Globe Residency REIT · PSX:GRR
Globe Residency REIT — Dolmen City REIT — Investor Presentation (November 2019)
15 slides from Globe Residency REIT's investor presentation, Nov 18, 2019
Slide 1: Dolmen City REIT
DOLMEN CITY REIT Pakistan’s First Listed Shariah Compliant Rental REIT 18th November 2019
Slide 2: Table of Contents
Table of Contents 01 Introduction – Sector Overview 02 Introduction - Company Overview 03 Operational and Financial Highlights 04 Opportunities and Challenges to REITs
Slide 3: House Resolution quote on investing in commercial real estate
“To provide all investors with the same opportunity to invest in large scale commercial real estate that previously was open only to large financial institutions and wealthy individuals through direct investment in such real estate”. House Resolution The US House of Representatives President Dwight
Slide 4: Introduction - Sector Overview: REIT Units
1. Introduction - Sector Overview A highly regulated and disciplined corporate structure to pool funds for the purpose of real estate investment. Purchase Invest REIT UNITS INVESTORS Income Income REAL ESTATE ASSETS Ownership of the Real Estate is represented through REIT Units. Investors can invest
Slide 5: How REITs Work
1. Introduction - Sector Overview How REITs Work REIT Scheme Investment Managed by RMC Trustee Investors Purchase Stock Exchange Listing Property Valuation Real Estate vested in trustee Development / Property Management Dividends and Capital Appreciation Rent and Sale Proceeds Distribution
Slide 6: REITs in Pakistan
1. Introduction - Sector Overview REIT’s in Pakistan REITs are regulated by the Securities & Exchange Commission of Pakistan ‘SECP’ under the REIT Regulations 2015 as amended in 2018. These regulations are comprehensive with principal focus on protection of the interest of general investors in a
Slide 7: Types of REITs in Pakistan
1. Introduction - Sector Overview Types of REITs in Pakistan Developmental REIT: Established with the objective of development, construction or refurbishment of real estate for industrial, commercial, residential or a combination of uses. Rental REIT: Established with the purpose of generating r
Slide 8: Introduction - Company Overview
2. Introduction - Company Overview Country’s Finest Mix-Use Development; revolutionized the retail landscape of Pakistan. Karachi’s Favorite destination - the Components of Dolmen City Project: Dolmen Mall, Clifton integrates the - Harbour Front: Nineteen storeys state-of-the art office best in
Slide 9: Introduction - Company Overview: Scheme Key Facts
2. Introduction - Company Overview Nature of the Scheme Perpetual, Rated, Listed, Closed-end Shariah Compliant Rental REIT • Dolmen Mall Clifton 547,875 sq.ft. Real Estate • The Harbour Front 256,544 sq.ft. Total 804,419 sq.ft. PKR 22,237 Million (at inception) Fund Size PKR 46,233 Million as at Jun
Slide 10: Operational and Financial Performance: Tenancy Profiles
3. Operational and Financial Performance MALL - TENANCY PROFILE (AS AT JUNE 2019) Vacant Accessories 1% 5% Currently Operating with the finest brands and Companies in Miscellaneous 23% Pakistan. Apparel Jewellery & 40% Tenants include: Watches 2% Home & Furniture 7% Food 14% Cosmetics Entertainm
Slide 11: Operational and Financial Highlights
3. Operational and Financial Highlights 30 June 2019 30 June 2018 (Rupees in '000) % INCOME Rental income 3,344,499 3,046,978 9.76 Marketing income 182,606 210,165 (13.11) 3,527,105 3,257,143 8.29 Administrative and operating expenses (513,267) (484,207) 6.00 Net operating income 3,013,838 2,772,936
Slide 12: Operational and Financial Highlights: Dividend Payout and Taxes
3. Operational and Financial Highlights Dividend Payout on the rise (YOY growth) Cumulative Contribution to Government in terms of Federal and Provincial Taxes Dividend Payout (PKR ' Million) 4,000 3,500 Taxes Paid 3,000 (PKR ' Million) 2,935 2,500 2,668 2,557 2,633 2,000 2,313 2,000 2,190 1,500 1,6
Slide 13: Opportunities and Challenges to REITs
3. Opportunities and Challenges to REIT’s REIT’s can offer the following: Large scale development REIT’s will bring the much needed respite to the commercial real estate sector and enable developers to both unlock value and create liquidity. Access to funds allows for quality development benefitti
Slide 14: Opportunities and Challenges to REITs
3. Opportunities and Challenges to REIT’s Awareness of REIT’s as new investor class REITs bring real estate, which offers higher Alpha over risk free investments, within the reach of retail/common investors. Documentation of Real Estate Sector REIT’s are a critical instrument in governments hand
Slide 15: Challenges to REITs in Pakistan
3. Opportunities and Challenges to REIT’s Challenges to REITS in Pakistan : Real Estate Sector under transition from informal sector to formal sector Absence of sound governance structure within the industry creates lack of good practices, unreliable construction quality, and legally protected pur
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