEO
APPOINTMENT OF DEPUTY CEO THIERRY LELEU Mr. Thierry Leleu, Deputy CEO of Equitativa, brings more than 25 years of experience in real estate investment and financing with him. Prior to joining Equitativa, he served as Senior Vice President of Acquisitions for DICO Group, the parent company of real es
Slide 8: Market Overview
MARKET OVERVIEW
Slide 9: Macro Economic Update Q3 2021
MACRO ECONOMIC UPDATE Q3 2021 UAE GDP • Forecasts for UAE GDP indicate a YoY growth of 2.1% in 2021 (3.1% for Dubai) 5.0 3.0 • Growth rate is expected to strengthen in 2022 with UAE Central BANK forecasting 4.2% GDP 1.0 YoY% Change growth (3.4% for Dubai) -1.0 • The economy is expected to experience
Slide 10: Dubai Office Market Supply
DUBAI OFFICE MARKET SUPPLY Q3 2021 • Total office stock stands at 9m sqm an increase of DUBAI OFFICE SUPPLY 2017 - Q3 2021 1.0% from year end 2020 10 +0.7% +2.2% +2.2% +1.0% • Over 90,000 sqm of total office space has been 8 delivered YTD 2021, including, Deira Enrichment Project and the first phase
Slide 11: Dubai Commercial Market Trends
DUBAI COMMERCIAL MARKET TRENDS Q3 2021 • Most office districts have seen average year-on-year rents either stabilize or increase • The sharpest rise in occupancy levels were witnessed in DIFC, indicating the market has appetite for Grade A stock • The office leasing market has seen a number of new e
Slide 12: Portfolio Overview
PORTFOLIO OVERVIEW
Slide 13: Operational Highlights
OPERATIONAL HIGHLIGHTS Q3 2021 • Market gradually recovering and attracting strong FOCUS ON COMMERCIAL OPERATIONS tenant attention, driving demand primarily in DIFC • Strong tenant retention results at 77% by area and 80% to the number of leases • Occupancy across the portfolio grew by 2.3% to 71% Y
Slide 14: Property Operations Highlights
PROPERTY OPERATIONS HIGHLIGHTS Q3 2021 INDEX TOWER LOFT OFFICES (3) • Occupancy at 60.3%(1) (Y-o-Y +13.7%) • Occupancy at 59.9% (Y-o-Y -4.4%) • Strong retention of existing tenants • Cluster with small SME’s most impacted by Covid-19 disruption • Successful increase in occupancy from premium office
Slide 15: Y-o-Y Occupancy Change
Y-O-Y OCCUPANCY CHANGE Q3 2021 Managed by Equitativa 15
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 17: Financial Highlights
FINANCIAL HIGHLIGHTS Q3 2021 • Total Property Income increased by 3.1% Y-o-Y from • EBITDA increased by 65.7% Y-o-Y from USD 22.9m USD 50.6m (AED 185.9m ) to USD 52.2m (AED 191.7m) (AED 84.1m) to USD 38.0m (AED 139.6m) • Total Property Expenses declined by 3.8% Y-o-Y from • Fair Value of Investment
Slide 18: Net Property Income
NET PROPERTY INCOME (USD M) +4.8% 42.5 40.6 18.5 15.4 14.0 13.8 13.3 13.3 11.4 11.7 12.3 Q3 2020 Q3 2021 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 NET PROPERTY INCOME UP Y-O-Y BY 4.8% Managed by Equitativa 18
Slide 19: EBITDA
EBITDA (USD M) +65.7% 38.0 22.9 23.0 8.8 8.0 7.6 8.3 7.4 6.3 6.7 4.4 Q3 2020 Q3 2021 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 EBITDA UP Y-O-Y BY 65.7% Managed by Equitativa 19
Slide 20: FFO
FFO (USD M) +12.4x 16.9 16.0 1.3 1.0 1.2 0.1 0.1 0.7 0.4 (0.3) (0.8) (2.7) Q3 2020 Q3 2021 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 FFO UP Y-O-Y BY 12.4x Managed by Equitativa 20
Slide 21: Balance Sheet Overview
BALANCE SHEET OVERVIEW YTD 2021 IN USD THOUSAND Q3 2021(1) FY 2020 (2) Q3 2020(1) CHANGE YTD USD 848.0 USD 848.0 INVESTMENT PROPERTY 723,351 690,342 835,569 +4.8% Receivables & Others 103.5 87.7 Payables & Others Cash & Equivalents 21.1 TOTAL ASSETS 847,968 803,385 956,901 +5.5% ISLAMIC FINANCING 48
Slide 22: Questions & Answers
QUESTIONS & ANSWERS EQUITATIVA
Slide 23: Thank You
THAN RK YQU EQUITATIVA