Dar Al Arkan Real Estate Development Co. · TADAWUL:4300
Dar Al Arkan Real Estate Development — Q2 2019 Earnings Presentation
23 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2019
Slide 1: Investor Presentation Q2 2019
Investor Presentation Q2, 2019 www.daralarkan.com
Slide 2: Table of Contents
Table of Contents Content Page No. 1. Macro Economic Overview & KSA Real Estate Market 3 2. Overview of Dar Al Arkan 6 3. Financial Performance Overview 10 4. Overview of Assets Portfolio 14 5. Appendix 18 2
Slide 3: Macro Economic Overview & KSA Real Estate Market
Divider Page 1. Macro Economic Divider Page& KSA Overview Real Estate Market 3
Slide 4: Macroeconomic Overview
Macroeconomic Overview The Government is committed to drive the economy. It has announced the largest ever budget of SAR 1.1 trillion for 2019 keeping the objectives of Vision 2030 in focus. This, along with opening of the economy for business, is expected to boost and diversify the economy. GDP Gro
Slide 5: KSA Real Estate Sector Overview
KSA Real Estate Sector Overview Value of Real Estate Transactions in KSA (SAR bn) KSA Real Estate Price Index (QoQ) 1.0% 80 0.4% 27.1 0.0% -0.6% -0.4% -0.3% 60 -0.5% -0.6% -0.7% 13.6 -1.0% 40 13.4 13.9 17.4 -1.6% 11.6 8.7 8.9 50.6 7.3 -2.0% -2.3% 20 36.8 33.4 31.9 26.5 27.1 23.4 27.5 18.8 0 -3.0% Q2
Slide 6: Overview of Dar Al Arkan
2. Overview of DarDivider Page Al Arkan Divider Page
Slide 7: Company Overview
Company Overview Prudent Real Estate Acquisition Strong Financial Position Diversification Strategies Paying Off In soft market conditions, management’s DAAR maintains a strong balance sheet with DAAR’s strategy is to generate revenue rigorous acquisition policies are proving SAR 6.8 bn in cash and
Slide 8: Q2 2019 – Key Business Indicators
Q2 2019 – Key Business Indicators Investment in Revenues (LTM) -58% EBITDA (LTM) -54% Development Properties (LTM) +116% SAR 3,585 mn SAR 724 mn SAR 4,282 mn (At Q2 2018 : SAR 8,496 mn) (At Q2 2018 : SAR 1,573 mn) (At Q2 2018 : SAR 1,981 mn) Gross Debt/ Cash and Bank Book Value Per Share Capitalizat
Slide 9: Dar Al Arkan Real Estate Assets
Dar Al Arkan Real Estate Assets DAAR’s total Real Estate Properties as per the financial DAAR has a strong pipeline of projects across the Kingdom statements is SAR 16.8 bn. totaling 12.4 mn sqm. Real Estate Properties Break up - SAR bn Projects Lands Break up (Sqm) Al Tilal Shams Al 0.2 mn Arou
Slide 10: Financial Performance Overview
Divider Page 3. Financial DividerPerformance Page Overview 10
Slide 11: Financial Performance – Q2 2019 Profitability
Financial Performance – Q2 2019 Profitability Quarterly Revenues (SAR mn) Gross Profit (SAR mn) & Margin (%) 3,000 500 35% 40% 465 475 2,500 2,794 400 24% 30% 2,435 2,000 353 22% 300 19% 17% 17% 18% 19% 1,500 1,785 20% 266 1,483 200 1,000 15% 202 988 928 160 165 152 159 10% 500 846 824 100 456 - 0 0
Slide 12: Financial Performance – Q2 2019 Cash Flow
Financial Performance – Q2 2019 Cash Flow Cash Flow (SAR mn) 8,000 Income / Sources of Cash Uses of Cash 6,000 800 1,448 928 222 115 4,000 859 2 320 4,710 2,000 3,472 - Starting Cash Revenue New Debt Debt Working Opex Investment in Investment in Maintenance Ending Cash Repayment Capital Properties A
Slide 13: Financial Performance – Q2 2019 Debt
Financial Performance – Q2 2019 Debt Gross Debt Vs Net Debt (SAR mn) Debt* / Capitalization 9,000 8,272 40% 6,995 6,938 6,830 6,747 6,663 7,500 6,480 6,430 5,782 30% 26% 25% 26% 6,000 22% 25% 2,674 2,959 5,240 23% 3,160 4,500 4,937 4,903 20% 5,160 4,710 3,472 22% 21% 3,000 4,321 3,979 10% 14% 1,500
Slide 14: Overview of Assets Portfolio
Divider Page Divider Pageof 4. Overview Assets Portfolio
Slide 15: Residential & Commercial Development Projects
Residential & Commercial Development Projects Riyadh Projects Jeddah Projects Eastern Province Projects I Love Florence, Dubai - Situated in the Al-Ammariyah district - The site is situated 12 kms from - The project is located in the - The I Love Florence Tower project is (King Khalid Road), part of
Slide 16: Portfolio Summary – Completed Residential Properties
Portfolio Summary – Completed Residential Properties Parisiana South Parisiana Living Naeem Eljiwar - Located in Riyadh city and easily accessed - Located in Riyadh city and easily - Located within the boundary of the through King Fahad Road and major accessed through King Fahad Road, Prophet’s Mosq
Slide 17: Leasing Properties Portfolio
Leasing Properties Portfolio Al-Qasr Mall, Riyadh Land Area 61,949 m² Built up Area 220,202 m² Gross Leasable Area 78,958 m² No. of floors 3 Leasable Floors plus two parking Latest Activity: • 90% occupancy achieved • Cinema multiplex with 15 screens opened in March 2019. • Bowling activity fully op
Slide 18: Appendix
Divider Page Divider 5. Page Appendix
Slide 19: Appendix I – Statement of Profit or Loss
Appendix I – Statement of Profit or Loss SAR in 000s FY 2017 FY 2018 H1 2018 H1 2019 Q2 – 2018 Q2 - 2019 Revenue 4,734,682 6,412,265 4,578,713 1,751,526 1,784,800 927,848 Cost of revenue (3,620,672) (5,355,114) (3,837,928) (1,390,522) (1,518,626) (726,128) Gross profit 1,114,010 1,057,151 740,785 36
Slide 20: Appendix II – Statement of Financial Position
Appendix II – Statement of Financial Position SAR in 000s FY 2017 FY 2018 Q2 – 2018 Q2 - 2019 Investment properties, net 3,290,010 1,693,141 3,254,929 1,673,459 Long-term development properties 14,751,565 14,148,262 12,017,631 14,749,018 Property and equipment, net 70,925 83,085 83,187 80,714 Invest
Slide 21: Appendix III – Statement of Cash Flows
Appendix III – Statement of Cash Flows SAR in 000s FY 2017 FY 2018 H1 - 2018 H1 - 2019 Profit before Zakat 567,811 521,855 450,995 103,044 Adjustments for: Depreciation & Amortization 76,775 78,355 38,898 27,416 End of service indemnities 5,129 4,122 2,091 1,933 Finance costs 441,523 511,652 264,244
Slide 22: 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 23: Thank you
Investor Relations Riyadh – Saudi Arabia Thank you Tel: +966 11 206 9888 Ext:1670 ir@alarkan.com
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