Dar Al Arkan Real Estate Development Co. · TADAWUL:4300
Dar Al Arkan Real Estate Development — Q1 2015 Earnings Presentation
25 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2015
Slide 1: Investor Presentation Q1 2015
Investor Presentation Q1 2015 www.alarkan.com
Slide 2: 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Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES.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 3: Table of Contents
Table of Contents I. Investment Summary II. Macroeconomic & Sector Overview III. Company Overview IV. Financial Performance 3
Slide 4: I. Investment Summary
old y DI sla By DAR ALARKAN I. Investment Summary
Slide 5: Investment Summary
Investment Summary 1 2 3 Healthy and growing real estate sector in Saudi Arabia driven Continued favourable trends in Continued focus on premium by favourable demographics and a supportive legislative backdrop land price appreciation margins 4 5 6 Proven ability to develop large- A conservative fina
Slide 6: II. Macroeconomic & Sector Overview
II. Macroeconomic & Sector Overview
Slide 7: Market Outlook
Market Outlook The Long-term outlook of the Saudi Real Estate sector remains positive Residential Land Prices – SAR/sqm Saudi Real Estate Market 4,000 2.2% 2.0% 3.0% 2.0% • (1)According to research reports, the long-term outlook of the 2,000 3,642 3,716 RE sector remains positive. 2,138 1.0% 2,092 •
Slide 8: Macroeconomic & Real Estate Sector Overview
Macroeconomic & Real Estate Sector Overview The Saudi Real Estate Sector: Underpinned by a fast growing economy, vast wealth 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 32% is under
Slide 9: Ministry of Housing (MoH) & Real Estate Development Fund (REDF)
Ministry of Housing (MoH) & Real Estate Development Fund(REDF) On-going supply shortfall forecast in residential units Long term housing demand continues to be high Total Residential Units • Majority of homes are self built and financed from savings, personal loans or REDF '000 Units loans. This cre
Slide 10: Land Tax
Land Tax Market perception of Land Tax By mid March 2015, the Council of Ministers approved in principle the levying of tax in relation to vacant land “white lands” within cities and towns in Saudi Arabia. • White lands are mainly located in the urban boundaries of the cities and tax may not be appl
Slide 11: III. Company Overview
old y DI sla By DAR ALARKAN Il]. Company Overview
Slide 12: Company overview: Dar Al-Arkan – A leading real estate developer in Saudi Arabia
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 2015: 100% 2% • Market Capitalization: SAR 9.3 bn (US$ 2.5 bn) 17% 17% Property management • Total number of
Slide 13: Land Development
Land Development Substantial and Geographically Diverse Land Bank Land revenue & gross margin (SAR Millions) • Land plots are purchased based on thorough analysis : 4,000 45.6% 50% 39.0% 42.0% — Target large cities with supply / demand gap 38.7% 40% 3,000 — Follow expansion trends from the city cent
Slide 14: Leasing Portfolio Key Assets: Al Qasr Community
Leasing Portfolio Key Assets Al Qasr Community Activity in Q1 2015 • Active negotiations with Govt. agencies for leasing significant number of residential units is ongoing. • Strategies to improve the quality of community living and customer care, is ongoing. • A total number of 101 apartments will
Slide 15: Leasing Portfolio Key Assets: Al Qasr Mall
Leasing Portfolio Key Assets Al Qasr Mall • In June 2012, Dar Al-Arkan opened the Al-Qasr Mall located adjacent Al-Qasr Mall by Numbers to the Al-Qasr project, which is the largest mall in Riyadh. • Al-Qasr Mall includes a children amusement zone, a food court and Built-up Area (sqm) 230k an 800 met
Slide 16: Leasing Portfolio Key Assets: Other Lease Properties
Leasing Portfolio Key Assets Other Lease Properties Azizia Towers (Mecca) 40,746 (100%) • Al Azizia Towers has a unique location on Prince Sultan Street in the Al Azizia district of Mecca, only 5.5 km from the Holy Mosque and 3 km from Mashaer Mina. • The towers are fully leased to King Abdullah Med
Slide 17: Residential and Commercial Developments: Shams ArRiyadh
Residential and Commercial Developments Shams ArRiyadh Shams Ar-Riyadh is Dar Al-Arkan’s second Master Planned Community and is located in Riyadh’s Al-Dariyia district • One of the largest residential development projects ever initiated in the Kingdom, comprising a total area of approximately 5mn sq
Slide 18: Residential & Commercial Developments: Juman Project
Residential & Commercial Developments Juman Project - Located between Dammam and Ras Tanura Juman project will be an integrated community providing to its residents and visitors modern waterfront living. Due to its privileged location close to Dammam downtown, Ras Tanoura and other major population
Slide 19: Residential & Commercial Developments: Other Development projects
Residential & Commercial Developments Other Development projects Shams Al Arous (Jeddah) This is the company’s third Master Planned Community and is located approximately 12km east of downtown Jeddah. • All the land has been fully developed including access to Palestine road, which is one of the mai
Slide 20: IV. Financial Performance
|\VV. Financial Performance
Slide 21: Financial Performance
Financial Performance Q1, 2015 Profitability • Revenue decreased 22% to SAR 722 mn Revenue (SAR mn) Recurring Revenue (SAR mn) (2014, Q1 SAR 924 mn). 1,000 34 33 • Land sales revenue was SAR 689 mn (2014, 32 33 33 Q1 : SAR 893 mn), down 23%. 500 924 774 751 31 607 722 30 31 31 • Property management
Slide 22: Financial Performance … cont’d: Balance Sheet and Funding
Financial Performance … cont’d Q1, 2015 Balance Sheet and Funding Cash Flow (SAR mn) • Liquidity Position: Cash balance closed at SAR 3,500 695 mn (2014: SAR 2,310 mn) after the Sukuk 305 3,000 repayment of SAR 1,523 mn in Feb 2015. 722 2,500 1,573 • New debt issued in Q1, 2015 was SAR 305 mn. 2,000
Slide 23: Financial Performance… cont’d: Income Statements
Financial Performance… cont’d Income Statements SR in 000s FY 2012 FY2013 FY 2014 Q1, 2014 Q1, 2015 Revenue 3,557,073 2,931,168 3,056,060 924,089 722,357 Cost of revenue (2,163,367) (1,778,097) (1,756,805) (521,320) (391,434) Gross profit 1,393,706 1,153,071 1,299,255 402,769 330,923 % 39.2% 39.3% 4
Slide 24: Financial Performance… cont’d: Balance Sheet
Financial Performance… cont’d Balance Sheet SR in 000s FY 2012 FY2013 FY 2014 Q1, 2014 Q1, 2015 Cash 535,771 2,279,132 2,310,196 2,060,260 694,897 Accounts Receivables 1,492,749 1,364,297 1,747,778 1,693,417 1,971,523 Pre-paid Expenses 632,781 484,201 816,697 550,037 930,216 Project in Progress-ST 4
Slide 25: Dar Al-Arkan – Built for Life
1H) {Ht old II yl DAR AL-ARKAN ls BUILT FOR LIFE
Dar Al-Arkan Real Estate Development — Q1 2015 Earnings Presentation on 6ix