National Real Estate Co. S.a.k. · KSE:NRE
National Real Estate Co. S.a.k — National Real Estate Company — Q1 2014 Earnings Presentation
20 slides from National Real Estate Co. S.a.k's earnings presentation, May 28, 2014
Slide 1: National Real Estate Company Earnings Presentation Q1 FY2014
National Real Estate Company (Kuwait KSE: NRE) Earnings Presentation Q1 FY2014 May 28, 2014 NATIONAL REAL ESTATE COMPANY KSC 1
Slide 2: Agenda
Agenda 1. NREC Overview 3 2. Q1 FY2014 Summary 4 3. Financial Performance 5 4. Key Financial Ratios 7 5. Quarterly Performance Trends 8 6. Portfolio Overview 10 7. Financial Statements 15 NATIONAL REAL ESTATE COMPANY KSC 2
Slide 3: NREC Overview
NREC Overview Established in 1973 in Kuwait, the National Real Estate Company (NREC) is a listed real estate company with a presence in the Middle East and North Africa (MENA) region NREC is primarily involved in the acquisition, development, sale and management Souq Sharq Waterfront, Kuwait of
Slide 4: Q1 FY2014 Summary
Q1 FY2014 Summary Year-over-Year Financial Highlights Net Revenue from Operations increased by 142% to KD 5.5 million Well diversified revenue streams with contribution from both Rental Income and Sale of Inventory Properties Rental Income of KD 2.6 million, an increase of 16.9% y-o-y Operat
Slide 5: Financial Performance
Financial Performance Q1 y-o-y Full Year y-o-y (KD’000) FY2014 FY2013 Growth (%) FY2013 FY2012 Growth (%) Net Revenue from Operations 5,448 2,251 142.0% 17,680 12,684 39.4% Other Operating Income 3,376 3,024 11.7% 17,612 14,466 21.7% Operating Profit 4,689 3,196 46.7% 20,361 15,384 32.3% Profit Afte
Slide 6: Financial Performance
Financial Performance Year over Year Performance Discussion o Net Revenue: o Q1 FY2014 Net Revenue increased from KD 2.2 million to KD 5.5 million, primarily driven by the Sale of Inventory Properties o Egypt contributed to 74% of the inventory properties sold in Q1 2014 and Lebanon accounted for 26
Slide 7: Key Financial Ratios
Key Financial Ratios (KD’000) Q1 FY2014 Q4 FY2013 Valuation Short Term Borrowings 113,294 111,627 221 Long Term Borrowings 66,000 66,000 210 Total Debt 179,294 177,627 199 Less: Cash & Cash Equivalents (10,540) (7,203) Net Debt / (Net Cash) 168,754 170,425 Net Worth 202,614 199,255 Q1 FY2012 Q1 FY20
Slide 8: Quarterly Performance Trends
Quarterly Performance Trends Revenue from Operations (KD’000) Other Operating Income (KD’000) 17,680 17,612 11,397 6,966 7,107 5,448 4,584 3,024 3,376 2,251 Q1 FY13 H1 FY13 9M FY13 FY13 Q1 FY14 Q1 FY13 H1 FY13 9M FY13 FY13 Q1 FY14 Operating Profit (KD’000) PAT (KD’000) 16,820 20,361 9,440 11,996 6,7
Slide 9: Quarterly Performance Trends
Quarterly Performance Trends Real Estate & Other Operations Segment Revenue by Services 45.2% 39.4% 36.2% 51.7% 46.9% 48.4% 51.1% 100.0% 100.0% 100.0% 54.8% 60.6% 63.8% 48.3% 53.1% 51.6% 48.9% Q1 FY13 H1 FY13 9M FY13 FY13 Q1 FY14 Q1 FY13 H1 FY13 9M FY13 FY13 Q1 FY14 Rental Income Sale of Inventory P
Slide 10: Strategic Investments
Strategic Investments Agility at a Glance MIH at a Glance o Operates as a provider of integrated logistics, o Joint venture between NREC and the Corinthia freight forwarding and specialty services across Group 100 countries o Established with a focus of investing in real o Two main businesses: Agili
Slide 11: MENA Geographical Focus
MENA Geographical Focus Successful track record of developing real estate projects in the MENA region 100% Lebanon Iraq 51% Kuwait 100% Jordan Libya UAE Egypt 70% 79% 100% 50% Represents NREC shareholding NATIONAL REAL ESTATE COMPANY KSC 11
Slide 12: Development Portfolio
Development Portfolio Egypt Egypt Lebanon Lebanon Current Sales Grand Heights - 1 Grand Heights - 2 West End Pearl Total Area1: 3.7 million m² Total Area1: 3.7 million m² Total Area: 8,000 m² Total Area: 7,700 m² Type: Residential Villa Type: Residential villa Type: Commercial Offices Type: Commerci
Slide 13: Kuwait Rental Portfolio
Kuwait Rental Portfolio Shopping / Resorts Commercial Complex Souq Sharq Waterfront Dasman Complex Wataniya Tower Total Area: 31,460 m² Total Area: 17,009 m² Total Area: 3,363 m² Use: Retail shops Use: Commercial complex Use: Commercial complex Occupancy: 97% Occupancy: 99% Occupancy: 99% Completion
Slide 14: International Rental Portfolio
International Rental Portfolio Residential / Industrials Libya Jordan Palm City Residence The South Project Total Area: 141,000 m² Total Area: 1.5 million m² Use: Residential villa, mixed use Use: Modern and qualified Occupancy: 97% warehousing Units Completion: 2010 Occupancy: 92% Est. Completion:
Slide 15: Financial Statements
Financial Statements Comparative Consolidated Income Statement Income Statement Q1 FY2013 Q1 FY2014 Rental Revenues 2,251,496 2,631,391 Sale of Real Estate inventory properties 0 2,817,059 Total revenue 2,251,496 5,448,449 General and administrative expenses (836,956) (1,364,074) Staff Expense (1,24
Slide 16: Financial Statements
Financial Statements Consolidated Statement of Financial Position - Assets Assets 31-Mar-13 31-Dec-13 31-Mar-14 Bank balances and cash 5,939,165 7,202,610 10,539,833 Investments Available For Sale 4,506,904 3,614,757 3,271,258 Accounts receivable and prepayments 8,709,893 9,702,849 11,258,157 Proper
Slide 17: Financial Statements
Financial Statements Consolidated Statement of Financial Position - Liabilities Liabilities 31-Mar-13 31-Dec-13 31-Mar-14 Accounts payable and accruals 135,807,508 144,006,500 144,006,500 Bank borrowings 180,266,378 177,627,487 177,627,487 Employees’ terminal benefits 1,169,172 1,142,450 1,142,450 T
Slide 18: Financial Statements
Financial Statements Consolidated Cash Flow Statement Q1 FY2014 Q1 FY2013 Cash Flows from Operating Activities: Profit for the period before taxation and Board of Directors ‘ remuneration 4,512,049 2,731,225 Adjustments for: Share of results from an associate (2,510,245) (2,273,775) Share of results
Slide 19: Financial Statements
Financial Statements Consolidated Cash Flow Statement Q1 FY2014 Q1 FY2013 Cash Flows from Investing Activities: Purchase of property and equipment (172,193) (91,063) Proceed from sale of property and equipment - 7,543 Proceeds from sale of investments available for sale 548,834 308,966 Interest inco
Slide 20: Contact and Disclaimer
Shiv Hiremath s.hiremath@nrec.com.kw National Real Estate Co. John Nelson nrec@churchgatepartnersindia.com Deepak Balwani +91 22 3953 7444 Churchgate Partners Disclaimer: This presentation contains statements that contain “forward looking statements” including, but without limitation, statements rel
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