Q Earnings Presentation (KSE: ALTIJARIA) Earnings Presentation Q

Transcription

1 Q Earnings Presentation (KSE: ALTIJARIA) Earnings Presentation Q

2 Table of Content 1. Business Overview 3 2. Leadership Team 5 3. Quarter Highlights 6 4. Financial Performance 7 5. Segment Reporting Ongoing Project 13 Earnings Presentation Q

3 Business Overview Al-Tijaria At a Glance Business Segments Leading commercial real estate company in Kuwait Hotel Business Quality and superior designed iconic properties Diversified portfolio of income generating properties Rental Business Building and Leasing Commercial and Residential Properties Property Management Services High occupancy levels are maintained at all times Strong network of Co Investors and Banks Earnings Presentation Q

4 Business Overview Diversified portfolio of income generating properties Presence in Kuwait Residential Buildings Retail Properties Commercial Properties 8 Buildings 469 Units 93.2% Average Occupancy 6 Properties 329 Units 90.1% Average Occupancy 6 Properties 352 Units 96.6% Average Occupancy Residential Retail Commercial Earnings Presentation Q

5 Leadership Team Board of Directors Senior Management Mr. Abdulfatah M.R. Marafie Mr. Adwan Mohammad Aladwani Mr. Ebrahim Mohammad Alghanim Chairman Vice Chairman Board Member Mr. Saleh Ahmad Al Aryan Mr. Samir Patel CEO Admin and Legal Affairs CEO Properties Group Mr. Hussain Abdulla Jowhar Board Member Mr. Abdulmutaleb AM Marafie CEO Technical Affairs Group Mr. Abdulaziz M. A. Al Hasawi Board Member Mr. Faisal I. Al Musallam Board Member Mr. Abdulmuttalib A.M. Marafie Board Member Mr. Talal J. Al Bahar Board Member Earnings Presentation Q

6 Quarter Highlights Q Financial Performance Q2 CY2017 Profit and Loss o Total revenue of KWD 10.1 million, an increase of 101.4% y-o-y o Operating Income increased to KWD 6.6 million, Margin of 65.5% o Net Profit increased to KWD 3.9 million; Margin of 38.3% Segment Performance o Real Estate segment which primarily constitutes of rental and hotel revenue o Revenue increased to KWD 7.9 million, an increase of 79.2% y-o-y o Property rental revenue increased to KWD 6.2 million, an increase of 37.1% y-o-y Operational Performance o Both Real Asset segment and Investment segment posted a strong y-o-y growth o Sale of land parcels continued in the quarter Balance Sheet Overview o Net Debt as on 30 June, 2017 KWD million as compared to KWD on 31 Dec, 2016 o Interest coverage ratio of 3.2x Earnings Presentation Q

7 Financial Performance: P&L Q2 (in KWD mn) Y-o-Y Growth (%) Six Months Ended Jun-17 Jun-16 Y-o-Y Growth (%) Real Estate % % Investment nm (40.2)% Total Revenue % % Gain from investment in associate companies % (73.2)% Operating Profit % % Margin (%) 65.5% 66.0% 66.3% 76.5% Net Profit attributable to Shareholders of the Parent Company % % Margin (%) 38.3% 40.0% 39.7% 38.1% Earnings per share attributable to Shareholders of the Parent Company (fils) % % o Total revenue increased from KWD 5.0 million in Q to 10.1 million in Q2 2017, an increase of 101.4% y-o-y o Total revenue growth is supported by robust real estate rental revenue growth of 79.2% y-o-y o Operating Income increased to KWD 6.6 million, Margin of 65.5% o Net Profit increased to KWD 3.9 million, a growth of 92.7% y-o-y; Margin of 38.3% Earnings Presentation Q

8 Financial Performance: Balance Sheet Q2 Y-o-Y (in KWD mn) Jun-17 Jun-16 Growth (%) Assets Land and properties held for trading (0.7)% Investments at fair value through profit or loss (0.6)% Trade & Other Receivables % Cash and cash equivalents (29.5)% Property, Plant & Equipment (6.8)% Investment Properties % Investment in Associates % Investments Available for Sale % Total Assets % Liabilities and Equity Trade & Other Payables (16.2)% Short Term Financing % Employees' End of Service Indemnity (14.5)% Long Term Financing % Shareholder's Equity % Non-Controlling Interests (42.2)% Total Liabilities and Equity % Investment Properties (KWD mn) Shareholder s Equity (KWD mn) Earnings Presentation Q

9 Financial Performance: Leverage Profile (KWD mn) Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Net Debt (KWD mn) Short Term Debt x Long Term Debt x 0.63x 0.65x 0.7x Total Debt x 0.58x 0.6x Less: Cash & Cash Equivalents Net Debt / (Net Cash) Net Debt Net Debt / Equity 0.5x Shareholders Equity Gross Debt / Equity 0.57x 0.60x 0.64x 0.66x 0.66x Net Debt / Equity 0.55x 0.58x 0.63x 0.63x 0.65x Earnings Presentation Q

10 Financial Performance: Quarterly Trends Total Revenue (KWD mn) Rental Revenue (KWD mn) % (10.2)% 12.2% (3.5)% % % % 54.2% 51.3% 37.1% Total Revenue Y-o-Y Growth% Operating Profit (KWD mn) Rental Revenue Y-o-Y Growth% Net Profit (KWD mn) 66.0% % % % 65.5% 40.0% % % 41.3% 38.3% Operating Profit Operating Profit Margin Net Profit Net Profit Margin Earnings Presentation Q

11 Financial Performance: Key Ratios Return on Equity % Book Value Per Share (fils) 9.8% % 4.5% 5.7% 5.5% Current Ratio (x) Interest Coverage Ratio (x) 1.2x 1.3x 1.0x 0.9x 1.2x 3.2x 4.7x 3.4x 3.2x 2.3x Earnings Presentation Q

12 Segment Reporting Focus on greater geographical diversification to minimize the concentration risk Q Net Revenue KWD 4.0 million Q Net Revenue KWD 7.3 million 3% (1)% Kuwait Gulf Countries 7% 16% 98% Others 77% Earnings Presentation Q

13 Ongoing Project: Al-Tijaria Tower Bahrain Al-Tijaria Construction Excellence; Tallest Residential Tower in Bahrain o Al Tijaria Residential Tower, is a tallest residential tower in the Kingdom of Bahrain o To be constructed over a land of 3,858 sqm, comprising of 46 storeys with 351 residential units o Construction started at the beginning of April 2017 and is expected to be completed by 2019 Earnings Presentation Q

14 Disclaimer This document is an information purpose document only. No information, forward looking statements, or estimations represent any final determination. While the information presented in this document has been researched and thought to be reasonable, in general, real estate investment is highly speculative, real estate values can go up but they can also go down, and thus The Commercial Real Estate Company ( Al- Tijaria ) and/or its affiliates cannot and do not guarantee any rate of return or invested amount or investment timeline. By reading and reviewing the information contained in this document, the investor acknowledges and agrees that Al-Tijaria and/or its affiliates do not assume and hereby disclaim any liability to any party for any loss or damage caused by the use of the information contained herein or errors or omissions in the information contained in this investor interest seeking document to make any investment decision in the venture referred to herein, whether such errors or omissions result from negligence, accident or any other cause. The investors are required to conduct their own investigations, analysis, due diligence, draw their own conclusions, and make their own decisions. Any areas concerning taxes or specific legal or technical situations should be referred to lawyers, accountants, consultants, realtors, or other professionals licensed, qualified or authorized to render such advice. In no event shall Al-Tijaria and/or its affiliates be liable to any party for direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of the information contained herein. Al-Tijaria and/or its affiliates specifically disclaim any guarantees, including, but not limited to, stated or implied potential profits or rates of return or investment timelines. Jasem J. Al Majadi The Commercial Real Estate Co. J-majadi@altijaria.com Ravi Gothwal Churchgate Partners ravi@churchgatepartners.com Earnings Presentation Q

15 Earnings Presentation Q