Globe Residency REIT · PSX:GRR
Globe Residency REIT — Dolmen City REIT — FY2020 Earnings Presentation
16 slides from Globe Residency REIT's earnings presentation, Jun 30, 2020
Slide 1: Dolmen City REIT Analyst Briefing for the year end 30th June 2020
DOLMEN CITY REIT Analyst Briefing for the year end 30th June 2020
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 on investing in large scale 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
2. Introduction - Company Overview Nature of the Scheme Perpetual, Rated, Listed, Closed-end Shariah Compliant Rental REIT • Dolmen Mall Clifton 547,924 sq.ft. Real Estate • The Harbour Front 256,724 sq.ft. Total 804,648 sq.ft. PKR 22,237 Million (at inception) Fund Size PKR 51,282 Million as at Jun
Slide 10: Operational and Financial Performance
3. Operational and Financial Performance Currently Operating with the finest brands and Companies in Pakistan Tenants include:
Slide 11: Operational and Financial Highlights
3. Operational and Financial Highlights 30 June 2020 30 June 2019 (Rupees in '000) % INCOME Rental income 2,813,561 3,344,499 (15.87) Marketing income 151,400 182,606 (17.09) 2,964,961 3,527,105 (15.94) Administrative and operating expenses (396,494) (513,267) (22.75) Net operating income 2,568,467
Slide 12: Response to the Outbreak of Covid-19
3. Operational and Financial Highlights Response to the Outbreak of Covid-19 • In compliance with the directives of the government, Dolmen Mall was closed from March 18, 2020 to May 19, 2020 except for essential services such as supermarkets, pharmacies, and banks. • The outbreak of Corona virus dam
Slide 13: Dividend Payout and Taxes Paid
3. Operational and Financial Highlights Dividend Payout (Year on Year) Cumulative Contribution to Government in terms of Federal and Provincial Taxes Dividend Payout Taxes Paid (PKR ' Million) (PKR ' Million) 3,500 3,500 3,000 3,000 3,101 2,935 2,500 2,668 2,779 2,500 2,557 2,633 2,000 2,313 2,000 2
Slide 14: Opportunities and Challenges to REITs
4. 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 15: Opportunities and Challenges to REITs
4. 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 16: Challenges to REITs in Pakistan
4. 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