Alandalus Property Co. · TADAWUL:4320
Alandalus Property — Q3 2019 Earnings Presentation
46 slides from Alandalus Property's earnings presentation, Nov 6, 2019
Slide 1: Investor Presentation Q3 2019
Alandalus Property Q3 2019 Investor Presentation Q3 2019 1
Slide 2: Disclaimer
Disclaimer Alandalus Property Q3 2019 The information contained in this presentation is subject to change without further notice, its accuracy is not guaranteed, and it may not contain all material information concerning the company. Neither we nor our advisors make any representation regarding, and
Slide 3: Contents
Contents Alandalus Property Q3 2019 Overview 4 Sectors 16 Retail 17 Hospitality 29 Offices 31 Property Management 33 Healthcare 35 Investments 37 Financial Performance 41 3
Slide 4: Overview
Overview Alandalus Property Q3 2019 4
Slide 5: Alandalus Property is a pioneering Tadawul-listed real estate company
Change picture Alandalus Property Q3 2019 Alandalus Property is a pioneering Tadawul-listed real estate company involved in the investment, development and operation of income- generating properties across the Kingdom of Saudi Arabia
Slide 6: Q3 2019 Performance at a Glance
Q3 2019 Performance at a Glance Alandalus Property Q3 2019 >23.5million >97% Total Mall Footfall Avg Occupancy Rate of Mall Portfolio 64% 125million Operating Profit Margin Revenue (SAR) 57% 81% Gross Profit Margin EBITDA Margin 6
Slide 7: Mission and Vision
Mission To develop and operate unique and compelling destinations differentiated by engaging guests, customers and communities through experiences that foster loyalty, frequency of visits and lifetime value which ultimately drive and sustain unparalleled growth Vision To become the most admired and
Slide 8: Commercial Sectors
Commercial Sectors Alandalus Property Q3 2019 RETAIL HOSPITALITY Offices PROPERTY MANAGEMENT HEALTHCARE Regional Community Malls malls West Jeddah Salama Hospital Tower Under development 8
Slide 9: Strategic Objectives
Strategic Objectives Alandalus Property Q3 2019 Each business unit will have a common set of new strategic objectives that will drive operations and functional focus to deliver on strategy Stakeholder Operational Project Strategic Investments Engagement Performance Acquisition & Partnerships Collabo
Slide 10: Our Six Pillar Strategy to Enhance Value & Generate Growth
Alandalus Property Our Six Pillar Strategy to Enhance Value & Generate Growth Q3 2019 Pillars Retail Food & Interactive Neighboring Entertainment Services offerings Beverage Engagement Developments • Partner with key • Distinctive with • Unique, • Leverage • Physical and • Locate new retail houses m
Slide 11: Commercial Principles
Commercial Principles Alandalus Property Q3 2019 Assets should always be Retail and hospitality properties operative, never idle developed as standalone or mixed-use; healthcare properties developed only as mixed-use A healthy balance sheet APC not vertically integrated with liquid assets and low wi
Slide 12: Our History
Our History Alandalus Property Q3 2019 Diversifying the Business & Implementing Corporate Repositioning to Building Scale Governance Enhance Value 2006 2007 - 2012 2013 - 2017 2018 - 2019 2006: 2007: 2013: 2018: • Established • Increased share capital by SAR 104 million to • Signed with IHG to manag
Slide 13: Diversified Property Portfolio in Saudi Arabia
Diversified Property Portfolio in Saudi Arabia Alandalus Property Q3 2019 Jeddah Al Riyadh Al Andalus Mall Al-Marwah Center Hayat Mall Staybridge Suites Salama Office Tower Alsahafa Center Al Riyadh Dammam Jeddah West Jeddah Hospital Yarmouk Center Dammam Al Jawhara Mall Dareen Mall Tilal Center 13
Slide 14: Opportunities from KSA Supply/Demand Imbalance
Opportunities from KSA Supply/Demand Imbalance Alandalus Property Q3 2019 Supply Demand ▪ Low penetration of quality mixed-use ▪ Macroeconomic growth and supportive demographics of developments in high traffic locations KSA ‐ Mismatch of catchment area ‐ GCC’s largest economy with 2019 IMF growth fo
Slide 15: Investment Highlights
Investment Highlights Alandalus Property Q3 2019 Robust, yielding Multi-asset Growth-oriented, risk- portfolio diversification balanced ▪ Steady, consistent financial ▪ Geography – across Jeddah, Riyadh ▪ Well positioned for potentially high performance and Dammam yielding projects on the horizon ▪
Slide 16: Segments
Segments Alandalus Property Q3 2019 16
Slide 17: Retail
Alandalus Property Q3 2019 Retail Alandalus Property is configuring its shopping malls towards being preferred third- place destinations, after home and work. Customer loyalty, visit frequency and lifetime value are all being fostered through effective consumer engagement. 17
Slide 18: Retail Market Outlook
Retail Market Outlook Alandalus Property Q3 2019 KSA retail sector is GCC’s largest, Domestic economic reforms such as valued at $106 billion reaching a subsidy cuts, VAT implementation population of 33 million, forecasted to and Saudization have increased utility grow 12.3% by 2023 costs, squeezed
Slide 19: APC has a Strong, Diversified Mall Portfolio
APC has a Strong, Diversified Mall Portfolio Alandalus Property Q3 2019 TOTAL FOOTFALL TYPE # OF MALLS GLA (9months 2019) Super Regional 2 184k 19.5million Malls sqm Regional Malls 1 47k 4.0million sqm Community Malls 4 27k N/A sqm 19
Slide 20: Tenant Relationships
Tenant Relationships Alandalus Property Q3 2019 Alandalus maintains strong relationships with all major retailers enabling it to optimize tenant mixes at its retail properties resulting in better served catchment areas Alandalus Mall Hayat Mall Dareen Mall Revenue by client Revenue by client Revenue
Slide 21: Alandalus Mall Performance
Alandalus Mall Alandalus Property Q3 2019 Jeddah 13.5m Footfall FY 2018 Performance Super Regional Mall 10.9m Footfall Q3 2019 Profile 148,481 sqm total area 95% Occupancy z 89,972 sqm GLA 456 Shops AlAhli REIT Fund I (68.73% APC) 428 Leaseholders SAR 129.2m annual leases Achievements Select Tenant
Slide 22: Dareen Mall Performance
Dareen Mall Alandalus Property Q3 2019 Dammam 5.5 mn Footfall FY 2018 Performance Regional Mall 4.0 mn Footfall Q3 2019 Profile 98% Occupancy rate z 99,960 sqm total area 183 Shops 39,866 sqm GLA 160 Leaseholders Alaswaq Almutawarah SAR 47.8m annual leases (50% APC) Achievements Select Tenant Mix La
Slide 23: Hayat Mall Performance
Hayat Mall Alandalus Property Q3 2019 Riyadh 10 mn Footfall FY 2018 Performance Super Regional Mall 8.6 mn Footfall Q3 2019 Profile 226,108 sqm total area 99% Occupancy rate z 88,276 sqm GLA 546 Shops Alhayat Property (25% APC) 535 Leaseholders SAR 144.1m annual leases Achievements Select Tenant Mix
Slide 24: Al-Marwah Center Performance
Al-Marwah Center Alandalus Property Q3 2019 Commenced operations 28th March 2019 Jeddah 81% Occupancy Performance Community Mall 61 Shops Profile 30 Leaseholders 17,030 sqm total area SAR 8.3m Annual leases 8,015 sqm GLA Leased Select Tenant Mix 24
Slide 25: Al Sahafa Center Performance
Al Sahafa Center Alandalus Property Q3 2019 Riyadh 94% Occupancy Performance Community Mall 28 Shops Profile z 12,367 sqm total area 15 Leaseholders 6,582 sqm GLA SAR 5.3m annual leases Leased Select Tenant Mix 25
Slide 26: Yarmouk Center Performance
Yarmouk Center Alandalus Property Q3 2019 Riyadh 87% Occupancy Performance Community Mall 27 Shops Profile z 10,804 sqm total area 17 Leaseholders 4,767 sqm GLA SAR 4.4m annual leases Leased Select Tenant Mix 26
Slide 27: Tilal Center Performance
Tilal Center Alandalus Property Q3 2019 Riyadh 100% Occupancy Performance Community Mall 20 Shops Profile z 4,767 sqm total area 15 Leaseholders 5,072 sqm GLA SAR 4.5m annual leases Leased Select Tenant Mix 27
Slide 28: Al Jawhara Mall - Under development
Under development Al Jawhara Mall Alandalus Property Q3 2019 Profile Location: ▪ Jeddah Type: ▪ Super Regional Mall Area: ▪ 124,880 sqm Ownership: ▪ Al-Jawhara Al-Kubra (25% APC) Total project cost: ▪ SAR 873 million Expected Opening: ▪ Q1 2022 Rationale Prime location Updates near Al-Jawhara Stadiu
Slide 29: Hospitality
Alandalus Property Q3 2019 Hospitality Alandalus Property partners with global hospitality brands to develop quality hotels that aim to better serve catchment areas, diversify enterprise risk and maximize value creation 29
Slide 30: Staybridge Suites
Staybridge Suites Alandalus Property Q3 2019 Profile Market Outlook Location: Jeddah ▪ Saudi Arabia’s hotel sector is expected to grow in 2019, fueled Area: 28,255 sqm by increasing demand from Ownership: Al Ahli REIT Fund I religious, business and leisure visitors and the ongoing (68.73% APC) diver
Slide 31: Offices
Alandalus In Q3 2019, Alandalus Property witnessed Property Q3 2019 Offices significant growth in its offices sector, driven by the acquisition of Salama Tower. 31
Slide 32: Salama Tower
Salama Tower Alandalus Property Q3 2019 Profile Location: ▪ Jeddah Purchase Value ▪ SAR 255 million Annual Rental Value: ▪ SAR 23.1 Rental period ▪ 5 years Built Up Area: ▪ 58,919.3 sqm Net Leasable Area ▪ 31,420 sqm Land size ▪ 7,682 sqm Description Salama Tower is located in a prime location in Al
Slide 33: Property Management
Alandalus Property Alandalus Property partners with leading property Q3 2019 Property Management managers to operate its properties and provide high quality service to its customers by taking excellent care of each development 33
Slide 34: Hamat Property Company
Hamat Property Company Alandalus Property Q3 2019 Profile Main activity: Mall management services, consultancy, appraisal, leasing, marketing, and feasibility studies Capital: SAR 500,000 Ownership: 33.4% Alandalus Property Rationale Client Selection ▪ Mall management ‐ Leading mall operator across
Slide 35: Healthcare
Alandalus Alandalus Property partners with best-in-class Property Q3 2019 Healthcare healthcare providers to develop hospitals for its mixed-use developments that serve catchment area needs, open new revenue streams and further diversify enterprise risk 35
Slide 36: West Jeddah Hospital
West Jeddah Hospital Alandalus Property Q3 2019 Profile Location: ▪ Jeddah Area: ▪ 21,415 sqm (hospital) + 8,836 sqm (residence) Ownership: ▪ West Jeddah Hospital Company (50% Alandalus Property; 50% Dr. Sulaiman Al-Habib Medical Services Group) Total project cost: ▪ SAR 1.15 billion (incl. land val
Slide 37: Investments
Alandalus Property is Investments Alandalus strategic in how it carries out Property Q3 2019 its investments. We take ownership stakes in companies whose strategies are complementary to ours, providing access to yielding projects where we believe we can create even more value for our customers and s
Slide 38: Subsidiaries: Al Ahli REIT Fund I
Subsidiaries: Al Ahli REIT Fund I Alandalus Property Q3 2019 Profile Location: Jeddah Assets included: 1. Alandalus Mall 2. Staybridge Suites Ownership: 3. Salama Tower ▪ 68.73% - Alandalus Property ▪ 31.27% - Public shareholders Investment Rationale ▪ Maximize capital gains ▪ Use proceeds to positi
Slide 39: Subsidiaries: Manafe Al Andalus Property
Subsidiaries: Manafe Al Andalus Property Alandalus Property Q3 2019 Profile Main activity: Buying & selling land and property Capital: SAR 500,000 Assets : Al-Marwah Center Ownership: ▪ 70% - Alandalus Property ▪ 30% - Mohammad Abdulaziz Al Rajhi & Sons Investment Rationale ▪ Reputable strategic par
Slide 40: Associates / Sister Companies
Associates / Sister Companies Alandalus Property Q3 2019 Alandalus Property’s investments, with stakes ranging from 25% to 50%, are also directed into sister companies whose operations are aligned with those of Alandalus Capital Ownership Name Sector Property Partners (SAR in Stake million) Alaswaq
Slide 41: Financial Performance
Financial Alandalus Property Q3 2019 Performance 41
Slide 42: Q3 2019 Financial Performance - Headline
Alandalus Q3 2019 Financial Performance - Headline Property CAGR Q3 2019 10% 164.7 146.8 131.2 CAGR Operating Income (SAR) 126.7 122.6 125 102.6 -1% 108 108.8 Revenues (SAR) 107.4 103.4 97.4 92.6 +2% 9m 86.4 80.6 75.1 9m (million) (million) +7.32% FY (million) FY (million) 2014 2015 2016 2017 2018 2
Slide 43: Return Profile
Return Profile Alandalus Property Q3 2019 Steady, consistent financial performance has been reflected in key return metrics Return on Equity (ROE) 20 11.1% 11.3% 11.0% 10.9% 10 4.1% 4.6% 0 2014 2015 2016 2017 2018 9m 2019 Return on Assets (ROA) 20 8.4% 8.5% 8.6% 8.3% 10 4.0% 3.6% 0 2014 2015 2016 20
Slide 44: 9m 2019 Financial Performance – Consolidated Balance Sheet
9m 2019 Financial Performance – Consolidated Balance Sheet Alandalus Property Q3 2019 Current Ratio CAGR 46% 3.0 2.5 2.5 0.69 0.49 0.45 2014 2015 2016 2017 2018 9m2019 Debt-Assets Ratio* Debt-Equity Ratio* CAGR CAGR -21% 0.27 -27% 0.37 0.25 0.34 0.24 0.32 0.20 0.25 0.17 0.18 0.07 0.07 2014 2015 2016
Slide 45: Balance Sheet Overview
Balance Sheet Overview Alandalus Property Q3 2019 We are optimizing and deleveraging the balance sheet to maintain its robust health as we position the Company for new opportunities Total Assets (SAR million) Total Liabilities & Equity (SAR million) Right of Use Assets Current Assets Fixed Assets In
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