Kuwait Financial Centre KPSC · KSE:MARKAZ
Kuwait Financial Centre KPSC — Markaz Real Estate Fund (MREF) — Investor Presentation (September 2021)
13 slides from Kuwait Financial Centre KPSC's investor presentation, September 2021
Slide 1: September 2021
September 2021 i—Sy—all| MARKAZ
Slide 2: Markaz Real Estate Fund – MREF............................... 3 Kuwait Real Estate Market Overview...................…
Markaz Real Estate Fund – MREF............................... 3 Kuwait Real Estate Market Overview.......................... 4 Real Estate Investment Opportunity…………………………………. 5 MREF Strategy……………………………………………………………………………. 6 Real Estate Investment Opportunity…………………………………. 7 MREF Financial Performanc
Slide 3: Executive summary: market, MREF, risk control, performance
Market: Kuwait Real Estate market is expected to stabilize over the coming 12 months followed by a recovery marking the beginning of a new cycle MREF: an open ended shariah compliant income generating fund, targets generating returns of c. 8%, distributing cash to investors of 5% with limited op
Slide 4: Sectors Overview
2007 2015 2025-27 2010 2021 Sectors Overview Residential Apartments: witnessing pressure due to the COVID-19 impact and the drive to lower expats numbers affecting mainly lower quality properties, expecting the sector to bottom out in the coming 6-12 months Office: witnessing pressure due to the
Slide 5: MREF fund overview and key terms
MREF is an open-ended fund, investing mainly in income generating properties with the aim of generating stable income and returns through prudent acquisition, management and disposal of properties in the most promising segments of the real estate market in Kuwait. Term: Open ended, operational sin
Slide 6: MREF Strategy
MREF adopts the following strategy : Invest in a diverse portfolio of properties with a focus on Kuwait, with the following current Asset Allocation guideline: Geography Sectors Kuwait 100% Residential 60-70% Within 4th ring road 60-70% Commercial 30-40% Assets Quality: Targeting assets without
Slide 7: MREF diverse portfolio of real estate properties
MREF invests in a diverse portfolio of real estate properties in lower risk sectors and high concentration areas within the state of Kuwait. MREF holds a balanced portfolio of 17 income producing properties Properties are distributed across sectors and governorates Fund Net Assets Value reache
Slide 8: NAV and Annual Return Since Inception
2 NAV (KWD) August 2021 KD 1.230 1.5 1 0.5 0 Apr-03 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 MREF Annual Return Since Inception (Feb-2003) 18.2% 18.2% 20.00% 14.1% 10.4% 11.5% 9.1% 8.4% 8.1% 10.00% 5.9% 6.9% 5.5% 4.
Slide 9: Distribution/Unit (Fils)
Distribution/Unit (Fils) 6 5 4 Fils/Unit 3 2 1 -
Slide 10: Operational performance: occupancy and collection
Occupancy: Collection: MREF occupancy rate stands at 82% as of August MREF collection rate stands at 102% as of August 2021 (71% including the newly completed Al Nada 2021, with a 12 month average of 96% Tower, Dasman, that represents 22% of the fund) having declined from an occupancy of 91% pre- pa
Slide 11: Investment risks
Non-comprehensive risk factors Income Concentration Legal and Political and Real Estate Structuring Currency Illiquidity Interest Insurance- Operational Distribution of Regulatory Economic Risk Industry Risk Risk Risk Risk Rate Risk related Risk Risk Risk Investments Consideration The risks associ
Slide 12: Disclaimer
This document (the “Investment Presentation”) is the lawful property of Kuwait Financial Centre K.P.S.C. (“Markaz”), which is regulated by the Capital Markets Authority and the Central Bank of Kuwait. This document and its contents are confidential and may not be distributed, reproduced or copied in
Slide 13: markaz.com
+965 2224 8000 | [email protected] markaz.com
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