Slide 1: FY 2022 Results Presentation
FY 2022 RESULTS PRESENTATION MARCH 2022
Slide 2: Disclaimer
INTRODUCTION DISCLAIMER(1) PAGE 2 This presentation has been prepared by Equitativa Such statements reflect current views on, among Neither Equitativa nor Emirates REIT intend or among other things, general business and (Dubai) Limited (“Equitativa” or the “Manager”), other things, markets, activiti
Slide 3: Speakers
INTRODUCTION SPEAKERS PAGE 3 Sylvain Vieujot Alain Debare Sheikh Muhammed Moeen Executive Deputy Chairman Group Head of Real Estate Finance Director
Slide 4: Table of Contents
INTRODUCTION TABLE OF CONTENTS PAGE 4 1 2 3 FY 2022 HIGHLIGHTS MARKET OVERVIEW OPERATIONAL HIGHLIGHTS 4 5 CONSOLIDATED FINANCIAL STATEMENTS REVIEW CONCLUSION
Slide 5: Key Highlights
KEY HIGHLIGHTS INTRODUCTION PAGE 5 SUSTAINED IMPROVEMENT IN OPERATIONS AND NET ASSET VALUE Y-O-Y OCCUPANCY (1) INVESTMENT PROPERTIES (2) NET ASSET VALUE 84.5% USD 784.9m USD 372.6m +12.7 p.p. +6.5% +28.6% NET PROPERTY INCOME (3) NET PROFIT EARNINGS PER SHARE USD 55.3m USD 82.0m USD 0.257 -1.3% +29.9
Slide 6: Market Overview
MARKET OVERVIEW
Slide 7: Macroeconomic Overview
MARKET OVERVIEW MACROECONOMIC OVERVIEW PAGE 7 • The UAE economy continued its post-pandemic growth into 2022 on the back of • The UAE and Dubai Purchasing Managers Indices both recorded an increase in tourism, higher oil production and a rebounding services sector. a three-year peak in August 2022 a
Slide 8: Dubai Office Market Update
MARKET OVERVIEW DUBAI OFFICE MARKET UPDATE PAGE 8 DUBAI, OFFICE RENTS, Y-O-Y % CHANGE TO 4Q 2022 • Q-o-Q as well as Y-o-Y increases in number of new business registrations, and consequently occupier demand, has resulted in average occupancy rates 88.0% as at 4Q 2022, up from 78.9% a year earlier. •
Slide 9: Dubai Retail Market Update
MARKET OVERVIEW DUBAI RETAIL MARKET UPDATE PAGE 9 • The retail stock in Dubai has largely been stable with new completions being delayed to catch up with demand levels rather than risk a greater supply-demand imbalance. DUBAI RETAIL MARKET: TOTAL STOCK, EXPECTED DELIVERIES & RENTAL RATES • Other tha
Slide 10: Dubai School Market Update
MARKET OVERVIEW DUBAI SCHOOL MARKET UPDATE PAGE 10 DUBAI SCHOOL MARKET • There are currently 216 schools operating in Dubai for the 2022-2023 academic year, offering 17 curricula and catering to 326,000 students. • Owing to strong demographic trends, and with the Dubai population forecast to reach 5
Slide 11: Operational Highlights
OPERATIONAL HIGHLIGHTS
Slide 12: Operational Highlights
OPERATIONAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS PAGE 12 • Occupancy across the portfolio increased by 12.7 p.p. to 84.5% for • Total number of tenants for the portfolio increased by 13.7% from 327 to 372 FY 2022 with 4Q 2022 recording a 2.7 p.p. improvement q-o-q. and the retention rate by area was 75
Slide 13: Index Tower Operational Highlights
INDEX TOWER OPERATIONAL HIGHLIGHTS OFFICE PORTFOLIO PAGE 13 PAGE 13 • Strong growth in occupancy levels to 86.4% implying a y-o-y increase of 19.9 p.p. • 52 new leases, 60 renewals and 21 exits. • Strong demand for larger premium fully fitted and furnished offices, driving opportunity for higher rat
Slide 14: Office Park Operational Highlights
OFFICE PARK OPERATIONAL HIGHLIGHTS OFFICE PORTFOLIO PAGE 14 PAGE 14 • Strong recovery in occupancy levels to 88.1% implying a y-o-y increase of 15.8 p.p. • 13 new leases, 13 lease renewals and 7 tenant exits. • Good conversion of enquiries with some of the larger spaces sub-divided to meet demand fo
Slide 15: Loft Offices Operational Highlights
LOFT OFFICES OPERATIONAL HIGHLIGHTS OFFICE PORTFOLIO PAGE 15 PAGE 15 • Unique and attractive offering in Dubai Media City. • Notable market recovery in DMC since 4Q 2022 with good conversion of enquiries since September 2022. • Demand typically by SMEs for smaller offices on a yearly renewal basis.
Slide 16: European Business Centre Operational Highlights
EUROPEAN BUSINESS CENTRE OPERATIONAL HIGHLIGHTS OFFICE PORTFOLIO PAGE 16 PAGE 16 • Premium building within Dubai Investments Park with high visibility and metro access. • Occupancy decreased by 6.5 p.p. to 68.5% during FY 2022. • 19 new leases, 42 lease renewals and 16 exits. • Most of the smaller o
Slide 17: Building Operational Highlights
BUILDING 24 OPERATIONAL HIGHLIGHTS OFFICE PORTFOLIO PAGE 17 PAGE 17 • Excellent Location, part of phase one of Dubai Internet City. • New competition and refurbished properties within the freezone. • Occupancy increased by 8.6 p.p. y-o-y to reach 53.3%. • 3 new leases, 13 lease renewals and 4 tenant
Slide 18: Indigo Operational Highlights
INDIGO 7 OPERATIONAL HIGHLIGHTS OFFICE PORTFOLIO PAGE 18 PAGE 18 • Excellent location and with high visibility along Sheikh Zayed Road. • Occupancy remains at 100%. • Well established and high demand area for retail and commercial space. • Improved recovery of operating expenses through service char
Slide 19: Index Mall Operational Highlights
INDEX MALL(1) OPERATIONAL HIGHLIGHTS RETAIL PORTFOLIO PAGE 19 PAGE 19 • Occupancy at 48.5%, an increase of 10.5 p.p. y-o-y. • Excluding Floors 28 and 29, occupancy within the Index Mall now at 55.5% with 19 units leased (75% occupancy at ground floor level). • Opening of Smart Salem Medical Fitness
Slide 20: Trident Mall Operational Highlights
TRIDENT MALL OPERATIONAL HIGHLIGHTS RETAIL PORTFOLIO PAGE 20 PAGE 20 • Occupancy level of the retail area excluding terraces increased by 4.3 p.p. to 75.8% y-o-y. • Assessing a soft refurbishment to increase the attractiveness of the mall. • Optimisation of operational costs and improvement of servi
Slide 21: Education Portfolio Operational Highlights
EDUCATION PORTFOLIO OPERATIONAL HIGHLIGHTS PAGE 21 GEMS WORLD ACADEMY • Continued property improvements by GEMS, maintaining state of the art facilities for one of their flagship schools. LYCÉE FRANCAIS JEAN MERMOZ NET LETTABLE AREA: 42,700 SQM NET LETTABLE AREA: 16,594 SQM OCCUPANCY: 100% OCCUPANCY
Slide 22: Financial Highlights
TITLE01 FINANCIAL TITLE02 HIGHLIGHTS 22
Slide 23: Consolidated Statement of Comprehensive Income
CONSOLIDATED STATEMENT FINANCIAL HIGHLIGHTS PAGE 23 OF COMPREHENSIVE INCOME FOR THE YEAR ENDED IN USD ‘000 DEC 31, 2022 DEC 31, 2021 CHANGE Y-O-Y • Rental, Fee & Other Income amounted to USD 68.8m as at RENTAL, FEE & OTHER INCOME 68,785 62,092 10.8% December 31, 2022, a 10.8% increase y-o-y. Taking
Slide 24: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT FINANCIAL HIGHLIGHTS PAGE 24 OF FINANCIAL POSITION AS AT IN USD ‘000 DEC 31, 2022 DEC 31, 2021 CHANGE Y-O-Y • Driven by continued improved valuations, the investment properties fair value recorded a USD 48.0m increase INVESTMENT PROPERTIES - FAIR VALUE 784,932 737,132 6.5% (+6
Slide 25: Net Property Income Y-O-Y
NET PROPERTY INCOME FINANCIAL HIGHLIGHTS PAGE 25 Disregarding one-offs (1) -1.3% +14.6% USD M 60.0 45.0 One-off gain resulting One-off loss resulting 30.0 56.0 55.3 56.8 fl 49.5 (1.5) 1.5 15.0 6.5 12.8 13.5 14.1 14.3 14.1 14.2 11.7 12.0 12.3 0.0 FY 2021 FY 2022 FY 2021 FY 2022 1Q 2021 2Q 2021 3Q 202
Slide 26: Conclusion
lke Emirates REIT CONCLUSION EQUITATIVA,
Slide 27: Key Highlights
KEY HIGHLIGHTS CONCLUSION PAGE 27 SUSTAINED IMPROVEMENT IN OPERATIONS AND NET ASSET VALUE Y-O-Y OCCUPANCY (1) INVESTMENT PROPERTIES (2) NET ASSET VALUE 84.5% USD 784.9m USD 372.6m +12.7 p.p. +6.5% +28.6% NET PROPERTY INCOME (3) NET PROFIT EARNINGS PER SHARE USD 55.3m USD 82.0m USD 0.257 -1.3% +29.9%
Slide 28: Questions & Answers
lke Emirates REIT QUESTIONS & ANSWERS EQUITATIVA,
Slide 29: Thank You
Jee Emirates REIT THANK YOU EQUITATIVA,