Emirates Reit (ceic) Plc · NASDAQDUBAI:REIT
Emirates Reit (ceic) — Shareholder Meeting (2019)
35 slides from Emirates Reit (ceic)'s shareholder meeting presentation, 2019
Slide 1: Annual General Meeting
ilove hiaee “isl Emirates REIT iV y ANNUAL GENERAL MEETING
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Equitativa (Dubai) Limited, as the manager of Emirates REIT (CEIC) PLC (“Emirates REIT”) and Equitativa (AD) Limited, as the manager of The Residential REIT Limited (“The Residential REIT”), members of the Equitativa group of companies (referred to h
Slide 3: Agenda
AGENDA PORTFOLIO OVERVIEW FINANCIAL HIGHLIGHTS QUESTIONS AND ANSWERS RESOLUTIONS Managed by Equitativa !3
Slide 4: Portfolio Overview
PORTFOLIO OVERVIEW
Slide 5: Portfolio Overview as of 31 Mar 2019
PORTFOLIO OVERVIEW AS 31 MAR 2019 PORTFOLIO VALUE USD 941m AED 3.5b NET ASSET VALUE USD 1.70 per share USD 510m Managed by Equitativa !5
Slide 6: Dubai Prime Rental Clock
DUBAI PRIME RENTAL CLOCK Only 61,000 sq m of office GLA delivered in 2018, the lowest in 5 years Q1 2018 Q1 2019 Rental Rental Rents Rents Growth Growth Falling Falling Slowing Slowing Rental Rents Retail Rental Rents Growth Bottoming Growth Bottoming Retail Accelerating Out Hotel Accelerating Out H
Slide 7: UAE Real Estate Performance
UAE REAL ESTATE PERFORMANCE Y-O-Y 2018-2019 RESIDENTIAL COMMERCIAL RETAIL -11% -15% -15% -16% -19% Rent Sale Rent Sale Rent Increase of population VAT Introduction With positive outlook Stable With positive outlook for H2 2019 for H2 2019 Source: Asteco Managed by Equitativa !7
Slide 8: Portfolio Overview
PORTFOLIO OVERVIEW 31 MAR 19 31 MAR 18 LEASE EXPIRIES NUMBER OF PROPERTIES 11 10 LEASABLE AREA IN FT2 2.4m 2.2m WAULT IN YEARS 7.5 8.0 TOTAL OCCUPANCY 76% 82% TOTAL OCCUPANCY EXCL. SCHOOL IN DIP 82% 81% Managed by Equitativa !8
Slide 9: Portfolio Overview
PORTFOLIO OVERVIEW Managed by Equitativa !9
Slide 10: Operational Updates - Occupancy
OPERATIONAL UPDATES - OCCUPANCY Accretive impact of acquisitions of Lycée Français Jean Mermoz Occupancy of Office Park increased to 90% by Q1 2019 (Q2 2018) and 3 fully occupied office floors in Index Tower Over 60,000 sq. ft. of office space currently under offer in Index Tower Index Tower and app
Slide 11: Index Tower Performance as of 31 Mar 2019
INDEX TOWER PERFORMANCE AS OF 31 MAR 2019 OCCUPANCY BY AREA OCCUPANCY BY UNIT ANNUALISED RENT Managed by Equitativa !11
Slide 12: Operational Updates - Savings
OPERATIONAL UPDATES - SAVINGS Granular review of operations and renegotiation of contracts with savings of approximately USD 1mn Index Tower to be fully and directly managed by Equitativa with projected annual savings of approximately USD 500,000 Trident Grand Mall, synergies with TGR Community and
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 14: Total Property Income Growth
TOTAL PROPERTY INCOME GROWTH (USD M) +8.4% 18.3 17.8 17.9 16.7 16.5 17.3 15.6 13.9 14.4 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 60.6 USD 15% 69.9 USD Managed by Equitativa !14
Slide 15: Property Operating Income Growth
PROPERTY OPERATING INCOME GROWTH (USD M) +2.6% +6.7% 13.4 13.2 13.9 13.5 13.5 12.6 11.8 10.7 10.8 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 46.7 USD 14% 53.2 USD Managed by Equitativa !15
Slide 16: Balance Sheet Overview
BALANCE SHEET OVERVIEW IN USD M 31 MAR 19 31 MAR 18 VARIANCE Y-O-Y USD 1,006.4 USD 1,006.4 32.4* 33.8*** 32.9** INVESTMENT PROPERTY 941.1 869.8 +8.2% TOTAL ASSETS 1,006.4 947.1 +6.3% 463.0 Debt ISLAMIC FINANCING 463.0 397.4 +16.5% TOTAL LIABILITIES 496.8 427.4 +16.2% 941.1 Investment Property 509.6
Slide 17: FFO & Potential for Growth
FFO & POTENTIAL FOR GROWTH FY 2018 PROFORMA WITH DIP SCHOOL OCCUPIED * PROFORMA WITH INDEX AT 80% OCCUPANCY INCL. CURRENT OCCUPANCY AT INDEX AND DIP SCHOOL OCCUPIED * Dividend FFO Coverage USD 30.1mn 125% FFO Dividend USD 20.7mn Coverage USD 0.10 per share FFO USD 15.1mn Dividend Coverage USD 0.07 p
Slide 18: Summary as of 31 Mar 2019
SUMMARY AS OF 31 MAR 2019 USD 941m 223,192 m2 PORTFOLIO VALUE NET LEASABLE AREA USD 510m 76.0% NET ASSET VALUE OCCUPANCY USD 1.70 per share 7.5 years NET ASSET VALUE WAULT(1) 11 Properties 356 tenants NAV per share is calculated by the REIT administrator. Growth rates are adjusted for dividends and
Slide 19: Equity - Comparative Returns vs Comps
EQUITY - COMPARATIVE RETURNS VS COMPS Source: Bloomberg Managed by Equitativa !19
Slide 20: Sukuk Price Evolution
SUKUK PRICE EVOLUTION Source: Bloomberg Managed by Equitativa !20
Slide 21: Analyst Coverage
ANALYST COVERAGE ADD ADD 1.14 USD 1.06 USD Target price Target price Source: Bloomberg Managed by Equitativa !21
Slide 22: Questions and Answers
QUESTIONS AND ANSWERS
Slide 23: Resolutions
RESOLUTIONS
Slide 24: Ordinary Resolution 1
ORDINARY RESOLUTION 1 To receive and approve the annual report and the accounts of the REIT for the year ended 31 December 2018 together with the director's report and auditor's report on those accounts. The REIT is required to present to the shareholders the accounts of the REIT for the year ended
Slide 25: Ordinary Resolution 2
ORDINARY RESOLUTION 2 To approve the declaration of a dividend of USD 0.04 per ordinary share, an aggregate of USD 11.98 million, for the financial year ending 31 December 2018, such dividend to be paid on or before 30 June 2019 to shareholders on the register as of 13 June 2019. The Board recommend
Slide 26: Ordinary Resolution 3
ORDINARY RESOLUTION 3 To extend the appointment of Mr Abdullah Al Hashemi and Mr David Savy, each an existing member of the Investment Board, until the conclusion of the next Annual General Meeting of the REIT As per the REIT's constitution and applicable DFSA regulations, Equitativa (Dubai) Limited
Slide 27: Mohamed Sharaf Bio
MOHAMED SHARAF BIO Mohamed Sharaf is the Chief Executive Officer of Arab Media Group, the media and entertainment arm of Dubai Holding. Mohamed assumed the role in August 2018 and is responsible for spearheading AMG’s mission to be the leading media and entertainment businesses in the Middle East. B
Slide 28: Ordinary Resolution 4
ORDINARY RESOLUTION 4 To appoint Mr. Mohamed Sharaf as a new Member to the Investment Board, to hold office until the conclusion of the next Annual General Meeting of the REIT. As per the REIT's constitution and applicable DFSA regulations, Equitativa (Dubai) Limited is required to convene a meeting
Slide 29: Ordinary Resolution 5
ORDINARY RESOLUTION 5 To authorise the REIT Manager on behalf of the REIT to enter into Related Party Transactions for the acquisition or sale of Real Property in the United Arab Emirates pursuant to the DFSA CIR Rule 13.4.11A and 8.3.2 without obtaining specific approval from the shareholders of th
Slide 30: Ordinary Resolution 6
ORDINARY RESOLUTION 6 To authorize the REIT Manager to arrange the payment of interim dividends of the REIT to its shareholders, subject to the REIT having sufficient retained earnings to pay its debts as they become due immediately after the dividend is paid The Board recommends that the REIT Manag
Slide 31: Ordinary Resolution 7
ORDINARY RESOLUTION 7 To authorize the REIT to make one or more market purchases of its ordinary shares, provided, that: i. the number of ordinary shares which may be purchased in any given period and the price which may be paid for such ordinary shares shall be in accordance with the rules of the D
Slide 32: Special Resolution 1
SPECIAL RESOLUTION 1 To approve the amendment and restatement of the Articles of Association of the Company as set out in this resolution: (a) each reference to “Emirates REIT (CEIC) Limited” is hereby replaced with a reference to “Emirates REIT (CEIC) PLC”; (b) the definition of “Company” in Articl
Slide 33: Extraordinary General Meeting 2019
EXTRAORDINARY GENERAL MEETING 2019
Slide 34: Tendered To:
TENDERED TO: Managed by Equitativa !34
Slide 35: Resolution 1C - Special
RESOLUTION 1C - SPECIAL To appoint Deloitte & Touche (M.E.) as auditor of the Company to hold office with effect from the conclusion of the annual general meeting of the Company held on 19 June 2019 until the conclusion of the next annual general meeting of the Company. Managed by Equitativa !35