Emirates REIT (CEIC) PLC · NASDAQDUBAI:REIT
Emirates REIT (CEIC) — H1 2022 Earnings Presentation
21 slides from Emirates REIT (CEIC)'s earnings presentation, August 2022
Slide 1: 1H 2022 Results Presentation
1H 2022 RESULTS PRESENTATION AUGUST 2022
Slide 2: Disclaimer
INTRODUCTION DISCLAIMER PAGE 2 This presentation has been prepared by Equitativa Such statements reflect current views on, among Neither Equitativa nor Emirates REIT intend or among other things, general business and (Dubai) Limited (“Equitativa” or the “Manager”), other things, markets, activities
Slide 3: Key Highlights
KEY HIGHLIGHTS INTRODUCTION PAGE 3 SUSTAINED IMPROVEMENT IN OPERATIONS AND NET ASSET VALUE Y-O-Y OCCUPANCY INVESTMENT PROPERTY NET ASSET VALUE 81.9% USD 758.6m USD 352.6m +11.9 p.p. +4.7% +27.3% NET PROPERTY INCOME (1) NET PROFIT EARNINGS PER SHARE USD 27.0m USD 61.5m USD 0.206 -10.9% +20.9% +21.2%
Slide 4: Market Overview
MARKET OVERVIEW
Slide 5: Macroeconomic Overview
MARKET OVERVIEW MACROECONOMIC OVERVIEW PAGE 5 • The UAE’s Purchasing Managers Index registered a slight drop to 54.8 in June from 55.6 a month earlier while Dubai Index reached 56.1 in June, the highest reading over • As per the UAE Central Bank, the country’s Gross Domestic Product (GDP) grew 3.8%
Slide 6: Dubai Office Market Update
MARKET OVERVIEW DUBAI OFFICE MARKET UPDATE PAGE 6 CHANGE IN OFFICE RENTS SINCE THE START OF THE PANDEMIC (1Q 2020 V 1Q 2022) • There were no new office completions in Dubai in the second quarter of this year and the total stock remains stable at 9.1 million sq.m. JLL market research forecasts 53,000
Slide 7: Dubai Retail Market Update
MARKET OVERVIEW DUBAI RETAIL MARKET UPDATE PAGE 7 • There were no new retail completions in Dubai in 2Q 2022 and the total stock remains unchanged at 4.6 million sq.m. DUBAI RETAIL MARKET: TOTAL STOCK, EXPECTED DELIVERIES & RENTAL RATES • In 2H 2022, approximately 333,000 sq.m. of retail space is sc
Slide 8: Operational Highlights
OPERATIONAL HIGHLIGHTS
Slide 9: Operational Highlights
OPERATIONAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS PAGE 9 • Occupancy across the portfolio increased q-o-q by 0.5 p.p. during 2Q 2022 • Index Tower experienced a strong occupancy increase of 8.2 p.p .during 2Q 2022 to 81.9% (2.4 p.p. on a like-for-like basis). to 79.7% with a blended rental rate increase
Slide 10: Office Portfolio
OFFICE PORTFOLIO OPERATIONAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS PAGE 10 PAGE 10 INDEX TOWER • Occupancy: 86%, a strong growth in occupancy of 6.5 p.p. during 2Q 2022. • Demand driven by larger premium fully fitted and furnished offices. OFFICE PARK • Occupancy: 79.8%, increased by 6.9 p.p. during 2Q
Slide 11: Office Portfolio
OFFICE PORTFOLIO OPERATIONAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS PAGE 11 PAGE 11 EUROPEAN BUSINESS CENTRE • Occupancy: 68.7%, decreased by 0.5 p.p. during 2Q 2022. • Premium building with high visibility and direct access to the metro station. • Access, landscape and waterproofing works have commenced
Slide 12: Retail Portfolio
RETAIL PORTFOLIO OPERATIONAL HIGHLIGHTS PAGE 12 INDEX MALL • Occupancy: 46%, a strong increase of 20.4 p.p. during 2Q 2022 with the successful lease of a large medical fitness facility and the extension of the gym. • Retail remains challenging but showing signs of recovery. • Increased footfall at I
Slide 13: Education Portfolio
EDUCATION PORTFOLIO OPERATIONAL HIGHLIGHTS PAGE 13 GEMS WORLD ACADEMY • Continued property improvements by GEMS, maintaining state of the art facilities for one of their flagship schools. LYCEE FRANCAIS JEAN MERMOZ • Ongoing construction works for phase three during 2Q 2022. • Strong enrollment of n
Slide 14: Y-o-Y Occupancy Change
Y-O-Y OCCUPANCY CHANGE OPERATIONAL HIGHLIGHTS PAGE 14 2Q 2021 +15.0 p.p. 2Q 2022 66.9%(1) 81.9% (1) On a like-for-like basis, excluding Jebel Ali School
Slide 15: Financial Highlights
TITLE01 FINANCIAL TITLE02 HIGHLIGHTS 15
Slide 16: Consolidated Statement of Comprehensive Income
CONSOLIDATED STATEMENT FINANCIAL HIGHLIGHTS PAGE 16 OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED IN USD ‘000 JUN 30, 2022 JUN 30, 2021 CHANGE Y-O-Y • 1H 2022 Rental, Fee & Other Income amounted to USD 34.4m compared to USD 30.3m in 1H 2021 (up 13.7% y-o-y). RENTAL, FEE & OTHER INCOME 34,420 30,26
Slide 17: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT FINANCIAL HIGHLIGHTS PAGE 17 OF FINANCIAL POSITION FOR THE HALF YEAR ENDED IN USD ‘000 JUN 30, 2022 JUN 30, 2021 CHANGE Y-O-Y • Driven by continued improved valuations, the INVESTMENT PROPERTY 758,589 724,587 +4.7% Investment Property recorded a USD 34.0m increase (+4.7%) y-o-
Slide 18: Consolidated Statement of Comprehensive Income (Quarter)
CONSOLIDATED STATEMENT FINANCIAL HIGHLIGHTS PAGE 18 OF COMPREHENSIVE INCOME FOR THE QUARTER ENDED IN USD ‘000 JUN 30, 2022 MAR 31, 2022 CHANGE Q-O-Q RENTAL, FEE & OTHER INCOME 17,243 17,177 +0.4% • Rental, fee and other income for 2Q 2022 grew by 0.4% (LOSS)/GAIN ON DISPOSAL (1,455) - - and amounted
Slide 19: Net Property Income
NET PROPERTY INCOME FINANCIAL HIGHLIGHTS PAGE 19 USD M -10.9% +19.6% 40.0 30.0 (1.5) 6.5 One-off gain resulting fl One-off loss resulting 20.0 30.3 29.9 6.5 28.4 26.9 (1.5) 23.8 12.8 10.0 13.3 13.5 14.1 12.9 11.4 11.7 12.0 12.3 14.3 0.0 1H 2021 1H 2022 1H 2021 1H 2022 3Q 2020 4Q 2020 1Q 2021 2Q 2021
Slide 20: Operating Profit
OPERATING PROFIT FINANCIAL HIGHLIGHTS PAGE 20 -38.8% +21.6% USD M 30.0 0.6 6.4 One-off gain resulting Impact of the voluntary 0.6 22.5 6.5 6.4 (1.5) One-off gain resulting 15.0 29.7 fl One-off loss resulting from 6.5 18.2 19.7 18.2 0.6 0.6 0.6 (1.5) 16.2 0.6 7.5 9.5 9.8 7.6 7.7 8.0 9.9 8.3 6.3 6.7 0
Slide 21: Thank You
Jee Emirates REIT THANK YOU EQUITATIVA,