Kuwait Financial Centre KPSC · KSE:MARKAZ
Kuwait Financial Centre KPSC — Markaz Real Estate Fund (MREF) — Investor Presentation (March 2024)
13 slides from Kuwait Financial Centre KPSC's investor presentation, March 2024
Slide 1: Markaz Real Estate Fund March 2024
Markaz Real Estate Fund March 2024
Slide 2: Contents
Contents 3 Markaz Real Estate Fund - MREF 4 Kuwait Real Estate Market Overview 5 Real Estate Investment Opportunity 6 MREF Strategy 7 Real Estate Investment Opportunity 8 MREF Financial Performance 9 MREF Monthly Distribution 10 MREF Operational Performance 11 Investment Risk 12 Disclaimer 2
Slide 3: Markaz Real Estate Fund - MREF Executive Summary
Markaz Real Estate Fund - MREF Executive Summary § MREF: an open ended shariah compliant income generating fund, targets generating returns of c. 8%, distributing cash to investors of 5% with limited operational risk exposure. § Risk Control: There are risks associated with real estate investments w
Slide 4: Kuwait Real Estate Market Overview
Kuwait Real Estate Market Overview Kuwait Real Estate market is expected to stabilize over the coming period with moderate increase marking the beginning of a new cycle 2007 2015 2025-27 2010 2021 Sectors Overview § Residential Apartments: witnessed a moderate upward movement mainly in the low-mediu
Slide 5: Real Estate Investment Opportunity: MREF Terms
Real Estate Investment Opportunity Markaz Real Estate Fund “MREF” 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
Slide 6: MREF Strategy
MREF Strategy MREF, open ended Shariah compliant real estate fund, targets generating returns of 8%, distributing cash monthly of 5% to investors with limited risk exposure MREF adopts the following strategy: § Invest in a diverse portfolio of properties with a focus on Kuwait, with the following cu
Slide 7: Real Estate Investment Opportunity: Asset Allocation
Real Estate Investment Opportunity Asset Allocation 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 sec
Slide 8: MREF Financial Performance
MREF Financial Performance MREF, with 0% leverage, generated total returns of 171% since inception in 2003 equivalent to an IRR of 7.5% p.a between 2003 and February 2024 and distributed monthly cash dividends of c.5% NAV (KWD) 2 February 2024 KD 1.295 1.5 1 0.5 0 3 04 6 07 9 10 2 13 5 16 8 19 1 22
Slide 9: MREF Monthly Distributions
MREF Monthly Distributions Since MREF establishment in 2003, the fund successfully made monthly distributions. Since November 2020, distributions stand at 5.225 Fils per unit per month, representing 4.8% annualized yield on NAV Distribution/Unit (Fils) 7.00 5.225 6.00 5.00 4.00 3.00 2.00 1.00 - Oct-
Slide 10: MREF Operational Performance
MREF Operational Performance MREF targets healthy occupancy and collection levels through an efficient and hands- on approach to the daily management of the fund and the fund service providers Occupancy: Collection: MREF occupancy rate stands at 90% as of February 2024 MREF collection rate stands at
Slide 11: Investment Risk
Investment Risk There are risks associated with real estate investments which we aim at minimizing in our operations Non-comprehensive risk factors Political and Real Estate Income Legal and Structuring Currency Illiquidity Interest Insurance- Operational Concentration Economic Industry Distribution
Slide 12: Disclaimer
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 o
Slide 13: Thank you.
Thank you. +965 2224 8000 | [email protected] markaz.com
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