Dar Al Arkan Real Estate Development Co. · TADAWUL:4300
Dar Al Arkan Real Estate Development — Q1 2016 Earnings Presentation
23 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2016
Slide 1: Investor Presentation Q1, 2016
Investor Presentation Q1, 2016 www.alarkan.com
Slide 2: Table of Contents
Table of Contents I. Macro-economic & Sector Overview II. Company Overview & Financial Performance III. Company Activities IV. Investment Summary V. Appendix a) P&L b) Balance sheet 2
Slide 3: I. Macro-economic & Sector Overview
I. Macro-economic & Sector Overview
Slide 4: Market Outlook
Market Outlook Long term outlook for Saudi Real Estate remains positive, despite current challenges Saudi Real Estate Market • The overall economic outlook for 2016 continues to be challenging owing to recent changes in the oil price, and the political situation in the region. However, we have seen
Slide 5: Macro-economic & Real Estate Sector Overview
Macro-economic & Real Estate Sector Overview The Saudi Real Estate Sector: Underpinned by a fast growing economy, vast wealth reserves and attractive demographic fundamentals Population Distribution by Age and Nationality(000s) 3,100 Saudi Non-Saudi • 70% of the population under the age of 35 and 40
Slide 6: DAAR overview of 2016
DAAR overview of 2016 Positive factors for 2016 • Ministry of Housing “Eskan“ and Real Estate Development Fund “REDF” o King Salman met with Housing Minister and RE development authorities end of Q1 2016 and went through the importance of developing the housing projects. o Contracts for 180,000 unit
Slide 7: II. Company Overview & Financial Performance
II. Company Overview & Financial Performance
Slide 8: Company overview
Company overview Dar Al-Arkan – A leading real estate developer in Saudi Arabia • Largest listed real estate developer in Saudi Arabia Increasing investments in leasing assets As at 31 March 2016: 100% 2% • Market Capitalization: SAR 5.7 bn (US$ 1.5 bn) 17% 17% Property management • Total number of
Slide 9: Financial Performance
Financial Performance Q1, 2016 Profitability • Revenue decreased 40% to SAR 435 mn (2015, Revenue (SAR mn) Recurring Revenue (SAR mn) Q1 SAR 722 mn) driven by slower than 1,000 40 expected land trading volumes in KSA owing to 800 30 35 35 37 31 31 33 33 33 challenging market conditions. 600 28 30 92
Slide 10: Financial Performance … cont’d
Financial Performance … cont’d Q1, 2016 Balance Sheet Cash Flow Q1 2016 (SAR mn) • Liquidity Position: Cash balance increased 2,000 62 to SAR 1.48 bn (+483 mn) mainly due to improvement in working capital. 404 168 1,500 126 • Working Capital: Collection of accounts 435 receivables decreased it by SR
Slide 11: Financial Performance … cont’d
Financial Performance … cont’d Q1, 2016 Funding • Net debt stands at SAR 4,755 mn (Q4, 2015 SAR 5,291 mn) gross Gross Debt/Capitalization Q1, 2016 Debt Profile (SAR mn) debt / capitalization stands at 25.8% 30% 26% 26% 27% 26% 26% 26% Murabaha • Maturities are well spread and 32% cash management is
Slide 12: Sukuk repayment strategy
Financial Performance … cont’d Sukuk repayment strategy • 2016 Sukuk (SAR 1.1 bn) o Already taken care of as DAAR has cash balance of SR 1.5 bn • 2018 Sukuk (SAR 1.7 bn) o Cash from operations over next 2 years SAR 3 – 4 bn o Mortgage funding against leasing portfolio: o Assets worth SR 1.1 bn readi
Slide 13: III. Company Activities
old y DI sla By DAR ALARKAN Il]. Company Activities
Slide 14: Land Development
Land Development Substantial and Geographically Diverse Land Bank • Land plots are purchased based on thorough analysis : Land revenue & gross margin (SAR Millions) — Target large cities with supply / demand gap 4,000 60% — Follow expansion trends from the city centre to the newer 38.7% 44.2% 45.6%
Slide 15: Properties
Properties Al Qasr Community Al Qasr Mall Others Al-Qasr Community by Numbers Al-Qasr Mall by Numbers Built-up Area (sqm) 1.2mn Housing Capacity 13,000 Built-up Area (sqm) 230k Total # Residential Units 3,051 Total # Villas 254 GLA (sqm) 76k Total # Apartments 2,797 # Leasable Units 429 # Villas for
Slide 16: Residential and Commercial Development
Residential and Commercial Development Shams Ar Riyadh Juman Shams Al Arous and Al Tilal Shams Ar-Riyadh is Dar Al-Arkan’s Juman is located in Dammam and will be an Shams Al Arous is the company’s third Master second Master Planned Community and is integrated, Master Planned community providing Plan
Slide 17: IV. Investment Summary
IV. Investment Summary
Slide 18: Investment Summary
Investment Summary 1 Healthy and growing real 2 3 estate sector in Saudi Arabia Longstanding land price Progress with revenue driven by favorable underlying appreciation with some recent diversification through leasing demographics and continued weakening from macro and off plan sales supportive leg
Slide 19: V. Appendix
old y DI sla By DAR ALARKAN V. Appendix
Slide 20: Financial Performance: Income Statements
Financial Performance a) Income Statements SR in 000s FY2013 FY 2014 FY 2015 Q1, 2015 Q1, 2016 Revenue 2,931,168 3,056,060 2,211,349 722,357 434,607 Cost of revenue (1,778,097) (1,756,805) (1,228,117) (391,434) (243,011) Gross profit 1,153,071 1,299,255 983,232 330,923 191,596 % 39.3% 42.5% 44.5% 45
Slide 21: Financial Performance: Balance Sheet
Financial Performance b) Balance Sheet SR in 000s FY2013 FY 2014 FY 2015 Q1, 2015 Q1, 2016 Cash 2,279,132 2,310,196 1,001,061 694,897 1,484,322 Accounts Receivables 1,364,297 1,747,778 1,948,687 1,971,523 1,573,400 Pre-paid Expenses 484,201 816,697 974,809 930,216 977,325 Project in Progress-ST 44,5
Slide 22: Disclaimer
Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES. THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS P
Slide 23: {Ht old II yl
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