Emirates Reit (ceic) Plc · NASDAQDUBAI:REIT
Emirates Reit (ceic) — Debt Investor Presentation (December 2024)
34 slides from Emirates Reit (ceic)'s debt investor presentation, December 2024
Slide 1: Emirates REIT – Investor Update
Emirates REIT – Investor Update • DECEMBER 2024 RESTRICTED
Slide 2: Agenda
Agenda 1 Transaction Overview 2 Company Overview 3 Market Overview 4 Performance 5 Financial Projections 6 Corporate Governance and Risk Management RESTRICTED 2
Slide 3: Transaction Overview | Sources & Uses, Capital Structure
Transaction Overview l Sources & Uses, Capital Structure New Senior Secured Sukuk financing reflects company’s conservative capital structure, BB+ bond credit rating and the prime nature of the assets and collateral (e.g.: Index Tower DIFC) Total Sources $m Total Uses $m Sources New Secured Bond Suk
Slide 4: Transaction Overview | Key Terms
Transaction Overview l Key Terms Senior Secured Bond Sukuk Issuer Emirates REIT (CEIC) PLC Use of proceeds Refinance existing sukuk Ranking 1L senior secured bond sukuk Bond Rating BB+ ISIN / Common Code XS2952510340 / 295251034 Format Sukuk Al-Wakala Clearing Euroclear and Clearstream, Luxembourg M
Slide 5: Agenda
Agenda 1 Transaction Overview 2 Company Overview 3 Market Overview 4 Performance 5 Financial Projections 6 Corporate Governance and Risk Management RESTRICTED 5
Slide 6: Company Overview | REIT Overview
Company Overview l REIT Overview Established 14 years ago, Emirates REIT has a unique exposure to the Dubai property market with a primary objective to invest in income- producing assets with attractive fundamentals Business Overview Portfolio Index Mall(3) Index Tower Loft Offices Emirates REIT i
Slide 7: Company Overview | Business Overview and Strategy
Company Overview l Business Overview and Strategy Description The REIT only focuses on income-producing assets with attractive investment fundamentals. The REIT uses an integrated software platform which allows the Management to have a great degree of visibility on historical, existing, and proj
Slide 8: Company Overview | Real Estate Portfolio Overview
Company Overview l Real Estate Portfolio Overview Index Tower GEMS World Academy Indigo 7 DIFC Al Barsha South Sheikh Zayed Road Acquisition Year: 2013-2014(1) Acquisition Year: 2013 Acquisition Year: 2011 Ownership: Freehold Ownership: Leasehold Ownership: Leasehold NL Office Area: 352,130 sq. ft N
Slide 9: Company Overview | Asset Location Map
Company Overview l Asset Location Map Commercial Retail Education 1. Index Tower 7. Index Mall 9. Lycée Français Jean Mermoz 2. Office Park(1) 8. Trident Grand Mall(2) 10. Gems World Academy 3. Loft Offices 11. Durham School Dubai 4. Building 24 5. Indigo 7 6. European Business Centre Al Maktoum I
Slide 10: Company Overview | Financial Policies and Risk Management
Company Overview l Financial Policies and Risk Management Leverage We target consistently conservative LTV <=30% through-the-cycle M&A No current plans for further sales or acquisitions Risk management and liquidity New Sukuk is fixed rate i.e. no profit rate risk on ~80% of financing FX ris
Slide 11: Company Overview | Key Credit Highlights
Company Overview l Key Credit Highlights Established 14 years ago, Emirates REIT has a unique exposure to the Dubai property market with a primary objective to invest in income- producing assets with attractive fundamentals One of the world's largest Shari’a compliant REIT with high-quality assets l
Slide 12: Agenda
Agenda 1 Transaction Overview 2 Company Overview 3 Market Overview 4 Performance 5 Financial Projections 6 Corporate Governance and Risk Management RESTRICTED 12
Slide 13: Market Update | UAE Real Estate Overview
Market Update l UAE Real Estate Overview The UAE real estate market is experiencing positive momentum, with favourable outlooks from real estate professionals, brokers, experts, and banks 53.8 2.2pp 11.3% YoY YTD to Aug-24 Increase in prime UAE PMI reading in increase in hotel office rental rates in
Slide 14: Market Update | Dubai Office Market
Market Update l Dubai Office Market Dubai Office Market - Outlook “The supply pipeline is fairly small, indicating upwards pressure on office rental rates across the market will remain in place over the short term at least. In 2024 and 2025 we see the average rental rate for Dubai offices growing by
Slide 15: Agenda
Agenda 1 Transaction Overview 2 Company Overview 3 Market Overview 4 Performance 5 Financial Projections 6 Corporate Governance and Risk Management RESTRICTED 15
Slide 16: Performance | Significant Ongoing Upward Repricing
Performance l Significant Ongoing Upward Repricing Current rates (especially Index Tower) are below market rates, signaling the potential for substantially more income upon renewals / lease expiry Index Tower Commercial Space 900 Passing Rate Market Rate 200 Passing Rate Market Rate 800 2% 180 % % +
Slide 17: Performance | Cash Rent Rates
Performance l Cash Rent Rates Robust long-term demand in Dubai’s commercial market has led to a structural undersupply of assets in prime locations. This, coupled with strong and proactive management of the portfolio, has been driving continuous and material improvement in cash rents. Total Cash Ren
Slide 18: Performance | Net Property Income
Performance l Net Property Income Despite the sale of Trident Net Property Income (in $’m) Grand Mall & Office Park in July and Oct 2024 Property FY2018A FY2019A FY2020A FY2021A FY2022A FY2023A H12024A respectively, Net Index Tower 6.8 11.0 10.5 11.0 16.3 22.0 13.0 Property Income is expected to inc
Slide 19: Performance | Valuation
Performance l Valuation Valuation (in $’m) After being impacted by Covid-19, valuations have Property FY2018A FY2019A FY2020A FY2021A FY2022A FY2023A H1-24A started to register improvement across the Index Tower 378.0 374.3 265.8 292.7 375.8 494.7 542.4 different segments, which European Business re
Slide 20: Performance | Occupancy
Performance l Occupancy Strength Across the Board - Action Taken to Maximize Occupancy Levels Across the Portfolio Occupancy Rates (%) Post-pandemic, occupancy levels have been consistently improving in Property FY2018A FY2019A FY2020A FY2021A FY2022A FY2023A H1-24A line with the REIT strategy. Inde
Slide 21: Performance | Historical Financial Performance
Performance l Historical Financial Performance EBITDA witnessed Y-o-Y up-tick of 19% Overview of Key Operational Financials ($m) Comments FY18A FY19A FY20A FY21A FY22A FY23A 1H24A 1 Company’s operational performance 1 Rental Income 61.3 64.5 58.2 54.9 60.2 64.2 34.9 recovered post Covid-19 as Renta
Slide 22: Performance | Rent Roll – Top Tenants
Performance l Rent Roll – Top Tenants Robust Tenant Diversification Emirates REIT has strong tenant diversification and long term contracts with its largest tenants. The REIT’s strategy has been to extent office lease terms. The latest contract renewals have been for longer terms and higher rents. #
Slide 23: Agenda
Agenda 1 Transaction Overview 2 Company Overview 3 Market Overview 4 Performance 5 Financial Projections 6 Corporate Governance and Risk Management RESTRICTED 23
Slide 24: Financial Projections | FY24 – FY26
Financial Projections l FY24 – FY26 Based on a prudent assessment of the current market and company backdrop, profitability and cash flow generation is envisaged to remain very robust. Overview of Key Operational Financials ($m) Comments Double-digit rental growth y-o-y as of H1 FY22A FY23A FY24F
Slide 25: Agenda
Agenda 1 Transaction Overview 2 Company Overview 3 Market Overview 4 Performance 5 Financial Projections 6 Appendix: Corporate Governance and Risk Management RESTRICTED 25
Slide 26: Corporate Governance
Corporate Governance and Risk Management l Corporate Governance Emirates REIT’s corporate governance framework is composed of four boards and a management team. Each member has extensive experience in the region and adds a lot of value and knowledge to the REIT. The Management Board of the REIT Mana
Slide 27: Management Board
Corporate Governance and Risk Management l Management Board The Management Board of the REIT Manager is responsible for guiding the REIT in its day to day operations and expanding and optimizing the REIT’s Portfolio. It is comprised of Mr. Abdulla Al Hamli (Chairman), Mr. Sylvain Vieujot (Executive
Slide 28: Management Team
Corporate Governance and Risk Management l Management Team The Management Team are responsible for guiding the REIT in their day to day operations and expanding and optimizing the Emirates REIT property portfolio. Mr Thierry Delvaux, CEO of Equitativa (Dubai) Limited, is a seasoned real estate execu
Slide 29: Investment Board
Corporate Governance and Risk Management l Investment Board The Investment Board is responsible for overseeing the implementation of the REIT’s investment strategy, ensuring its adequacy and appropriateness. Furthermore, the Investment Board reviews and consents to all acquisitions and disposals. It
Slide 30: Oversight Board (1/2)
Corporate Governance and Risk Management l Oversight Board (1/2) The Oversight Board is responsible for reviewing and advising the Management Board on Equitativa’s internal systems and controls, fund properties’ safekeeping, risk management, valuation disclosure processes and compliance with the Law
Slide 31: Oversight Board (2/2)
Corporate Governance and Risk Management l Oversight Board (2/2) The Oversight Board is responsible for reviewing and advising the Management Board on Equitativa’s internal systems and controls, fund properties’ safekeeping, risk management, valuation disclosure processes and compliance with the Law
Slide 32: Sharia Supervisory Board
Corporate Governance and Risk Management lSharia Supervisory Board The Shari’a Supervisory Board ensures compliance by the REIT with Shari’a principles and, where possible, advises, guides and provides assistance in the development and structuring of Shari’a compliant transactions as well as develop
Slide 33: Risk Management Framework
Corporate Governance and Risk Management l Risk Management Framework Comprehensive risk management framework to identify, assess, and mitigate potential risks is implemented. This framework includes regular risk assessments, adherence to global standards, and proactive mitigation strategies. The ris
Slide 34: Disclaimer
Disclaimer This presentation has been prepared by regulatory obligations, neither Equitativa nor Information contained in this presentation Equitativa (Dubai) Limited (“Equitativa” or the Emirates REIT intend or undertake to update or relating to the REIT or its share price, or “Manager”), as the ma
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