Emirates Reit (ceic) Plc · NASDAQDUBAI:REIT
Emirates Reit (ceic) — Shareholder Meeting (2020)
33 slides from Emirates Reit (ceic)'s shareholder meeting presentation, Jul 1, 2020
Slide 1: Annual General Meeting
ANNUAL cL cemeRaL, MEETING 2 <a EQUITATIVA \ » MQ RAN
Slide 2: Market Overview
MARKET OVERVIEW
Slide 3: Economic Indicators
ECONOMIC INDICATORS DUBAI EMPLOYMENT YOY CHANGE OIL PRICE DECLINE Source: Knight Frank Managed by Equitativa 3
Slide 4: Real Estate Market Overview
REAL ESTATE MARKET OVERVIEW Q1 2020 ABU DHABI DUBAI Rental Rental Rents Rents Growth Growth Falling Falling Slowing Slowing Hotel Hotel Rental Rents Retail Rental Rents Growth Bottoming Growth Bottoming Accelerating Out Accelerating Out Retail Office Residential Office Residential Source: JLL Manage
Slide 5: UAE Real Estate Market 2019: Change in Office Rental Rates
UAE REAL ESTATE MARKET 2019 PERCENTAGE CHANGE IN OFFICE RENTAL RATES Q1 2020 Sources: Asteco Managed by Equitativa 5
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW
Slide 7: Portfolio Overview
PORTFOLIO OVERVIEW AS AT 31 MARCH 2020 PORTFOLIO VALUE USD 878m AED 3.2b NET ASSET VALUE USD 422m USD 1.41 per share Managed by Equitativa 7
Slide 8: Portfolio Overview
PORTFOLIO OVERVIEW * Annualized Rent Contributions as at 30 March 2020 (excluding provisions) Managed by Equitativa 8
Slide 9: Portfolio Overview and Lease Expiries
PORTFOLIO OVERVIEW 31 MAR 2020 31 MAR 2019 LEASE EXPIRIES Number of Properties 11 11 4% in 2020 Leasable Area in ft2 2.4m 2.4m 8% in 2021 7% in 2022 WAULT in Years 8.4 7.5 6% in 2023 5% in 2024 Total Occupancy 73% 76% 70% in 2025++ Total Occupancy 78% 82% (Excl. School in DIP) Managed by Equitativa
Slide 10: Financials
FINANCIALS
Slide 11: FY 2019 Income and Earnings
FY 2019 INCOME AND EARNINGS (USD M) Managed by Equitativa 11
Slide 12: Q1 2020 Income and Earnings
Q1 2020 INCOME AND EARNINGS (USD M) Managed by Equitativa 12
Slide 13: Balance Sheet Overview
BALANCE SHEET OVERVIEW Q1 2020 USD 1,018.1 USD 1,018.1 Right-of-use assets IN USD M 31 MAR 2020 31 MAR 2019 CHANGE 52.8 54.8 Lease Liability Trade & Other Investment Property 878.1 941.1 (6.7%) Receivables 39.7 37.4 Other Payables & 47.4 Derivative Liability Cash & Equivalents Total Assets* 1,018.1
Slide 14: Valuations: Cap Rates
VALUATIONS CAP RATES FY 2019 EMIRATES REIT PRIME DUBAI SECTOR PORTFOLIO TRENDS* Office 8 - 9.5% 7.5% Education 8.4 - 9.75% 8.5% Retail 8.0 - 8.1% 8.0% In 2019, the yields taken by the Independent Valuers haven't changed - except for DIP School for which the yield has increased to reflect the associa
Slide 15: Summary
SUMMARY Q1 2020 USD 878m 222,912 m2 PORTFOLIO VALUE NET LEASABLE AREA As of 31 Mar 2020 USD 422m 73% NET ASSET VALUE OCCUPANCY USD 1.41 per share 8.4 years NET ASSET VALUE WAULT(1) NAV per share is calculated by the REIT administrator. Growth rates are adjusted for dividends and annualized. For 2011
Slide 16: Portfolio Highlights
PORTFOLIO HIGHLIGHTS
Slide 17: COVID-19 Update
COVID-19 UPDATE Q1 2020 • All commercial buildings are currently open for business post lockdown • Immediate implementation of additional cleaning, sanitization and control measures • Implementation of social distancing measures at all properties • Proactively collaborating with tenants to manage re
Slide 18: Property Operations Highlights
PROPERTY OPERATIONS HIGHLIGHTS Q1 2020 LEASING ACTIVITY LOFT OFFICES • 25 new leases with c. 50,000 sqft of leasable area • Occupancy 51% (Loft 1: 74%, Loft 2: 66%) • 40 renewals with c. 120,000 sqft renewed • Exterior works and painting work in progress • 34 leases expired with 60,000 sqft of vacat
Slide 19: Index Mall
INDEX MALL Managed by Equitativa 19
Slide 20: European Business Centre Metro Station
EUROPEAN BUSINESS CENTRE METRO STATION Managed by Equitativa 20
Slide 21: Property Highlights
PROPERTY HIGHLIGHTS INCOME UNEXPIRED LEASE TERM As of 31 Mar 2020 As of 31 May 2020 Service Charges Rent Managed by Equitativa 21
Slide 22: Moving Forward
MOVING FORWARD
Slide 23: Share Dividends (Scrip Dividends / Bonus Shares)
SHARE DIVIDENDS (SCRIP DIVIDENDS / BONUS SHARES) In response to COVID-19 and to uncertain market conditions, globally many REITS reduced or suspended their dividends: • British Land - suspended dividend • LandSec - suspended dividend • Capital and Regional PLC - scrip dividend • 23 US REITs have cut
Slide 24: Irregular Trading Activities
IRREGULAR TRADING ACTIVITIES LEGAL FILING ANNOUNCEMENT As previously noted in the letter to shareholders of 10 May earlier this year, Emirates REIT found evidence of irregular trading activity, which was reported to the relevant regulatory bodies. Emirates REIT yesterday submitted an application in
Slide 25: Strategy
STRATEGY • Aggressive leasing • Continue improving efficiency • Renegotiation of debt pricing • Increase diversification • Address stock market issue Managed by Equitativa 25
Slide 26: Resolutions
RESOLUTIONS
Slide 27: AGM 2020 Ordinary Resolution 1
AGM 2020 ORDINARY RESOLUTION 1 To receive and approve the annual report and the audited accounts of the REIT for the year ended 31 December 2019 together with the director's report and auditor's report on those accounts. The REIT is required to present to the shareholders the audited accounts of the
Slide 28: AGM 2020 Ordinary Resolution 2
AGM 2020 ORDINARY RESOLUTION 2 In light of the uncertain impact of COVID-19 on the real estate sector, and in order to conserve liquidity of the REIT, to approve: 1. the declaration of a final dividend of USD 0.0145 per ordinary share, an aggregate of USD 4.34 million, for the financial year ending
Slide 29: AGM 2020 Ordinary Resolution 3
AGM 2020 ORDINARY RESOLUTION 3 To extend the appointment of Mr Abdullah Al Hashemi, Mr David Savy, and Mr Mohamed Sharaf existing members of the Investment Board, and to re-appoint Deloitte & Touche (M.E) as the auditor of the REIT to hold office, until the conclusion of the next AGM of the REIT As
Slide 30: AGM 2020 Ordinary Resolution 4
AGM 2020 ORDINARY RESOLUTION 4 To authorise the REIT Manager on behalf of the REIT to enter into Related Party Transactions for the acquisition or sale of Real Property in the United Arab Emirates pursuant to the DFSA CIR Rule 13.4.11A and 8.3.2 without obtaining specific approval from the sharehold
Slide 31: AGM 2020 Ordinary Resolution 5
AGM 2020 ORDINARY RESOLUTION 5 To authorize the REIT Manager to arrange the payment of interim dividends of the REIT to its shareholders, subject to the REIT having sufficient retained earnings to pay its debts as they become due immediately after the dividend is paid. The Board recommends that the
Slide 32: AGM 2020 Ordinary Resolution 6
AGM 2020 ORDINARY RESOLUTION 6 To authorize the REIT to make one or more market purchases of its ordinary shares, provided that: i. the number of ordinary shares which may be purchased in any given period and the price which may be paid for such ordinary shares shall be in accordance with the rules
Slide 33: Thank You
THAN R'YQU EQUITATIVA