Saudi Real Estate Co. · TADAWUL:4020
Saudi Real Estate — Al Akaria — Q3 2024 Earnings Presentation
48 slides from Saudi Real Estate's earnings presentation, Nov 13, 2024
Slide 1: Al Akaria Q3 2024 Earnings Presentation
Al Akaria Q3 2024 Earnings Presentation 13 November 2024
Slide 2: Content
CONTENT About Alakaria and its strategy 01 Financial performance Overview 02 Projects Overview 03 Appendix 04 2
Slide 3: About Alakaria
About Alakaria Earnings Presentation
Slide 4: About Al Akaria – Why Al Akaria
About Al Akaria – Why Al Akaria Our Extensive experience of being a pioneer in the market for 40 years, 1 enables us to identify and capitalize on investment opportunities “With Our extensive experience, strategic land bank locations, diversified revenue stream, strong ownership Our Strategic land b
Slide 5: About Al Akaria – Subsidiaries
About Al Akaria – Subsidiaries Al Akaria and its subsidiaries cover the entire real estate value chain Value Chain Masterplan Property Infrastructure Construction Facilities developer developer Management Al Akaria Ownership 60% 100% 60% 5
Slide 6: About Al Akaria - Land Bank Locations
About Al Akaria - Land Bank Locations Strategic landbank portfolio comprising 24 landholdings covering a total land of 23.7mn sqm Total Land Area No. of Land 23.7m Sqm 24 2 Lands 4 Lands Size 57.2% Size 1.3% MV 15.3% MV 1.5% Market Value (MV) Carrying Value SAR 9.9B SAR 3.0B 18 Lands Size 41.5% As o
Slide 7: Strategic Focus on Key Business Areas
Strategic Focus on Key Business Areas Al Akaria’s Ultimate Goal is to maximize shareholder returns, diversify earnings, and achieve a balanced and healthy capital structure that evolves around the following business areas: Lead in World-Class Quality and Service Excellence • Maintaining healthy capi
Slide 8: Financial Performance
Financial Performance Earnings Presentation
Slide 9: 9M 2024 Revenue Streams
9M 2024 Revenue Streams Diversified revenue streams, between rental, sales and subsidiaries activities 20% SAR 1,244 M 15% 65% Rental Revenue Sales Revenue Subsidiaries 9 *As of September 2024
Slide 10: Financial Performance – Summary
Financial Performance – Summary Overall improvement in profitability driven by higher revenues. 9M 2024 Revenue 9M 2024 Gross Profit 9M 2024 EBITDA 9M 2024 Total Net Income SAR Mn 1,244 SAR Mn 390 SAR Mn 292 SAR Mn 99 9% YoY 45% YoY 77% YoY 337% YoY 9M 2024 ROAE 9M 2024 Gross Profit Margin 9M 2024 E
Slide 11: Financial Performance – Revenue
Financial Performance – Revenue Revenue for 9M 2024 rose by 9% YoY, driven by growth in both standalone and subsidiary revenues. Revenue Movement YoY ( SAR Mn) 9% 11% 677 389 272 428 434 382 296 238 283 404 270 107 132 113 195 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Standalone Subsidiaries +8% +7% ➢ Revenue i
Slide 12: Financial Performance – Gross Profit and EBITDA
Financial Performance – Gross Profit and EBITDA In 9M 2024, Gross Profit Margin improved driven by Subsidiaries and Rental Properties. Gross Profit Movement YoY ( SAR Mn) Gross Profit Trend (SAR Mn) 45% 350 50% 43% 300 40% 250 30% 33% 31% 200 30% 27% 150 20% 100 10% 50 104 292 129 125 135 - 0% Q3 23
Slide 13: Financial Performance – Net Income
Financial Performance – Net Income Net profit in 9M 2024 Increased by 337% due to an increase in Standalone and all subsidiaries Net Profit. Total Net Income Movement YoY (SAR Mn) 200 30% 25% 337% 25% 150 20% 14% 100 15% 6% 10% 50 3% 5% 5 170 24 62 12 - 1% 0% Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Net Income
Slide 14: Financial Performance – Liquidity & Leverage
Financial Performance –liquidity & leverage Alakaria has maintained healthy levels of liquidity and leverage in Q3 2024 Working Capital ( SAR Mn ) Net Debt ( SAR Mn ) 1,346 3,535 1,213 905 2,442 2,305 2,226 2021 2022 2023 9 M 2024 (1,439) 2021 2022 2023 9 M 2024 Current Ratio Debt / Equity 1.31 2.55
Slide 15: Developed Projects Sales Revenue
Developed Projects Sales Revenue Two projects to fuel 2024 sales revenue: Fai Sedra-1 and Al-Akaria Park Recognized vs Unrecognized Revenue SAR 1.95 Bn 57% 43% Recognized Unrecognized 15 *As of September 2024
Slide 16: Projects Overview
Projects overview Earnings Presentation
Slide 17: Projects Capex and Source of Funds
Projects Capex and source of funds Total Capex of SAR 7.96 bn with a funding mix of Equity, debt and IGF CAPEX Source of Funds 21.6% 18% 17% 52.1% SAR 7.96 Bn SAR 7.96 Bn 26.2% 26% 39% PUDs Projects under Planning Upcoming Projects Equity (In-Kind) Equity (Cash) Debt IGF 17
Slide 18: Projects Under Development (PUDs)
Projects Under Development (PUDs) Earnings Presentation
Slide 19: PUDs - Al-Akaria Park (Freehold) – Riyadh
PUDs - Al-Akaria Park (Freehold) – Riyadh Project Summary Alkaria Park Masterplan is located in East of Riyadh. featuring 2,926 villa plots, 33 apartment plots and 46 commercial plots. 1,764,855 Sqm 1,058,938 Sqm Land Area Gross Sellable Area Project Timeline Status 97% of the work for main infrastr
Slide 20: PUDs - Al-Reef Residential Community – Riyadh
PUDs - Al-Reef Residential Community (Leasehold) – Riyadh Project Summary Al-Reef project is the first self-integrated residential community in the Diplomatic Quarter offering various housing solutions, including 64 villas and duplexes and 176 apartments supported with state-of-art communal faciliti
Slide 21: PUDs - Porta Jeddah Mixed-use Destination
PUDs - Porta Jeddah Mixed-use Destination (Leasehold) – Jeddah Project Summary Porta Jeddah leisure & work destination will feature 238 keys lifestyle hotel & serviced apartments in addition to retail/ dinning/entertainment components with GFA of 29,494 sqm & Grade A office space occupying 26,339 sq
Slide 22: PUDs - Fai Sedra (1) Residential Project
PUDs - Fai Sedra (1) Residential Project (Freehold) - Riyadh Project Summary Fai Sedra (1) is a residential scheme located within Sedra Masterplan Phase 1 offering 138 villa units with a design inspired by the Salmani Architecture 44,368 Sqm 54,708 Sqm Land Area Gross Floor Area Project Timeline Sta
Slide 23: PUDs - Fai Sedra (2) Residential Project
PUDs - Fai Sedra (2) Residential Project (Freehold) - Riyadh Project Summary Fai Sedra (2) is a residential scheme located within Sedra Masterplan Phase 2 offering 310 villa units with a design inspired by the Salmani Architecture 92,450 Sqm 105,791 Sqm Land Area Gross Floor Area Project Timeline St
Slide 24: PUDs - Tilal Commercial Centre – Riyadh
PUDs -Tilal Commercial Centre (Leasehold) - Riyadh Project Summary Flamingo Lifestyle Centre is an Outdoor Lifestyle Center features a Cluster of F&B, Retail shops & Wellness center: 9,509 sqm of GFA and office space occupying 8,935 sqm 21,561 Sqm 18,790 Sqm Land Area Gross Floor Area Project Timeli
Slide 25: Projects Under Planning (PUPs)
Projects Under Planning (PUPs) Earnings Presentation
Slide 26: PUPs - L'Avenir Mixed-use Destination – Riyadh
PUPs - L'Avenir Mixed-use Destination (Leasehold) – Riyadh Project Summary L’Avenir is a leisure and work destination that will feature lifestyle hotel offering 280 keys in addition to retail/ dinning/ entertainment with GFA of 10,544 sqm and co-working space occupying 1,768 sqm 25,500 Sqm 34,778 Sq
Slide 27: PUPs - Narjes Business Park – Riyadh
PUPs - Narjes Business Park (Leasehold) - Riyadh Project Summary Narjes business park will feature low-rise office buildings with GFA of 39,538 sqm and a cluster of F&B and retail shops offering 5,161 sqm of GFA 40,000 Sqm 44,699 Sqm Land Area Gross Floor Area Project Timeline Status 2024 2026 Desig
Slide 28: PUPs - Vyda Residential Project – Riyadh
PUPs - Vyda Residential Project (Freehold) Riyadh Project Summary Vyda is a residential scheme located within Akaria Park Masterplan offering 280 villa units. The project is a joint venture (JV) between Al-Akaria and Al-Tahaluf 88,492 Sqm 119,849 Sqm Land Area Gross Floor Area Project Timeline Statu
Slide 29: Upcoming Pipeline Projects
Upcoming Pipeline Projects Earnings Presentation
Slide 30: Upcoming Projects - Al-Akaria (1) Mixed-Use – Riyadh
Upcoming Projects - Al-Akaria (1) Mixed-Use (Leasehold) –Riyadh Project Summary Al-Akaria (1) is a transit-oriented development (TOD) offering 167 keys internationally branded hotel and a promenade featuring 16,845 sqm of F&B and retail GFA alongside 35,000 sqm of collaborative office space and 389
Slide 31: Upcoming Projects - Sitteen Vertical Residential – Riyadh
Upcoming Projects - Sitteen Vertical Residential (Leasehold) - Riyadh Project Summary Sitteen project is the vertical residential community offering various size of apartment unit including 320 apartments supported with state-of-art communal facilities and retail shops occupying 1,548 sqm on the gro
Slide 32: Appendix
Appendix Earnings Presentation
Slide 33: Restricted Lands
Restricted lands Earnings Presentation
Slide 34: Restricted land – Al Widyan
Restricted land– Al Widyan Total Land Area Carrying Value* Market Value About Al Widyan Land Sqm 7.0mn SAR 2.9bn SAR 6.4bn As of Dec 2023 • Al Akaria invested in the land for Al Widyan project. • Al Akaria was informed by the government that the land is located in an area currently under study by re
Slide 35: Not available for use lands
Not available for use lands Total Land Area Carrying Value* Market Value About the lands Sqm 10.2m SAR 438mn SAR 1.7bn As of Dec 2023 • Al Akaria lands, which are located in Benban, Al Aarid and AlDammam industrial are currently not available for use or development Lands Summary • The land restricti
Slide 36: About Al Akaria – Rental Revenue
About Al Akaria– Rental Revenue Stable revenues from a balanced combination of commercial and residential rental properties Commercial (247k Sqm) Residential (1,816 units) AL Akaria 1 Akaria Plaza Olaya Oasis Diplomatic Quarter 1 • Office GLA 10,160 sqm 32% • Office GLA 71,590 sqm 99% • Total Apartm
Slide 37: Subsidiaries
Subsidiaries Earnings Presentation
Slide 38: Subsidiaries – Binyah
Subsidiaries – Binyah “ Binyah” Margins has improved in addition to the continues improvement in Revenues. Revenue ( SAR Mn) Gross Profit ( SAR Mn) Net Income ( SAR Mn) 170 896 182 183 141 712 129 532 100 92 400 77 216 40 25 19 53 8 2019 2020 2021 2022 2023 9 M 2024 2019 2020 2021 2022 2023 9 M 2024
Slide 39: Projects summary
Projects summary Part 1 Metro Box Retaining Structure – Excavation of Car Parks A & B - Constructing of MISK City Infra DGCL Dirayah DG II Enabling works - DGCL structure Package - MISK Design & construction of Metro -box Excavation of two car parks, namely Site preparation, earthworks & Roads , Wet
Slide 40: Projects summary
Projects summary Part 2 Resort Core District Primary & Site Hoarding Works, & chain link Triple Bay North Interchange RSG Resort Core Bulk Utilities Pkg 4 - QIC Secondary Roads, bridges - QIC fencing startup site - NMDC Sewage treatment plant, irrigation water Primary & secondary roads, utilities Co
Slide 41: Subsidiaries – Tamear
Subsidiaries – Tamear Newly awarded projects has improved “ TAMEAR “ Performance in 0 . Revenue ( SAR Mn) Gross Profit ( SAR Mn) Net Income ( SAR Mn) 18 1 209 15 2019 2020 2021 2022 2023 9 M 2024 (6) 152 (14) 117 2019 2020 2021 2022 2023 9 M 2024 91 (8) (0) (39) 71 27 (67) (33) (87) 2019 2020 2021 2
Slide 42: Projects summary
Projects summary Part 1 ALMASHRIQIYA AL REEF TILAL AL RIYADH GATE 6 RENOVATION 2022 2025 2024 2025 2024 2026 2024 2025 Project Value Project Value Project Value Project Value SAR 237 MN SAR 285 MN SAR 159 MN SAR 42 MN Recognized Recognized Recognized Recognized 82% 18% 30% 70% 17% 83% 0% 100% 42
Slide 43: Projects summary
Projects summary Part2 AL-AKARIA 2&3 DQ 12 2024 2026 2024 2025 Project Value Project Value SAR 172 MN SAR 6 MN Recognized Recognized 0% 100% 0% 100% 43
Slide 44: Subsidiaries – Mumtlakat
Subsidiaries – Mumtlakat Revenue ( SAR Mn) Gross Profit ( SAR Mn) Net Income ( SAR Mn) 11 11 100 25 91 91 92 23 23 21 6 71 74 2 2019 2020 2021 2022 2023 9 M 2024 7 6 (5) 2019 2020 2021 2022 2023 9 M 2024 2019 2020 2021 2022 2023 9 M 2024 (13) 25% 25% 25% 23% 8% 10% 11% 12% 6% 2019 2% 2020 2021 2022
Slide 45: Projects summary
Projects summary Part 1 Alakaria 8 Projects Commercial & Residential Roshn Project - Sales center Alula Takaful Al Rajhi 2023 2024 2021 2024 2023 2024 2024 2025 Project Value Project Value Project Value Project Value SAR 91 MN SAR 14 MN SAR 0.2 MN SAR 7 MN
Slide 46: Projects summary
Projects summary Part 2 The National Real Estate Registry Services Company (RER) HQ, Roshn Project - WAREFA Roshn Project – HQ EVIQ - Soft Services Thumama, Royal & Dammam 2023 2026 2023 2025 2024 2025 2023 2024 Project Value Project Value Project Value Project Value SAR 11.5 MN SAR 11 MN SAR 0.8 MN
Slide 47: IR contact details
IR contact details Ayoub Alamrani Head Of Investor Relations www.al-akaria.com
Slide 48: Thank you
VF —Y — 7 bh oS ssl SINCE 197974 Thank you