Slide 1: Q3 Call Presentation 2019
2019 Q 3 C A L L P R E S E N TAT I O N H1 2019
Slide 2: Speakers
SPEAKERS Sylvain Vieujot Alain Debare Abdul Wahab Al-Halabi CEO Group Head of Real Estate CFO Managed by Equitativa 2
Slide 3: Market Overview: Average Office Rental Rates
MARKET OVERVIEW Average Office Rental Rates Asteco Report -16.8% Emirates REIT Rental Rates +1.9% PRIME GRADE A CITYWIDE 0% Knight Frank Report -1.0% -2.0% -3.0% -4.0% -5.0% -6.0% -7.0% -8.0% -9.0% -10.0% Year-on-year % change Source: Knight Frank and Asteco Managed by Equitativa 3
Slide 4: Financial Highlights Q3 2019
FINANCIAL HIGHLIGHTS Q3 2019 • Total Property Income: 4% year-on-year increase • FFO stands at USD 7.2m (AED 26.4m) to USD 54.1m (AED 198.5m) • Net Profit stands at USD 5.9m (AED 21.5m) • Total Property Expenses: reduced by 8% after accounting for unrealized revaluation losses year-on-year to USD 10
Slide 5: Portfolio Highlights
PORTFOLIO HIGHLIGHTS 5
Slide 6: Operational Highlights Q3 2019
OPERATIONAL HIGHLIGHTS Q3 2019 • Continued focus on tenant retention, cost reduction and new revenue opportunities • Rental rate increase by 1.9% in 2019 • Increase of rental income by 4% from USD 52.1mn to USD 54.1mn • Property expenses reduced by 8% to USD 10.7mn • Increase of net operating income
Slide 7: Index Tower
INDEX TOWER • Occupancy increased by 18% year-on-year to 50% with 22% increase in passing income • To improve performance and reduce costs, Index Tower commercial portfolio is now directly managed by Equitativa • Index Mall is now open with 16 units leased • Connection to the Gate Avenue completed a
Slide 8: European Business Center
EUROPEAN BUSINESS CENTER • Metro station work ongoing, expected completion Q1-2020 • Current access to the building is … bumpy • Occupancy is at 82% (-2% since Jan 19) • Expected repositioning of the building when the metro station is operational Managed by Equitativa 8
Slide 9: Annualised Rent per Property
ANNUALISED RENT PER PROPERTY Managed by Equitativa 9
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS 10
Slide 11: Total Property Income Growth
TOTAL PROPERTY INCOME GROWTH (USD M) +4% 52.1 54.1 18.3 17.8 17.9 18.3 17.9 17.3 16.5 YTD 2018 YTD 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Managed by Equitativa 11
Slide 12: Net Property Income Growth
NET PROPERTY INCOME GROWTH (USD M) +7% 40.6 43.4 16.0 14.0 13.5 13.5 13.8 13.1 12.6 YTD 2018 YTD 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Managed by Equitativa 12
Slide 13: EBITDA Growth
EBITDA GROWTH (USD M) +7% 27.1 29.0 11.6 9.3 9.3 8.8 8.5 8.6 5.4 YTD 2018 YTD 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Managed by Equitativa 13
Slide 14: Balance Sheet Overview
BALANCE SHEET OVERVIEW USD 1,103.3 USD 1,103.3 IN USD M 30 SEP 19 30 SEP 18 CHANGE 65.1(1) 55.1(4) INVESTMENT PROPERTY 1,000.3 914.7 +9% 37.9 (2) 35.2(3) TOTAL ASSETS 1,103.3 963.4 +15% 512.1 ISLAMIC FINANCING 512.1 397.6 +29% DEB T 1,000.3 IN VESTME NT TOTAL LIABILITIES 602.4 434.7 +39% PROPER TY E
Slide 15: Summary
SUMMARY USD 1.0bn 223,274 m2 PORTFOLIO VALUE NET LEASABLE AREA As of 30 Sep 2019 USD 501m 74% NET ASSET VALUE OCCUPANCY USD 1.67per share 7.9 years NET ASSET VALUE WAULT(1) NAV per share is calculated by the REIT administrator. Growth rates are adjusted for dividends and annualized. For 2011, 2012 a
Slide 16: Questions & Answers
QUESTIONS & ANSWERS EQUITATIVA
Slide 17: Thank You
THAN RK YQU EQUITATIVA