Salhia Real Estate Co. K.s.c. · KSE:SRE
Salhia Real Estate Co. K.s.c — Salhia Real Estate — Q2 2024 Earnings Presentation
37 slides from Salhia Real Estate Co. K.s.c's earnings presentation, Aug 14, 2024
Slide 1: Boursa Kuwait disclosure letter on analyst conference
Date: 14/08/2024 Ref.: 1b/16/2024 To: Boursa Kuwait Co. Dear Sirs, Subject: _Analyst/Investors Conference Meeting for the Second quarter of the year 2024 With reference to the above subject, and as per requirements stipulated in article No. (7- 8) “Listed company obligations” of Boursa Kuwait rule b
Slide 2: Disclosure of Material Information Form
} ile ive ‘8 Lady) pagel Disclosure of Material Information Form Name of the listed Company I4 Aug 2024 Material Infor We would like to inform you that Salhia Real Estate Company has conducted the Analyst/Investors Conference for the Second quarter of the year 2024 via a live webcast at 01:00 p.m. o
Slide 3: Q2-2024 Results Presentation
SALHIA REAL ESTATE CO. Q2-2024 Results Presentation Period Ended 30-June-24 SALHIA
Slide 4: Disclaimer / Disclosure / Forward Statement
Disclaimer / Disclosure / Forward Statement The information set out in this presentation and provided in the discussion subsequent thereto does not constitute an offer,an agreement, ora solicitation of an offer to buy or sell securities. It is solely for use at an investor presentation and is provid
Slide 5: Performance Highlights
Performance Highlights Local Investments CONTENT FOREMOST Q2 - 2024 Financial Performance Appendix
Slide 6: Group Performance
Group Perfomance Performance = = eS Highlights Revenue EBITDA Net Profit Q2-2024 ° ° ° Business Highlights « Decrease in Net Profit due to depreciation & Finance cost Increase * Continued commitment to strategy cution. ° Effic cy in under d ome D t ution SS « Commitment t Qy
Slide 7: SALHIA
SALHIA
Slide 8: Local Investment
LOCAL INVESTMENT SALHIA ARRAYA ASSIMA * Salhia Complex + Arraya Commercial Centre * Assima Complex * Sahab Tower + Arraya Plaza * Assima Tower * Salhia Plaza « Arraya Tower ¢ Marriot Executive Apartments * JW Marriot Hotel * Marriot Courtyard Hotel (MEA) * Convention Hall Salhia International Anwar
Slide 9: Salhia Complex and Sahab Tower
General Knowledge © ®& 0 8 BuiltUp GrossLeasable Q2-24 Office Q2-24 Store Area Area Occupancy Occupancy Salhia Complex + The first multi-purpose retail and leisure development in the GCC region. * 26,857 square meters of space for commercial offices. « Three floors of retail, and five floors of offi
Slide 10: JW Marriott
General Knowledge Built Up Area Number of Expected Number of Rooms Opening Restaurants JW Marriot * JW Marriott is in the center of Kuwait City’s business and financial district. * Connected to Salhia Complex & near well-known retail centers. J W * Targeted Opening late 2024 * Operated by Marriot In
Slide 11: Arraya Centre and Tower
General Knowledge “se © Built Up Gross Leasable Q2-24 Tower Q2-24 Mall Area Area Occupancy Occupancy Arraya Centre * Situated in the heart of Kuwait City * Featuring a range of shops, upscale eateries and casual hangouts. * Six-floors car park accommodating 1,400 cars, connected by suspended bridges
Slide 12: Marriott Courtyard and Convention Hall
General Knowledge 29,008 SQM Built Up Area = Number of Number of | Number of Rooms Floors Restaurants Marriot Courtyard + Adjacent to Arraya Centre and is in the center of the city. * 6 fully furnished banquet halls, a business center, and a cutting- edge swimming pool and fitness center. * Operated
Slide 13: Assima Mall
General Knowledge 180,500 & = ) Built Up Gross Leasable Q1-24 Anchor Area Area Occupancy Units Assima Mall * 20,000 SOM across four basements, a ground floor, and six floors of shops, restaurants, entertainment venues, etc. * Strong Demand for space from known brands. * Largest Mall in Kuwait City S
Slide 14: Assima Tower
General Knowledge 99,500 SQM Built Up Gross Leasable Q2 -24 Number of Area Area Occupancy Floors Assima Tower * Occupancy rate stands at 20% as of Q2 - 2024 « Project Completion January 2024. * Connected to Assima Mall, featuring a multi-story parking facility designed for the convenience of A Ss 1
Slide 15: Marriott Executive Apartments
General Knowledge Built Up Area Number of Number of = Number of Rooms Floors Restaurants Marriot Executive Apartments * Operated by Marriot International * First Marriot Executive Apartments in Kuwait + Available for short and long stay residency. + Fully equipped fitness center, dining amenities an
Slide 16: Salhia International Entertainment Center
General Knowledge KD 266,975 Built Up Number of 6M -24 Area Attractions Revenue Salhia International Entertainment Center « Exclusive National Geographic licensee. * Kuwait's first National Geographic entertainment center. « For children aged 4 to 14. Incorporating cutting-edge VR and 4D technology
Slide 17: Anwar Al Sabah Property
ANWAR M4 ALSABAH PROPERTY Acquired Land in Q1 - 2024 A neighboring land to Salhia Commercial Complex divided into 4 plots. 9,284 SQM Plot Land Number of Area Purchased Plot's 3 SALHIA
Slide 18: SALHIA
SALHIA
Slide 19: Foreign Investment
FOREIGN INVESTMENT BEORMA QUARTER, BIRMINGHAM (Salhia International Birmingham Limited) + Phase 1— Adagio Hotel & Prince's Trust + Phase 2- Residential Apartment & Office Tower SALHIA LOLWORTH DEVELOPMENT LIMITED (LDL) + Fully owned subsidiary — Land Option g SALHIA
Slide 20: Beorma Quarter Project
General Knowledge 8,268 M2 Plot Area Phase2-— Phase2Expected Number of Built Up Area Completion Apartments Beorma Quarter Project + A large-scale revitalization initiative incorporating a mix of office spaces, hotels, and residential apartments. * Located in the center of Birmingham and adjacent toa
Slide 21: Beorma Quarter - Project Phases
BEORMA QUARTER - PROJECT PHASES ME“ Phase1 MQ Phase 2 ME Phase 3 oN 1 PHASE1 “ye Oadagio Princes Tust 1 PHASE2 ~ 170,000 sq ft Grade A office 125 apartments ~ A diverse range ot associated retail >rterings | 4 ‘wel 20 rae sigsicig Sis a} oll Digbeth High sireet | PHASE3 60,000 sq ft Grade A offices
Slide 22: Progress Snapshots: Beorma Quarter Q2 2024
PROGRESS SNAPSHOT’S Beorma Quarter - Q2 - 2024 99995 7959) Re 4
Slide 23: Lolworth Developments Ltd
General Knowledge Land Area Location Established Lolworth Developments Ltd « Lolworth Development- An estimated land area of over 1 million square meters (land option), northwest of Cambridge City Center. * Aprime strategic location for developing a leading L (@) L W oO R if H technology center to f
Slide 24: Est. Projects Timeline Under Development
EST. PROJECTS TIMELINE UNDER DEVELOPMENT JAN - 2024 DEC - 2024 Q3 - 2026 4 SALHIA
Slide 25: Financial Highlights
SALHIA REAL ESTATE CO. Q2-2024 FINANCIAL HIGHLIGHTS 30-June-24 SALHIA
Slide 26: Net Profit, Net Profit Margin and EBITDA
Net Profit KD 8.00 KD7.21M 6.00 KD5.10M 4.00 2.00 neal Q2-23 Q2-24 -30% Profitability Indicators Net Profit Margin % EBITDA KD 40% 20.00 palit KD16.37M 30% 15.00 = KD 13.01M 20% 10.00 10% 5.00 0% - 0.00 Q2-23 Q2-24 Q2-23 Q2- 24 -37% +26%
Slide 27: Profitability Indicators (Continued)
Profitability Indicators e (Continued) Return on Assets % Return on Equity % 2.00% 5.00% 1.65 % 4.23 % 4.00% 1.50% 3.00% 2.87 % 1.00% 2.00% 0.50% 1.00% 0.00% 0.00% Q2-23 Q2- 24 Q2-23 Q2-24 -41% -32%
Slide 28: Revenue, Operating Expense and Gross Margin
Revenue KD 25 KD 22.27M Q2-23 Q2-24 Operating Expense KD — KD 5.03 M ou NW FU OA Q2-23 Q2-24 -9% Performance Ratios - The Group Gross Profit Margin % 80 735% 77% 60 40 20 ° Q2-24 +7% Ss) SALHIA
Slide 29: Performance Ratios - Real Estate
Performance Ratios - Real Estate Revenue KD Operating Expense KD Gross Profit Margin % 0 KD 19.38 M P ia6: KD 17.42 M KD 4.20 M 81% 4 76% 15 3 10 2 = 1 ° ° Q2-23 Q2-24 Q2-23 Q2-24 Q2- 23 Q2-24 +11% -12% +7%
Slide 30: Performance Ratios - Hospitality
Performance Ratios - Hospitality Revenue KD Operating Expense KD Gross Profit Margin % 3.0 KD264M KD2.88M KD1.31M KD132M 60 54% 50% 25 2.0 15 1.0 0.5 oe 6M-23 6M-24 - +9% + 0.76%
Slide 31: Debt Structure
Debt Structure Debt to Equity % Debt to Asset % 1.96 66% 2.0 15 1.0 0.5 0.0 Q2-23 Q2-24 +26%
Slide 32: Appendix
SALHIA REAL ESTATE CO. APPENDIX SALHIA
Slide 33: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position ASSETS Cash on hand and at banks Inventories Accounts receivable and other assets _ Financial assets at fair value through other comprehensive income Investment in a joint venture Investment properties Property and equipment TOTAL ASSETS (Audited) 30 June
Slide 34: Consolidated Statement of Financial Position (Cont'd)
Consolidated Statement of Financial Position (Cont’d) 30June 30 June 2024 i KD. Notes Accounts payable and other liabilities Commercial financing 39,607,250 _ 14,688,600 _ 37,679,057 21,358,160 TOTAL LIABILITIES 346,639,901 _ Share capital Share pi Treasury shares _ Treasury shares reserve _ Statuto
Slide 35: Consolidated Statement of Income
Consolidated Statement of Income “Revenue Operating costs Depreciation and amortization Sales and marketing expenses | Dividends income _ Recovery of insurance claims Other income, net PROFIT BEFORE PROVISION FOR CONTRIBUTION TO KUWAIT FOUNDATION FOR THE ADVANCEMENT OF SCIENCES (“KFAS”), NATIONAL LA
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Slide 37: Thank You
THANK YOU salhia.com alhia.com 6097 - 22996081 - 2299 ~) SALHIA