Dar Al Arkan Real Estate Development Co. · TADAWUL:4300
Dar Al Arkan Real Estate Development — Q3 2015 Earnings Presentation
21 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2015
Slide 1: Investor Presentation Q3, 2015
Investor Presentation Q3, 2015 www.alarkan.com
Slide 2: 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Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES.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 3: Table of Contents
Table of Contents I. Investment Summary II. Macroeconomic & Sector Overview III. Company Overview & Financial Performance IV. Company Activities 3
Slide 4: I. Investment Summary
old y DI sla By DAR ALARKAN I. Investment Summary
Slide 5: Investment Summary
Investment Summary 1 2 3 Healthy and growing real estate sector in Saudi Arabia driven Continued favourable trends in Continued focus on premium by favourable demographics and a supportive legislative backdrop land price appreciation margins 4 5 6 Proven ability to develop large- A conservative fina
Slide 6: II. Macroeconomic & Sector Overview
II. Macroeconomic & Sector Overview
Slide 7: Market Outlook
Market Outlook The Long-term outlook of the Saudi Real Estate sector remains positive Residential Land Prices – SAR/sqm 4,000 0.5% 1.0% 3,000 3,778 3,798 Saudi Real Estate Market -0.1% 2,000 0.0% 2,159 2,156 1,000 • (1)According to research reports, the long-term outlook of the RE sector remains pos
Slide 8: Macroeconomic & Real Estate Sector Overview
Macroeconomic & Real Estate Sector Overview The Saudi Real Estate Sector: Underpinned by a fast growing economy, vast wealth and attractive demographic fundamentals Population Distribution by Age and Nationality(000s) 3,100 Saudi Non-Saudi • 70% of the population under the age of 35 and 32% is under
Slide 9: Ministry of Housing (MoH) & Real Estate Development Fund (REDF)
Ministry of Housing (MoH) & Real Estate Development Fund(REDF) On-going supply shortfall forecast in residential units and overview on DAAR and white land tax • Majority of homes are self built and financed from savings, personal '000 Units Total residential units loans or REDF loans. This creates g
Slide 10: III. Company Overview & Financial Performance
III. Company Overview & Financial Performance
Slide 11: Company overview: Dar Al-Arkan – A leading real estate developer in Saudi Arabia
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 Sept 2015: 100% 2% • Market Capitalization: SAR 7.5 bn (US$ 2.0 bn) 17% 17% Property management 80% 33% & leasing •
Slide 12: Financial Performance
Financial Performance Q3, 2015 Profitability • Revenue decreased 28% to SAR 541 mn Revenue (SAR mn) Recurring Revenue (SAR mn) (2014, Q3 SAR 751 mn) driven by slower 1,000 40 than expected land trading volumes in KSA. 800 30 33 35 • Land sales revenue SAR 506 mn (2014, Q3 : 31 31 33 33 600 28 30 SAR
Slide 13: Financial Performance … cont’d (Balance Sheet)
Financial Performance … cont’d Q3, 2015 Balance Sheet Cash Flow (SAR mn) • Liquidity Position: Cash balance 1,500 increased to SAR 951 mn (Q2, 2015: SAR 861 mn). 156 94 541 • Debt repaid SAR 156 mn as per 1,000 202 installment due dates of existing Murabahas. No new debt was issued in the quarter 50
Slide 14: Financial Performance … cont’d (Funding)
Financial Performance … cont’d Q3, 2015 Funding • Net debt stands at SAR 5,385 mn Cost of funding Q3, 2015 Debt Profile (SAR mn) (Q2, 2015 SAR 5,627 mn). Gross debt/Capitalization stands at 26%. 12.0% • Maturities are well spread and 7.8% 7.8% cash management is prudent. 8.0% 6.9% 6.4% Murabaha 5.8%
Slide 15: Financial Performance… cont’d: Income Statements
Financial Performance… cont’d Income Statements SR in 000s FY 2012 FY2013 FY 2014 Q3, 2014 Q3, 2015 2014 (9 months) 2015 (9 months) Revenue 3,557,073 2,931,168 3,056,060 751,014 540,949 2,449,313 1,791,995 Cost of revenue (2,163,367) (1,778,097) (1,756,805) (454,880) (298,790) (1,456,170) (989,550)
Slide 16: Financial Performance… cont’d: Balance Sheet
Financial Performance… cont’d Balance Sheet SR in 000s FY 2012 FY2013 FY 2014 Q3, 2014 Q3, 2015 Cash 535,771 2,279,132 2,310,196 3,079,267 950,997 Accounts Receivables 1,492,749 1,364,297 1,747,778 1,905,263 1,954,339 Pre-paid Expenses 632,781 484,201 816,697 900,216 987,481 Project in Progress-ST 4
Slide 17: IV. Company Activities
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Slide 18: Land Development
Land Development Substantial and Geographically Diverse Land Bank Land revenue & gross margin (SAR Millions) • Land plots are purchased based on thorough analysis : — Target large cities with supply / demand gap — Follow expansion trends from the city centre to the newer 4,000 39.0% 60% 45.6% 42.9%
Slide 19: Property Management and Leasing
Property Management and Leasing Al Qasr Community Al Qasr Mall Others Al-Qasr Community by Numbers Al-Qasr Mall by Numbers Built-up Area (sqm) 1.2mn Built-up Area (sqm) 230k Housing Capacity 13,000 Total # Residential Units 3,051 GLA (sqm) 76k Total # Villas 254 # Leasable Units* 429 Total # Apartme
Slide 20: Residential and Commercial Development
Residential and Commercial Development Shams Al Riyadh Juman Shams Al Arous and Al Tilal Shams Ar-Riyadh is Dar Al-Arkan’s Juman project located in Dammam will be an Shams Al Arous is company’s third Master second Master Planned Community and integrated community providing to its residents Planned C
Slide 21: {Ht old II yl
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Dar Al-Arkan Real Estate Development — Q3 2015 Earnings Presentation on 6ix