Emirates Reit (ceic) Plc · NASDAQDUBAI:REIT
Emirates Reit (ceic) — H1 2024 Earnings Presentation
21 slides from Emirates Reit (ceic)'s earnings presentation, Aug 27, 2024
Slide 1: H1 2024 Earnings Call
H1 2024 EARNINGS CALL 27 AUGUST 2024 MANAGED BY
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Equitativa (Dubai) Limited (“Equitativa”) as the manager of Emirates REIT (CEIC) PLC (“Emirates REIT” or the “REIT”). This presentation is provided for informational purposes only and is not investment advice, a solicitation for an investment or the
Slide 3: Speakers
SPEAKERS AGM AGM 2024 2024 Thierry Delvaux Ross McLaughlin Moeen Sheikh Senior Executing Officer Head of Real Estate Chief Finance Officer
Slide 4: Agenda
AGENDA 1 KEY HIGHLIGHTS 2 OPERATIONAL HIGHLIGHT 3 FINANCIAL HIGHLIGHT 4 LOOKING AHEAD 5 STRATEGIC UPDATE AND Q&A
Slide 5: Key Highlights
tee Emirates REIT KEY HIGHLIGHTS EQUITATIVA
Slide 6: Key Highlights
KEY HIGHLIGHTS AGM 2024 TOTAL PROPERTY INCOME NET PROPERTY INCOME OPERATING PROFIT USD 40.4m USD 34.4m USD 25.2m +12% +16% +19% OCCUPANCY NET ASSET VALUE INVESTEMENT PROPERTIES 90.5% USD 563.2m USD 990.8m +5.1 p.p. +34% +18% USD numbers rounded to the nearest million Growth : Year on year, Jun 30, 2
Slide 7: Market Overview: Economy and Office
MARKET OVERVIEW AGM 2024 ECONOMY OFFICE GDP grew 3.6% in 2023 Supply grew only 20,000sqm in Q2-24, to 9.26m sqm Tourism, transportation, financial and insurance services, construction Expected additional 18,000sqm for H2-24 and real estate, and communications sectors driving growth Insufficient to m
Slide 8: Market Overview: Retail and Education
MARKET OVERVIEW AGM 2024 RETAIL EDUCATION Retail market was also subdued in terms of new supply during H1 24 Dubai education market continues to perform well, with strong demand In H2, growth is anticipated, with 58,000 sqm scheduled for delivery Supported by population increase (+100,000 in 23 and
Slide 9: Operational Highlights
OPERATIONAL HIGHLIGHTS MANAGED BY
Slide 10: Portfolio Overview
PORTFOLIO OVERVIEW As at 30 June 2024 PORTFOLIO VALUE COMMERCIAL RETAIL EDUCATION 1 Index Tower 7 Index Mall 9 Lycée Français Jean Mermoz USD 991m 2 Office Park 3 Loft Offices 8 Trident Grand Mall* 10 GEMS World Academy 11 Durham School AED 3.6bn 4 Building 24 5 Indigo 7 6 European Business Center N
Slide 11: Operational Highlights
OPERATIONAL HIGHLIGHTS AGM 2024 OCCUPANCY +5.1 p.p. GROSS INCOME (USD) +12% ANNUALIZED RENTS CONTRIBUTIONS 100% 100.00 90% 85% 85% 86% 76m USD/y 80.8m* 80% 80.00 72.0m* 74.4m 280m AED/y 68.8m 60% 60.00 65m USD/y 240m AED/y 40% 40.00 54m USD/y 200m AED/y 20% 20.00 44m USD/y 0% 0.00 160m AED/y 22Q4 23
Slide 12: Portfolio Performance
PORTFOLIO PERFORMANCE OPERATIONAL HIGHLIGHTS AGM 2024 As at 30 June 2024 OCCUPANCY +5.1 p.p. RENTAL RATES +10% H1 2023 H1 2024 Commercial & Retail Education 100% 2,500 93% 92% 91% 90% 88% 87% +9.4% 2,251 2,300 80% 2,203 74% 2,000 2,102 2,039 60% 60% 52% 1,500 40% 1,000 +2.5% 870 20% 830 849 849 849
Slide 13: Operating Expenses Management
OPERATING EXPENSES MANAGEMENT OPERATIONAL HIGHLIGHTS AGM 2024 OCCUPANCY (%) OPERATING EXPENSES (USD/OCCUPIED M2) 100 100 90% 80 85% 86% 80 72% 69% 60 60 92 80 40 40 70 69 64 20 20 0 0 2020 2021 2022 2023 Q2 2024 2020 2021 2022 2023 Q2 2024* *ANNUALIZED 12 MONTHS COST BASED ON H1 2024
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS MANAGED BY
Slide 15: Income and Earnings - H1 2024
INCOME AND EARNINGS - H1 2024 FINANCIAL HIGHLIGHTS AGM 2024 IN USD M, FOR THE HALF YEAR ENDED 30 JUN 2024 30 JUN 2023 VARIANCE - Y-O-Y TOTAL PROPERTY INCOME 40.4 36.0 +12% PROPERTY OPERATING EXPENSES (6.0) (6.2) -3.4% NET PROPERTY INCOME 34.4 29.8 +16% FUND EXPENSES (8.8) (7.9) +12% ALLOWANCE FOR EX
Slide 16: Income and Earnings - H1 2024
INCOME AND EARNINGS - H1 2024 FINANCIAL HIGHLIGHTS AGM 2024 NET PROPERTY INCOME +16% OPERATING PROFIT +19% NET FINANCE COST +7.3% 29.8m 34.4m 21.2m 25.2m 24.8m 26.7m H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024
Slide 17: Income and Earnings - H1 2024
INCOME AND EARNINGS - H1 2024 FINANCIAL HIGHLIGHTS AGM 2024 OPERATING COST % NET FINANCE COST % OF TOTAL PROPERTY INCOME OF TOTAL PROPERTY INCOME 18% 17% 15% 43% 67% 66% FY 2022 FY 2023 H1 2024 FY 2022 FY 2023 H1 2024
Slide 18: Balance Sheet Overview - H1 2024
BALANCE SHEET OVERVIEW - H1 2024 FINANCIAL HIGHLIGHTS AGM 2024 30 JUN 30 JUN AS AT 30 JUNE 2024 IN USD M, AS AT VARIANCE 2024 2023 92.2 (1) 100.2 (3) INVESTMENT PROPERTIES – FAIR VALUE 990.8 838.1 +18% 22.5 (2) CASH AND CASH EQUIVALENTS 22.5 22.1 +1.8% 442.1 TOTAL ASSETS 1,105.5 951.6 +16% FINANCING
Slide 19: Growth: AGM Trend 2024
GROWTH AGM TREND 2024 OPERATING COSTS (USD) -3.4% OPERATING PROFIT (USD) +19% NET FINANCE COST (USD) +7.2% 14.0 60.00 60.00 12.0m 12.0m 50.4m 53.3m 12.0 50.00 50.00 10.0 40.00 40.00 8.0 32.2m 30.00 29.1m 30.00 6.0 20.00 20.00 4.0 2.0 10.00 10.00 0.0 0.00 0.00 FY22 23Q1 23Q2 23Q3 23Q4 24Q1 24Q2 FY22
Slide 20: Strategic Update Questions & Answers
STRATEGIC UPDATE QUESTIONS & ANSWERS MANAGED BY
Slide 21: Thank You for Your Ongoing Support and Commitment
THANK YOU FOR YOUR ONGOING SUPPORT AND COMMITMENT TO OUR REIT’S SUCCESS MANAGED BY