Emirates REIT (REIT) Investor presentation summary

Transaction overview and capital structure

• Raised $205m through a new senior secured Sukuk to refinance existing debt, with a BB+ bond rating and first mortgage over Index Tower as collateral.

• New Sukuk matures in December 2028, carries a 7.9% IRR/YTM, and features step-up profit rates and call protection.

• Conservative leverage maintained, with net debt/EBITDA at 4.0x post-transaction and a target LTV below 30%.

• Group and collateral LTV covenants set at <40%, stepping down to 35% in year 4, with minimum cash on hand of $10m.

Company overview and strategy

• First Shari'a-compliant REIT in the Middle East, listed on Nasdaq Dubai, managing ~$991m in assets as of June 2024.

• Portfolio includes commercial, retail, and educational assets, with 91% occupancy and all schools at 100% as of June 2024.

• Focuses exclusively on income-producing assets with diversified tenant base across sectors.

• Strong management team with extensive regional and sector experience.

Market overview

• UAE real estate market shows strong momentum: 3.7% GDP growth forecast, 19.4% rise in residential rents, and 11.3% increase in prime office rents in Dubai.

• Office market faces limited new supply, high occupancy, and rising rents; prime office rents up 11% YoY, Grade A up 21%, Grade B up 24%.

• Demand outpaces supply, especially in DIFC, with constrained pipeline for next 2-3 years.