Emirates REIT (CEIC) PLC · NASDAQDUBAI:REIT
Emirates REIT (CEIC) — Shareholder Meeting (June 2022)
38 slides from Emirates REIT (CEIC)'s shareholder meeting presentation, Jun 22, 2022
Slide 1: Annual General Meeting Presentation
ANNUAL GENERAL MEETING PRESENTATION 22 JUNE 2022
Slide 2: Disclaimer
DISCLAIMER INTRODUCTION 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: Table of Contents
TABLE OF CONTENTS INTRODUCTION PAGE 3 1 MARKETOVERVIEW 2 OPERATIONAL HIGHLIGHTS 3 PORTFOLIO HIGHLIGHTS 4 GOVERNANCE & REGULATORY HIGHLIGHTS 5 FINANCIAL HIGHLIGHTS
Slide 4: Market Overview
MARKET OVERVIEW
Slide 5: Macroeconomic Overview
MARKET OVERVIEW MACROECONOMIC OVERVIEW PAGE 5 • UAE’s real GDP soared 3.8% in 2021, claiming the highest GDP growth rate • Dubai's Purchasing Managers' Index (PMI) recorded a reading of 55.7 in May 2022, the region whilst exceeding expectations of international institutions, its highest recording in
Slide 6: Dubai Office Market Update
MARKET OVERVIEW DUBAI OFFICE MARKET UPDATE PAGE 6 DUBAI OFFICE RENTS, 1Q 2022 Y-O-Y % CHANGE • Dubai saw the delivery of nearly 6,500 sq.m of office space in 1Q 2022, increasing the Emirate’s total stock to nearly 9.1 million sq.m • JLL market research forecasts 90,000 sq.m of GLA to be delivered in
Slide 7: Dubai Retail Market Update
MARKET OVERVIEW DUBAI RETAIL MARKET UPDATE PAGE 7 DUBAI RETAIL MARKET: TOTAL STOCK, EXPECTED DELIVERIES & RENTAL RATES • Around 186,000 sq.m of retail GLA was delivered in Dubai during 1Q 2022, bringing the total stock to 4.6 million sq.m • Retail rents remain on a downward trajectory, however there
Slide 8: Dubai School Market Update
MARKET OVERVIEW DUBAI SCHOOL MARKET UPDATE PAGE 8 • There are currently 215 schools operating in Dubai for the 2021-2022 academic year, offering different curricula • Owing to strong demographic trends, with the Dubai population forecast to reach 5.8 million by 2040, there is more demand for schools
Slide 9: Operational Highlights
OPERATIONAL HIGHLIGHTS
Slide 10: Operational Highlights - Office
OPERATIONAL HIGHLIGHTS - OFFICE OPERATIONAL HIGHLIGHTS PAGE 10 • Index Tower’s office occupancy levels stood at 79.5% as at March 31, 2022 (+23.5 p.p. y-o-y) having experienced strong growth of +13.1 p.p. during 1Q 2022 • Occupancy at properties in Media City / Internet City stood at 60% as at Decem
Slide 11: Operational Highlights - Retail
OPERATIONAL HIGHLIGHTS - RETAIL OPERATIONAL HIGHLIGHTS PAGE 11 • Index Mall connection to the Gate Avenue, DIFC completed in 2Q 2021 • Occupancy at Index Mall: 25.6%, a decrease of 12.7 p.p. during 1Q 2022 (-12.4 p.p. y-o-y) • Activation of community events at Index Mall: Rewind Nights, The Little F
Slide 12: Operational Highlights - Education
OPERATIONAL HIGHLIGHTS - OPERATIONAL HIGHLIGHTS PAGE 12 EDUCATION • School in DIP leased to Durham School Dubai in March 2022 • Jebel Ali School sold in May 2022 • Works for phase three at the Lycée Francais Jean Mermoz to be completed by 3Q 2022 • GEMS refurbishment plan completed in 2021, with an
Slide 13: Portfolio Highlights
PORTFOLIO HIGHLIGHTS
Slide 14: Office Portfolio - Index Tower
OFFICE PORTFOLIO - INDEX TOWER PORTFOLIO HIGHLIGHTS PAGE 14 • Occupancy: 79.5%, a strong growth in occupancy of +13.1 p.p. during 1Q 2022 (+23.5 p.p y-o-y) • Demand driven by larger shell and core space (85% of the signed leases) • Continued level of inquiries for premium fully-fitted and furnished
Slide 15: Office Portfolio - Office Park
OFFICE PORTFOLIO - OFFICE PARK PORTFOLIO HIGHLIGHTS PAGE 15 • Occupancy: 72.9%, increased by +0.6 p.p. during 1Q 2022 (+1.3 p.p. y-o-y) • Demand for smaller offices and retail. Strong level of inquiries for larger offices during 1Q 2022 • Recently refurbished (2021) and well-positioned to compete 1Q
Slide 16: Office Portfolio - Loft Offices
OFFICE PORTFOLIO - LOFT OFFICES PORTFOLIO HIGHLIGHTS PAGE 16 • Occupancy: 39.4%, increased by +1.1 p.p. during 1Q 2022 (+0.2 p.p. y-o-y) • Cluster with small SMEs has been impacted by Covid-19 disruption. Stabilized since March 2021 • Activity is currently concentrated in Loft Offices 1 & 2. Loft Of
Slide 17: Office Portfolio - European Portfolio
OFFICE PORTFOLIO - EUROPEAN PORTFOLIO HIGHLIGHTS PAGE 17 BUSINESS CENTRE • Occupancy: 69.2%, decreased by 6.3 p.p. during 1Q 2022 (-0.5 p.p. y-o-y) • Two large leases expired during the period • Access, landscape and waterproofing works have commenced. Refurbishment is planned for 2022 1Q 2022 HIGHL
Slide 18: Office Portfolio - Building
OFFICE PORTFOLIO - BUILDING 24 PORTFOLIO HIGHLIGHTS PAGE 18 • Occupancy: 45.7%, decreased by 0.4 p.p. during 1Q 2022 (-4.7 p.p. y-o-y) • Occupancy impacted by new competition and refurbished properties within the Freezone • The PMLA with TECOM was amended retroactively as from 1 January 2022 to allo
Slide 19: Office Portfolio - Indigo
OFFICE PORTFOLIO - INDIGO 7 PORTFOLIO HIGHLIGHTS PAGE 19 • Occupancy: stable at 100% over 1Q 2022 (+7.2 p.p. y-o-y) • Well established and in high demand for its’ retail and commercial space 1Q 2022 HIGHLIGHTS NET LETTABLE AREA OCCUPANCY 1,902 sq.m 100% PROPERTY INCOME WALE +1.1% q-o-q 6.7 years
Slide 20: Retail Portfolio - Index Mall
RETAIL PORTFOLIO - INDEX MALL PORTFOLIO HIGHLIGHTS PAGE 20 • Occupancy: 25.6%, a decrease of 12.7 p.p. during 1Q 2022 (-12.4 p.p. y-o-y) • Encouraging level of inquiries during 1Q 2022 • Occupancy for retail stands at 43% as of May 30, 2022 with 6 units leased post event (1,141 sq.m) • Retail remain
Slide 21: Retail Portfolio - Trident Mall
RETAIL PORTFOLIO - TRIDENT MALL PORTFOLIO HIGHLIGHTS PAGE 21 • Occupancy: stable at 71.5% over 1Q 2022 (stable y-o-y) • Retail tenants are still recovering from the Covid-19 market impact • Optimisation of operational costs and improvement of service charge recovery 1Q 2022 HIGHLIGHTS NET LETTABLE A
Slide 22: Education Portfolio
EDUCATION PORTFOLIO PORTFOLIO HIGHLIGHTS PAGE 22 LYCEE FRANCAIS JEAN MERMOZ • Progressing with works for phase three • Enrollment of new students is positive for September 2022 GEMS WORLD ACADEMY • GEMS completed a refurbishment plan, which commenced during 4Q 2020 with an upgrade to the décor and t
Slide 23: DIP School Lease
DIP SCHOOL LEASE PORTFOLIO HIGHLIGHTS PAGE 23 • On March 8, 2022 Equitativa signed a lease with international school operator Durham School LLC for its’ school property in Dubai Investment Park, a significant milestone achieved for the REIT • Durham School has a 600-year legacy of providing outstand
Slide 24: Sale of Jebel Ali School
SALE OF JEBEL ALI SCHOOL PORTFOLIO HIGHLIGHTS PAGE 24 • In May 2022 the property hosting Jebel Ali School was sold to Taaleem Holdings PSC • The aggregate consideration of the transaction to be paid by Taaleem to Emirates REIT is equal to AED 233.5 million and comprises both the property sale price
Slide 25: Governance & Regulatory Highlights
GOVERNANCE & REGULATORY HIGHLIGHTS
Slide 26: Closure of DFSA Investigations
CLOSURE OF DFSA INVESTIGATIONS GOVERNANCE & REGULATORY HIGHLIGHTS PAGE 26 • Following almost 2 years of investigative actions by the DFSA, Equitativa announced on December 8, 2021 that it had reached a settlement with the DFSA to a close all investigations • Equitativa can now turn its full attentio
Slide 27: Appointment of CEO & Board Members
APPOINTMENT OF CEO & BOARD MEMBERS GOVERNANCE & REGULATORY HIGHLIGHTS PAGE 27 THIERRY LELEU DR. FAISAL ALAYYAN SIMON TOWNSEND • Appointed CEO of Equitativa • Appointed to the Investment Board • Appointed to the Oversight Board as from April 27, 2022 of the REIT as from April 2022 of the REIT as from
Slide 28: Financial Highlights
TITLE01 FINANCIAL TITLE02 HIGHLIGHTS 28
Slide 29: FY 2021 Income and Earnings
FY 2021 INCOME AND EARNINGS FINANCIAL HIGHLIGHTS PAGE 29 IN USD MILLIONS 31 DEC 2021 31 DEC 2020 VARIANCE YOY TOTAL PROPERTY INCOME 68.6 66.0 3.9% • Total property income grew by 3.9% amidst a challenging real estate PROPERTY OPERATING EXPENSES (12.6) (14.0) -10.4% environment supported by sale of h
Slide 30: FY 2021 Balance Sheet Overview
FY 2021 BALANCE SHEET OVERVIEW FINANCIAL HIGHLIGHTS PAGE 30 IN USD MILLIONS 31 DEC 2021 31 DEC 2020 VARIANCE YOY INVESTMENT PROPERTY – FAIR VALUE 737.1 690.3 6.8% • Asset growth driven by improved property valuation and increased profitability • Decline in total liabilities - a result of scheduled r
Slide 31: FY 2021 Net Property Income & Operating Profit
FY 2021 NET PROPERTY INCOME FINANCIAL HIGHLIGHTS PAGE 31 & OPERATING PROFIT Y-O-Y +7.7% +59.3% 6.5 1.8 6.4 6.5 52.0 49.5 29.3 31.9 FY 2020 FY 2021 FY 2020 FY 2021 52.0 56.0 29.3 46.6 NET PROPERTY INCOME UP BY +7.7% - OPERATING PROFIT UP BY +59.3%
Slide 32: Financial & Capital Management Highlights
FINANCIAL & CAPITAL MANAGEMENT HIGHLIGHTS FINANCIAL HIGHLIGHTS PAGE 32 OVERALL ISLAMIC FINANCING SUKUK REFINANCING • LTV Ratio is well within the prescribed threshold of 65% - • The Sukuk liability is classified as current resulting from maturity despite taking a 25% hit in 2020 – which exhibits por
Slide 33: Dividend Distribution
DIVIDEND DISTRIBUTION FINANCIAL HIGHLIGHTS PAGE 33 • Given the strong performance the Funds From Operations (FFO) for the year • In this regard it is imperative to retain liquidity at the highest levels amounted to USD 18.4m, indicating improved capacity to declare dividends • In order to ensure tha
Slide 34: 1Q 2022 Quarterly Income and Earnings
1Q 2022 QUARTERLY INCOME AND EARNINGS FINANCIAL HIGHLIGHTS PAGE 34 FOR THE QUARTER ENDED IN USD ‘000 31 MAR 22 31 DEC 2021 CHANGE Q-O-Q TOTAL PROPERTY INCOME 17,177 16,395 +4.8% PROPERTY OPERATING EXPENSES (3,077) (2,885) +6.7% • As a result of improved occupancy & focus on core income NET PROPERTY
Slide 35: 1Q 2022 Quarterly Balance Sheet Overview
1Q 2022 QUARTERLY BALANCE SHEET OVERVIEW FINANCIAL HIGHLIGHTS PAGE 35 IN USD ‘000 AS AT 31 MAR 2022 AS AT 31 DEC 2021 CHANGE Q-O-Q INVESTMENT PROPERTY 758,339 737,132 +2.9% • Driven by continued improved valuations the Investment property CASH AND CASH 15,193 10,986 +38.3% EQUIVALENT recorded an inc
Slide 36: 1Q 2022 Net Property Income & Operating Profit
1Q 2022 NET PROPERTY INCOME FINANCIAL HIGHLIGHTS PAGE 36 & OPERATING PROFIT Q-O-Q +4.4% +14.2% 6.5 13.5 14.1 12.0 9.8 8.6 Q4 2021 Q1 2022 Q4 2021 Q1 2022 NET PROPERTY INCOME UP BY +4.4% - OPERATING PROFIT UP BY +14.2%
Slide 37: Questions & Answers
Jee Emirates REIT QUESTIONS & ANSWERS
Slide 38: Thank You
Jee Emirates REIT THANK YOU
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