Commercial Real Estate KPSC: Analyst Meeting Record – March 25, 2024 2:55am EDT

operator Hello everyone. This is My Attia from EFG Hermes.we are very happy to host Mr. Al Tijaria Call today for end-of-2023 performance results. The management team includes engineers Mr. Abdulmutaleb Malafi (CEO), Mr. Walid Wizani (Director of Finance and Strategic Planning), Mr. Fuad Hassan (Director of Accounting), and Mr. Ahmad Abbas Shakib (Deputy Director of Investment Department). , and Mr. Hager Abdel Baqi is here. , Head of IR Department. I'm going to give Mrs. Hager the phone now and start talking.

PR for investors Thank you, Mai. Hello everyone. We are very grateful for your presence.Thank you for joining us, Al. Ms. Tijaria meeting. At this conference, we will discuss our full year 2031 results.cent We will be happy to answer all your questions in December 2023. I would also like to add that today's presentation will provide an overview of Al Tijaria's operations for the full year to December 2023, an overview of its financial performance and an update on its assets.' Portfolio and investments. This presentation will be followed by a Q&A session to answer questions received via the webcast platform.

Today's presentation can be viewed at Al-.Ms. Tijaria See website and Bursa Kuwait website. Today, I'd like to start the call by reading a quick disclaimer.

”The information set forth in this presentation and subsequently provided in this discussion does not constitute an offer, agreement, or solicitation of an offer to buy or sell any securities. This is used as an investor presentation only and is provided for information only. We also recommend that you read the entire disclaimer in this presentation.”.

PR for investors presentation.

With that, I'll hand the microphone to CEO Engineer Abdulmutaleb Malafi and let's start talking.Abdulmutaleb Malafi Hello everyone. Today, I'm honored to share the latest information on behalf of our dedicated team. In 2023, Al-Tijaria achieved an impressive net profit of Q$14.423 million, a significant increase from Q$12.479 million in 2022. This growth, equivalent to 15.6%, strengthens our market position and highlights our ability to offer higher value. Shareholders. Revenues increased across operating and investing activities, reflecting our success in effectively diversifying our revenue sources. Despite a 69% increase in financing costs impacting our net income, we were able to successfully overcome these challenges due to our professional management strategy.

Significant growth was witnessed in the real estate and hospitality sector, with total revenue reaching KWD 30.6 million, an increase of 3.3% year-on-year. Notably, our total revenue in these departments increased by 581,000 won. Investment and related sector revenues also increased significantly, increasing by KWD 10.4 million to reach KWD 12.6 million in 2023.

The occupancy rate of our real estate portfolio improved, rising from 90% in 2022 to 93% in 2023. Our strategy to diversify our portfolio domestically and internationally is driven by collaboration with tenants who share our long-term vision. We are committed to providing first-class property management services and cater to both residential and commercial stakeholders. Finally, Al Tijaria is dedicated to creating added value for its shareholders by continuously improving the quality of its assets and services.

PR for investors Thank you, Engineer Abdulmutaleb. I will now hand over the call to Mr. Ahmad Shakib, Deputy Manager, Investment Department.

Ahmad Abbas Shakib Thank you, Engineer Abdulmutaleb. Hello everyone, welcome. One of the leading real estate companies, Al Tijaria has a global real estate and investment portfolio of over 70 million quads, primarily focused on the real estate sectors in the UK, Western Europe and the United States. The firm's sound investment strategy emphasizes diversification and a conservative approach, targeting profitable assets and sustainable defensive sectors, as well as safe, consistent and sustainable income streams for our valued shareholders. I am.

This proactive approach allows the company to benefit from the global market structure, ensuring an informed decision-making process to minimize risks and take advantage of profitable opportunities. It's done. In 2023, Al Tijaria participated in the acquisition of opportunistic real estate investments in the US and European markets together with strategic investors.

Additionally, we have strengthened our Palm Jumeirah projects through strategic partnerships with Emirati developers and achieved benefits by developing the Aura Dorchester project and the Miami 501 First Residences project in Miami, Florida, USA. Did. Through partnerships with local developers and strategic investors, more than 460 homes have been sold out of a total of 476 homes by the end of 2023. Additionally, we have begun selling timeshare units through our partner company, Aria Vacation Club. The Company also commenced the residential and commercial land sales phase of its Bayan Al Aziziyah project in Al Khobar, Eastern Province, Saudi Arabia, during 2023 through its affiliate Bayan Real Estate Company.

With this, I would like to conclude my speech and present to my colleagues, Mr. Fuad and Mr. Walid, Al Tijaria's financial statements for the year to 2023.

Walid Wizani Thank you, Ahmad. Today, I would like to introduce our business performance and financial highlights, including rental income. An increase is seen when comparing 2022 and 2023, from the level of 26.156 million KWD he increased to 26.62 million KWD and the occupancy rate increased from 90% to 93%. Similarly, his entertainment income increased from 2.855 million won to 3.484 million won. Overall, net income from operating activities increased from KWD 21.638 million to KWD 22.22 million.

Turning to the investment sector, investment dividends increased from Q$2.746 million to a level of Q$3.678 million, mainly due to new cash dividends from existing investments and opportunistic investments entered in 2022 and 2023. You can see that Operating revenue increased by 12.776 million won from 20.462 million won to 33.018 million won. Finance costs increased significantly from Q$6,659,000 to Q$11,262,000, mainly due to price increases by CBK. Finally, net income for FY2023 will be KRW 14,423,000 compared to KRW 12,479,000, and earnings per share will be 8.13 fils for 2023 and 6.89 fils for 2022.

In terms of total assets, total assets are increasing. In 2022, it was 553 million won, reaching the level of 561 million won. The total debt also increased from 239.9 million won to 245.9 million won. Total capital increases slightly from the level of 289.6 million KWD to the level of 291.3 million KWD when comparing 2023 and 2022. Term financing increased from 220.5 million won to 229.3 million won.

Overall, the return on equity in 2022 was 6.78% and the return on assets was 2.29% and 2.87% in 2023, respectively, compared to 7.84% in 2023. Talking about the debt ratio, the debt-to-equity ratio in 2023 is 72%, while in 2022 it is 70%.

The debt-asset ratio will be 41% in 2023, compared to 40% in 2022, and the debt-equity ratio will be 125% in 2023, compared to 120% in 2022.

This concludes my presentation. Thank you for the place busy.

PR for investors

We will be happy to answer any questions you may have.

operator

If you have any questions, could you please raise your hand?

Do you have any questions? If you have any questions, please raise your hand or write in the chat. I have a question. What is the outlook for investment books? Will it continue to grow?

PR for investors

Could you please repeat the question again?

operator future?

What are the investment prospects? Will we continue to see growth?Mr. Ahmad Shakib yes. As for the investment and pipeline question, yes, we are seeking and continue to seek opportunistic investments regionally or globally in such developed countries, particularly in real estate. We have benchmarks for both income-producing assets and development investments that produce double-digit returns. Therefore, by capturing such real estate growth and opportunistic investments, you will see an increase in your net income.

operator Have more questions? I have no other questions. Thanks guys. thank you.

PR for investors Thank you to all the speakers. Thank you everyone for your time. Thank you. I would like to thank everyone for participating and conclude this conference call. If you have further questions regarding Al Tijaria, financial or other follow-up, please contactIf so, please feel free to contact us through the Investor Unit email.

The slides and transcript of this conference call presentation will be published on the Bursa and Al Tijaria websites in the coming hours. thank you.

Abdulmutaleb Malafi thank you.