Dar Al Arkan Real Estate Development Co. · TADAWUL:4300
Dar Al Arkan Real Estate Development — Q2 2015 Earnings Presentation
25 slides from Dar Al Arkan Real Estate Development's earnings presentation, 2015
Slide 1: Investor Presentation Q2, 2015
Investor Presentation Q2, 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Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES.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 1.7% 2.0% 3,000 3,716 3,778 • (1)According to research reports, the long-term 1.0% outlook of the RE sector remains positive. 2,000 1.0% 2,138 2,159
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: III. Company Overview
old y DI sla By DAR ALARKAN II]. Company Overview
Slide 11: 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 30 June 2015: 100% 2% • Market Capitalization: SAR 9.8 bn (US$ 2.6 bn) 17% 17% Property management • Total number of e
Slide 12: Land Development
Land Development Substantial and Geographically Diverse Land Bank Land revenue & gross margin (SAR Millions) • Land plots are purchased based on thorough analysis : — Target large cities with supply / demand gap 4,000 60% 39.0% 45.6% 42.9% 42.0% — Follow expansion trends from the city centre to the
Slide 13: Leasing Portfolio Key Assets
Leasing Portfolio Key Assets Al Qasr Community Activity in Q2 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. • New Lease agreement with Hammadi Hospi
Slide 14: Leasing Portfolio Key Assets
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 15: Leasing Portfolio Key Assets
Leasing Portfolio Key Assets Other Lease Properties Azizia Towers (Mecca) 40,746 sqm (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
Slide 16: Residential and Commercial Developments
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 17: Residential & Commercial Developments
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 18: Residential & Commercial Developments
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 19: IV. Financial Performance
|\V. Financial Performance
Slide 20: Financial Performance
Financial Performance Q2, 2015 Profitability • Revenue decreased 32% to SAR 529 mn Revenue (SAR mn) Recurring Revenue (SAR mn) (2014, Q2 SAR 529 mn) driven by slower 1,000 34 than expected land trading volumes in KSA. 800 33 32.9 33.1 32 • Land sales revenue was SAR 496 mn (2014, 600 32.6 924 31 Q2
Slide 21: Financial Performance … cont’d
Financial Performance … cont’d Q2, 2015 Balance Sheet Cash Flow (SAR mn) • Liquidity Position: Cash balance increased to SAR 861 mn (Q1, 2015: SAR 2,000 695 mn). 1,800 • New debt issued in Q2, 2015 was SAR 1,600 300 mn one of its leased properties from 171 1,400 300 local bank for tenor of 12 years
Slide 22: Financial Performance … cont’d
Financial Performance … cont’d Q2, 2015 Funding • Net debt stands at SAR 5,627 mn Cost of funding Q2, 2015 Debt Profile (SAR mn) (Q1, 2015 SAR 5,255 mn). Gross debt/Capitalization stands at 27%. • Maturities are well spread and cash management is prudent. 7.8% 7.8% Murabaha 6.9% Maturity profile ext
Slide 23: Financial Performance… cont’d: Income Statements
Financial Performance… cont’d Income Statements SR in 000s FY 2012 FY2013 FY 2014 Q2, 2014 Q2, 2015 H1, 2014 H1, 2015 Revenue 3,557,073 2,931,168 3,056,060 774,210 528,689 1,698,299 1,251,046 Cost of revenue (2,163,367) (1,778,097) (1,756,805) (479,970) (299,326) (1,001,290) (690,760) Gross profit 1
Slide 24: Financial Performance… cont’d: Balance Sheet
Financial Performance… cont’d Balance Sheet SR in 000s FY 2012 FY2013 FY 2014 H1, 2014 H1, 2015 Cash 535,771 2,279,132 2,310,196 2,976,885 860,534 Accounts Receivables 1,492,749 1,364,297 1,747,778 1,897,336 1,979,536 Pre-paid Expenses 632,781 484,201 816,697 903,397 968,129 Project in Progress-ST 4
Slide 25: {Ht old II yl
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Dar Al-Arkan Real Estate Development — Q2 2015 Earnings Presentation on 6ix