Emirates REIT (CEIC) PLC · NASDAQDUBAI:REIT
Emirates REIT (CEIC) — Q3 2017 Earnings Presentation
20 slides from Emirates REIT (CEIC)'s earnings presentation, Nov 1, 2017
Slide 1: Q3 2017 earnings call
EMIRATES REIT Q3 2017 earnings call
Slide 2: Speakers
SPEAKERS Sylvain Vieujot Remi Ishak Magali Mouquet CEO Group CFO Group COO Managed by Equitativa 2
Slide 3: Key Messages
KEY MESSAGES FINANCIAL UPDATES Portfolio value crossed AED 3 billion mark (USD 845 million) NAV stands at USD 1.73 per share at period end Annualised rental income AED 221.3 million (USD 60 million) 32% YTD increase in net rental income to USD 33.3 million 58% YTD growth in FFO to USD 12.3 million O
Slide 4: Annualized Rent Per Property
ANNUALIZED RENT PER PROPERTY Managed by Equitativa 4
Slide 5: Financial Updates
FINANCIAL UPDATES
Slide 6: Strong Property Income Growth
STRONG PROPERTY INCOME GROWTH +21% PROPERTY INCOME (USD M) 43.9 15.6 4.6 14.4 14.4 36.3 13.9 1.7 12.7 1.4 1.3 1.5 4.0 11.9 11.7 1.3 1.3 1.3 39.3 13.0 12.9 13.9 32.4 12.6 10.4 10.6 11.4 YTD 2016 YTD 2017 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Service fee & other income Service fee &
Slide 7: Strong Rental Income Conversion to FFO
STRONG RENTAL INCOME CONVERSION TO FFO FFO MOVEMENT (USD M) +58% 10% 21% 0.4 37% -1.1 -4% -2.4 7.6 12.3 7.8 YTD 2016 Property income Property operating expenses Fund expenses Finance cost, net YTD 2017 Managed by Equitativa 7
Slide 8: Strong FFO Growth
STRONG FFO GROWTH +58% FFO (USD M) 12.3 4.2 4.1 4.0 3.6 7.8 2.8 2.8 2.2 YTD 2016 YTD 2017 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Managed by Equitativa 8
Slide 9: Balance Sheet Overview
BALANCE SHEET OVERVIEW USD 882.5 USD 882.5 19.6** 25.6** 18.3** IN USD M 31 SEP 17 31 DEC 16 CHANGE INVESTMENT PROPERTY 844.6 752.7 +12.2% 337.4 Debt TOTAL ASSETS 882.5 832.5 +6.0% EQUITY 519.4 493.4 +5.3% ISLAMIC FINANCING 337.4 313.6 +7.6% 844.6 Investment NAV PER SHARE (USD) 1.73 1.65 +5.3% Prope
Slide 10: Valuation Movement
VALUATION MOVEMENT YEAR ON YEAR Managed by Equitativa 10
Slide 11: Portfolio Value Summary
SUMMARY USD 845m 204,235 m2 Portfolio Value Net Leasable Area USD 519.4m 84% Net Asset Value Occupancy Portfolio Value USD 1.73 per share 7.7 years Net Asset Value WAULT Weight average unexpired lease term 10 Properties 355 tenants 6 Office-retail Mix 1 Retail 3 Education complexes As of 30 Sept 201
Slide 12: Operational Updates
OPERATIONAL UPDATES
Slide 13: Operational Developments
OPERATIONAL DEVELOPMENTS BRITISH COLUMBIA CANADIAN SCHOOL EUROPEAN BUSINESS CENTRE TRIDENT MALL INDEX MALL BCCS started Acquired in August Occupancy increased Additional 3,410 m2 of office operations Tenant mix review supermarket fit out space under fit-out Building management upgrade underway Index
Slide 14: British Columbia Canadian School
BRITISH COLUMBIA CANADIAN SCHOOL Managed by Equitativa 14
Slide 15: Last Acquisition: European Business Center Dubai
LAST ACQUISITION: EUROPEAN BUSINESS CENTER DUBAI Managed by Equitativa 15
Slide 16: European Business Center Dubai
EUROPEAN BUSINESS CENTER DUBAI OWNERSHIP TITLE Leasehold ASSET STRENGTHS ACQUISITION DATE 23 Aug 2017 Purchase price: AED 130 million (USD 35 million) Passing Rent: AED 19.4 million COMPLETION DATE 2008 > 10% Projected un-levered IRR NET LEASABLE AREA 22,454 m2 Strategic location close to Jebel Ali
Slide 17: Index Mall
INDEX MALL Managed by Equitativa 17
Slide 18: Gate Avenue Announced for H1 2018
GATE AVENUE ANNOUNCED FOR H1 2018 Managed by Equitativa 18
Slide 19: Planned Sukuk
PLANNED SUKUK REIT GROWTH CYCLE WHY NOW Mature portfolio Favourable market conditions GOALS Refinance current debt (at least USD 350 million) Remove variable profit rate risk NEXT STEP EGM on 23 November 2017 at 2pm, in Index Tower Managed by Equitativa 19
Slide 20: Questions & Answers
QUESTIONS & ANSWERS