Emirates Reit (ceic) Plc · NASDAQDUBAI:REIT
Emirates Reit (ceic) — Shareholder Meeting (November 2017)
20 slides from Emirates Reit (ceic)'s shareholder meeting presentation, November 2017
Slide 1: Extraordinary General Meeting November 2017
EXTRAORDINARY GENERAL MEETING NOVEMBER 2017
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Equitativa (Dubai) Limited, as the manager of Emirates REIT (CEIC) Limited (“Emirates REIT”) members of the Equitativa group of companies (referred to herein individually or collectively as the “Equitativa Group”). This presentation is provided for i
Slide 3: Table of Contents
TABLE OF CONTENTS 01. Emirates Reit Overview 02. Key Credit Strengths 03. Transaction Overview 04. Resolutions Presented To Shareholders 05. Appendix Managed by Equitativa 3
Slide 4: The World's Largest Shari'a Compliant REIT
THE WORLD’S LARGEST SHARI’A COMPLIANT REIT AS AT 30 SEPT 2017 10 PROPERTIES PORTFOLIO VALUE USD 845m 3 Education Complex AED 3.1b NET LEASABLE AREA 204,000m2 2.2m sqft 6 Commercial-retail Mix COMMERCIAL 60.1% EDUCATION 25.8% INCOME RETAIL PER 1 Retail 10.8% UNIT TYPE OTHERS 3.3% Managed by Equitativ
Slide 5: Strong, Stable Tenant Base
STRONG, STABLE TENANT BASE 85% AVERAGE OCCUPANCY LEASE MATURITY PROFILE OCCUPANCY OCCUPANCY HISTORY 85% Managed by Equitativa 5
Slide 6: Annualized Rent Contribution
ANNUALIZED RENT CONTRIBUTION Managed by Equitativa 6
Slide 7: Steady Growth
STEADY GROWTH PORTFOLIO VALUE USD 845m AED 3.1b NET ASSET VALUE USD 519.4m AED 1.9b NET ASSET VALUE PER SHARE USD 1.733 After dividend distribution of USD 0.04 per share Dividends FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 per share USD0.0025 USD0.05 USD0.05 USD0.08 USD0.08 USD0.08 As at 30 Sept 2017
Slide 8: REIT's Growth Cycle
REITS GROWTH CYCLE APRIL 2014 IPO : raised USD 193 m JUNE 2014 - AUGUST 2017 Q4 2017 / Q1 2018 Several facilities secured and drawn Planned Sukuk down as needed Managed by Equitativa 8
Slide 9: Diversified Sources of Funding
DIVERSIFIED SOURCES OF FUNDING 2016 Managed by Equitativa 9
Slide 10: Why Do We Want To Do This?
WHY DO WE WANT TO DO THIS? IMPROVED FINANCIAL POSITION Proposed Sukuk will help Emirates REIT lengthen the repayment profile of its debt Achieve a lower cost of funds in light of strong market dynamics Improve liquidity profile of Emirates REIT given bullet repayment schedule Remove variable interes
Slide 11: MAF 2024 4.75% Sukuk - Yield
MAF 2024 4.75% SUKUK - YIELD Managed by Equitativa 11
Slide 12: Key Credit Strengths
KEY CREDIT STRENGTHS ASSETS SHAREHOLDERS High quality Assets Strong and reputable shareholders Prime locations Long term commitment of main shareholders Diversified Governments and government-owned : 38% Over 90% institutional shareholders CASH FLOW TENANTS Stable long term rental contracts Diversif
Slide 13: Robust Capital Structure
ROBUST CAPITAL STRUCTURE CAPITAL STRUCTURE LTV: COMPLIANT WITH DFSA REGULATIONS AS AT 31 AS AT 31 AS AT FYE 31 DEC (USD M) DECEMBER 2015 DECEMBER 2016 SEPTEMBER 2017 TOTAL BORROWINGS 257 315 339 WEIGHTED AVERAGE 3 month EIBOR 3 month EIBOR 3 month EIBOR COST OF FINANCE * + 2.7% + 2.6% + 2.6% FINANCE
Slide 14: Transaction Overview
TRANSACTION OVERVIEW
Slide 15: Key Terms and Conditions of the Planned Issuance
KEY TERMS AND CONDITIONS OF THE PLANNED ISSUANCE ISSUER Special Purpose Vehicle (to be incorporated in the Cayman Islands); Proposed name: “Emirates REIT Sukuk Limited” OBLIGOR EMIRATES REIT (CEIC) LIMITED (“Emirates REIT”) OBLIGOR RATING To Be Announced ISSUE RATING To Be Announced STATUS Senior an
Slide 16: Resolutions Presented to Shareholders
RESOLUTIONS PRESENTED TO SHAREHOLDERS
Slide 17: EGM Resolutions Explanations: Resolution 1 Sukuk
EGM RESOLUTIONS EXPLANATIONS RESOLUTION 1: SUKUK Approval of the technicality of the transaction (appointing banks, lawyers, structure, …). Cayman structure is used as common practice, cheaper and quicker than alternatives. Listing on Irish Stock Exchange required by the banks to successfully market
Slide 18: EGM Resolutions Explanations: Related Party Transactions
EGM RESOLUTIONS EXPLANATIONS RESOLUTION 2: RELATED PARTY TRANSACTIONS Several of Islamic Banks are amongst our shareholders, including Dubai Islamic Bank which is Emirates REIT’s largest shareholder (owning 16%) and one of the biggest player on the Sukuk Issuance market. Other banks interested in ma
Slide 19: EGM Resolutions Explanations: Financing Arrangement
EGM RESOLUTIONS EXPLANATIONS RESOLUTION 3: FINANCING ARRANGEMENT General practice is to accommodate commodity Murabaha structure for a Sukuk. However a REIT can only own non real estate assets with the approval from shareholders. SPECIAL RESOLUTION To allow the REIT to purchase commodities for immed
Slide 20: Thank You
THANK YOU
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