Emirates Reit (ceic) Plc · NASDAQDUBAI:REIT
Emirates Reit (ceic) — H1 2021 Earnings Presentation
23 slides from Emirates Reit (ceic)'s earnings presentation, Aug 28, 2021
Slide 1: H1 2021 Call Presentation
2021 H1 2021 CALL P R E S E N TAT I O N
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Equitativa ‘estimates’, ‘anticipates’, ‘expects’, ‘forecasts’, ‘intends’, occupier demand and tenant default and the availability (Dubai) Limited, as the manager of Emirates REIT (CEIC) ‘plans’, ‘projects’, ‘goal’, ‘target’, ‘aim’, ‘may’, ‘will’, and
Slide 3: Speakers
SPEAKERS Sylvain Vieujot Alain Debare Sheikh Muhammed Moeen Chief Executive Officer Group Head of Real Estate Chief Financial Officer Managed by Equitativa 3
Slide 4: Market Overview
MARKET OVERVIEW
Slide 5: Economic Activity
ECONOMIC ACTIVITY • The pandemic’s impact was particularly clear given • Dubai’s non-oil foreign trade in Q1 2021 was AED the sharp fall in spending in the latter half of the 354.4bn, growing by 10% from AED 323bn in Q1 in year. Nonetheless, the market was already in 2020, and by 5% compared to Q1 2
Slide 6: Dubai Office Market
DUBAI OFFICE MARKET • Dubai is still the preferred and most mature regional hub • Flexibility on lease terms is crucial in order to retain tenants for multinational tenants. and secure new occupiers • Relocation continues to be the primary driver of demand. • A continued flight to quality as tenants
Slide 7: Dubai Stock, Expected Deliveries & Rental Rates
DUBAI STOCK, EXPECTED DELIVERIES & RENTAL RATES Q2 2021 89M + 0.1% 70,000 -1% sq m GLA sq m GLA YoY Total Supply H2 2021 Average Grade A Expected Delivery CBD Rents No new stock of office space was delivered into the market Average Grade A CBD rents dropped by 1% YoY. Emirates in Dubai in Q2 2021. H
Slide 8: Portfolio Overview
PORTFOLIO OVERVIEW
Slide 9: Operational Highlights
OPERATIONAL HIGHLIGHTS H1 2021 • Active asset management enabled the REIT to maintain it’s occupancy rates, increase rental rates and the WAULT for the portfolio, despite challenging market conditions • Occupancy across the portfolio is stable at 70% (YoY -1.3% and YTD +1%) with an average passing r
Slide 10: Property Operations Highlights
PROPERTY OPERATIONS HIGHLIGHTS H1 2020 INDEX TOWER LOFT OFFICES • Occupancy increased to 56% (+9% YoY) with stable rates • Occupancy stands at 58% at Loft Offices 1 and 2 (YoY -8%) • The WAULT increased from 1.9 years to 2.2 years (+16%) as • Repurposing of Loft Offices 3, which is now fully vacant.
Slide 11: Property Operations Highlights
PROPERTY OPERATIONS HIGHLIGHTS H1 2020 BUILDING 24 • Occupancy decreased to 47% (YoY -6.4%) • Assessing proposed refurbishment of common areas to improve property standards as part of CAPEX plan TRIDENT GRAND MALL • Occupancy stands at 72% • Stable retail tenant base • Reviewing proposed soft refurb
Slide 12: Property Highlights
PROPERTY HIGHLIGHTS H1 2020 ANNUALISED RENT UNEXPIRED LEASE TERM As of 30 Jun 2021 As of 30 Jun 2021 Managed by Equitativa 12
Slide 13: Recent Developments
RECENT DEVELOPMENTS
Slide 14: Index Tower: Floor Sale & Occupancy Increase
INDEX TOWER: FLOOR SALE & OCCUPANCY INCREASE • On June 10 2021, Equitativa announced that it sold half of a shell and core office floor in Index Tower for AED 40 million. • The value of AED 3,350 per sq.ft, represents a valuation gain in excess of c. AED 18 million compared to the latest valuation o
Slide 15: Memorandum of Understanding with Jebel Ali School
MEMORANDUM OF UNDERSTANDING WITH JEBEL ALI SCHOOL • On June 14 2021, Equitativa announced that it had reached an initial agreement with Jebel Ali School in relation to the dispute on the outstanding payment of rent. • Under the terms of the agreement Jebel Ali School has paid Emirates REIT AED 21 mi
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 17: Financial Highlights H1 2021
FINANCIAL HIGHLIGHTS H1 2021 • Total Property Income increased by 8.1% YoY from • Reversal on Expected Credit Loss amounted to USD 7.0m USD 34.0m (AED 124.9m) to USD 36.8m (AED 135.2m) (AED 25.7m) v/s a charge of USD 3.8m (AED 13.9m) incl. gain on sale of investment property of USD 6.5m booked in 1H
Slide 18: Net Operating/Property Income
NET OPERATING/PROPERTY INCOME (USD M) +10.8% 30.3 27.3 18.6 15.4 13.8 13.3 14.0 13.3 11.4 11.7 H1 2020 H1 2021 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Managed by Equitativa 18
Slide 19: EBITDA
EBITDA (USD M) +93.2% 29.7 23.0 15.4 8.8 8.0 7.4 7.6 6.7 6.3 4.4 H1 2020 H1 2021 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Managed by Equitativa 19
Slide 20: FFO
FFO (USD M) +16.7x 15.6 15.9 15.6 15.9 0.9 1.0 0.8 0.1 0.4 0.9 1.0 (0.3) (2.8) (0.8) H1 2020 H1 2021 Q3 2019 (2.7) Q4 2019 (Q4 2019) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Managed by Equitativa 20
Slide 21: Balance Sheet Overview
BALANCE SHEET OVERVIEW H1 2021 IN USD THOUSAND H1 2021 FY 2020 H1 2020 CHANGE YTD USD 854.9 USD 854.9 INVESTMENT PROPERTY 724,587 690,342 857,966 +5.0% 86.1 Receivables & Others 104.7 Payables & Others Cash & Equivalents 25.7 TOTAL ASSETS 854,947 803,385 984,362 +6.4% ISLAMIC FINANCING 491,885 495,5
Slide 22: Questions & Answers
QUESTIONS & ANSWERS EQUITATIVA
Slide 23: Thank You
THAN RK YQU EQUITATIVA