REG - Dar Global PLC - Trading Update
26/04/2023 07:00
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RNS Number : 4319X Dar Global PLC 26 April 2023
Dar Global PLC
LEI: 213800XRFXQ1KEWACW80
26 April 2023
Dar Global PLC ("Dar Global" or "the Group")
Trading Statement for Q1-2023 and financial information for the year ended 31
December 2022
As set out in the Prospectus published by the Group on 23 February 2023, Dar
Global PLC, the luxury international real estate developer, is pleased to
announce a trading update on the Group's financial position and performance
including certain key unaudited financial information in relation to the
full-year ended 31 December 2022. This update also includes a profit and loss
statement for the three months to 31 March 2023 and the balance sheet as at 31
March 2023. The Group is expecting to release its half-year financial results
covering the period ending 30 June 2023 no later than 30 September 2023.
The Group was admitted to the Main Market of the London Stock Exchange on 28
February 2023. It focuses predominantly on developing real estate projects
comprising of second homes for internationally mobile customers, in some of
the most desirable locations across the Middle East and Europe, with plans to
also develop hospitality assets.
Ziad El Chaar, CEO, commented:
"Dar Global has delivered excellent financial and operational performance
since our successful listing, with growth across all key metrics.
"Our expansion in the luxury second homes market across the Middle East and
Europe has generated strong interest from buyers seeking the best in luxury
investment opportunities and exceptional properties that cater to their
internationally mobile lifestyles. Unlike other customer groups, the
investment decisions of the Ultra High Net Worth Individuals (UHNWI) who we
typically serve are unaffected by the current global economic uncertainty,
which helps ensure a consistent performance for Dar Global throughout the
cycle.
"Since listing, we have unveiled several exciting new developments and
partnerships which continue to set Dar Global's business apart. These include
the launch of AIDA in Oman, Dar Global's first integrated master plan and DG1,
our first own-brand luxury living concept in Dubai's Business Bay district.
"During the year, we are planning to further expand our luxury brand portfolio
offering with prestigious projects in the Spanish regions of Benahavis and
Finca Cortesin, which will be developed in collaboration with world renowned
luxury brands. Additionally, we are making our debut in hospitality with the
renowned 'Made in Italy' brand, Dolce & Gabbana, to create a signature
hospitality experience in the Maldives.
"These projects position Dar Global as a highly differentiated leader in
luxury property development, well-prepared to navigate the wider
macro-economic uncertainties and deliver sustainable growth for our
shareholders. We are pleased with our progress to date on all our projects,
sales continue to perform in line with our expectations and we are confident
about our prospects given the markets we have chosen to be active in."
Highlights:
· Improved earnings in Q1 2023 as the Group progresses towards the
delivery of its first residential project - the Urban Oasis Tower by Missoni
in Dubai, UAE;
· Strong liquidity with cash and cash equivalents of c. US$171 million
(includes escrow retentions) as at 31 March 2023;
· Portfolio GDV of US$4,810 million as at 31 March 2023 across 11
active projects in the UAE, Qatar, Oman, UK, Spain, and Bosnia (31 December
2022: 10 active projects with GDV of US$4,652 million);
· Contracted sales as at 31 March 2023 amounting to a total sales
value of c. US$589 million (c. 12% of the total GDV) in relation to 948 units;
· New development launches during Q1 2023 included AIDA, Dar Global's
development in Oman to build c. 4,000 homes on a new golf course development
and DG1, Dar Global's first own-brand luxury living concept comprising 221
apartments, located in the heart of Dubai's Business Bay district;
· New brand partnerships - Dolce & Gabbana / Maldives: The Group
unveiled its partnership with the world-renowned luxury brand, Dolce &
Gabbana in its debut in the hospitality industry. This partnership marks the
launch of a bespoke hospitality project that seamlessly merges the unrivalled
style and sophistication of Dolce & Gabbana with Dar Global's unparalleled
attention to detail and world-class standards in the Maldives.
Highlights Q1 2023 FY 2022
(US$M) (US$M)
Unaudited Unaudited
Revenue 35.1 80.0
Operating Profit 16.3 28.7
Operating Profit Margin 46.3% 35.9%
Profit before Exceptional Items 3.9 (0.1)
Exceptional Items 1 (#_ftn1) 1.0 (13.7)
Profit after Exceptional Items 4.9 (13.8)
Finance Cost and Depreciation 1.1 6.6
EBITDA before exceptional items 5.0 6.5
Net Asset Value 382.7 281.4
Highlights - Balance Sheet Q1 2023 FY 2022
(US$M) (US$M)
Unaudited Unaudited
Assets
Cash and cash equivalents 2 (#_ftn2) 171.0 118.5
Advances, deposits and other receivables 158.7 121.7
Development properties 296.6 259.7
Liabilities
Accounts payables and provisions 33.1 30.7
Advances from customers 123.5 94.5
Bank borrowings 63.8 69.7
Other liabilities 35.9 34.7
Equity
Total Equity 382.7 281.4
Operational Review for Q1 2023
The Group is pleased to provide an update to the operational performance of
Dar Global across new acquisitions, development projects and contracted sales
for Q1 2023.
Development Properties
In Q1 2023, the Group's development properties increased by c. US$56 million
(including land acquisition of c. US$46 million and project spend of US$10
million) while US$19 million was transferred to cost of sales relating to
revenue recognised for the Urban Oasis Project, bringing the net increase to
US$37 million.
UAE - Three active projects and one new launch
Urban Oasis - The Urban Oasis tower is a 34-storey residential development
located on the Dubai Canal and will contain bespoke apartments with interiors
designed in collaboration Missoni, the Italian fashion designer. Construction
is 88% completed with expected project completion in Q4 2023. As at 31 March
2023, 419 units out of 465 had been sold.
Pagani Tower - The refurbishment stage of the Da Vinci Tower project, in
partnership with Italian supercar brand Pagani is expected to be fully
completed by Q2 2024. The show apartment was completed in September 2022 and a
contract for the fit-out is expected to be awarded in May 2023 to a premium
global contractor. As at 31 March 2023, 29 units out of 85 had been sold.
W Residences - The W Residences project was launched in early 2022. The Group
has begun the main works on the project and has awarded the construction
contract to China State Construction Engineering Corporation Middle East
(CSCEC ME), the world's largest transnational multidisciplinary conglomerate
in civil, industrial engineering and real estate development. The project is
expected to be fully completed in Q2 2026. As at 31 March 2023, 376 units out
of 385 had been sold.
DG1 - The Group unveiled DG1 as its first 'own-brand' property in March 2023.
This 20-storey tower will comprise 221 units, including one, two, and
three-bedroom apartments and Dar Global has partnered with Gensler Architects
on the design of the property. DG1's iconic design offers stunning views of
the Dubai Canal and Burj Khalifa from every angle. DG1 represents Dar Global's
vision of luxury living, combining sophisticated design, luxurious finishes,
and remarkable craftsmanship. The launch of Dar Global's signature brand with
DG1 is set to create a new benchmark in Dubai's luxury living space, making it
a highly desirable property.
Qatar - One active project comprising of five residential buildings
Les Vagues - The Les Vagues project features 303 opulent sea-front residences
of one, two and three-bedroom apartments. Construction is expected to commence
in Q4 2023 and the project is expected to be completed by December 2027. The
main contractor for this project is in the process of being appointed. As at
31 March 2023, 31 units out of 303 had been sold.
Oman - A master plan comprising of a Trump branded golf course, a club house,
residential units and hotels
AIDA - The AIDA project is expected to be phased over 10 years, with a plan
to launch one phase per year. AIDA is set to redefine luxury living with its
breath-taking views, immersive experiences, and spectacular outdoor
landscapes. The project is being developed sustainably, preserving the area's
topography and unique environmental features, which adds to its appeal.
The first phase of the project was launched in the second half of March 2023
and generated significant interest from customers worldwide. Infrastructure
works are expected to commence in Q2 2023 and the project is expected to be
fully completed in December 2034. This project will be developed in
partnership with the OMRAN GROUP (Oman Tourism Development Company) and the
Trump Organisation.
United Kingdom - a single floor residential unit located in Old Park Lane,
London
Old Park Lane - Situated on the corner of Old Park Lane and Piccadilly and
overlooking Green Park, 149 Old Park Lane is a sophisticated landmark building
with an important role in London's architectural heritage. Refurbishment works
are in progress and are expected to complete by Q1 2024.
Spain - Dar Global has acquired land parcels across the south of Spain,
primarily in the Costa De Sol region
Benahavis - Benahavis is a Spanish town and municipality in the province of
Malaga, which is located seven kilometres from the coast and is in close
proximity to the city of Marbella. Permits have been secured allowing a launch
in June 2023. The Group aims to build a premium villa community on this
property with a collaboration agreement signed with a premium Italian luxury
brand. Construction is expected to commence in Q3 2023.
Manilva (Tabano) - In September 2022, Dar Global acquired six plots of land in
the municipality of Manilva in the province of Malaga on the border with the
province of Cadiz in southern Spain. The plots are located approximately 45
minutes from Marbella by car and are close to several polo clubs and one of
the best beach areas of Costa del Sol. The total land area of the Tabano
project is 4,650,092 square meters.
The Tabano project is currently in the early permitting stage and is expected
to be completed in December 2029. AECOM consultants have been appointed for
the development of the concept master plan and associated infrastructure plan.
Finca Cortesin - This project is located in one of the most sought-after
enclaves of the Andalusian coast, not far from the Finca Cortesin resort which
has an 18-hole championship golf course rated among Spain's best golf courses.
Marbella is just a short drive away. The design phase is currently underway in
collaboration with an Italian fashion designer.
Bosnia
Sidra - Sidra is a relatively small development project of the Group in Bosnia
that accounts for 0.8% of the total estimated cost of all of the Group's
projects. The site is situated in Ravne, Vares, 38 km outside Sarajevo, the
capital of Bosnia. The Project has been awarded to M/s Cestohnik as the main
contractor for carrying out infrastructure works, which are currently underway
and the project is expected to complete in Q4 2024. As at 31 March 2023, 89
units out of 476 had been sold.
All financial statements are presented in United States Dollars (US$) which is
the Group's functional and presentation currency.
UNAUDITED FINANCIAL INFORMATION
This section includes certain additional unaudited financial information for
the Group as at and for the three-month period ended 31 March 2023.
Unaudited combined statement of financial position
as at March 31, 2023
(In United States Dollar)
March 31, 2023
Assets............................................................
Cash and bank balances................................. 164,682,018
Advances, deposits and other receivables..... 158,726,161
Development properties............................... 296,559,845
Escrow retentions......................................... 6,345,086
Other assets.................................................. 13,119,972
Property and equipment............................... 3,945,893
Total assets.................................................... 643,378,975
Liabilities and Equities
Liabilities......................................................
Accounts payables and provisions.................. 33,067,553
Advances from Customers............................. 123,498,696
Retention Payable......................................... 4,443,869
Other Liabilities............................................ 35,868,086
Loans and borrowings.................................... 63,809,155
Total liabilities............................................... 260,687,359
Equity............................................................
Share capital................................................. 1,800,215
Capital Contribution...................................... 376,951,364
Retained Earning/(Accumulated losses)......... 3,940,037
Total equity................................................... 382,691,616
Total equity and liabilities............................. 643,378,975
Unaudited combined statement of profit or loss for the three months ended
March 31, 2023
(In United States Dollar)
March 31, 2023
Revenue........................................................ 35,133,098
Cost of revenue............................................. (18,860,264)
Gross Profit................................................... 16,272,834
Other income................................................ -
Selling and distribution expenses.................. (4,322,461)
Administrative expenses............................... (7,131,635)
Finance costs................................................. (878,701)
Profit/Loss before tax................................... 3,940,037
Income tax (expenses) / credit......................
Profit/Loss for the period............................. 3,940,037
Attributable to:
Owners of the company................................ 3,940,037
Non-Controlling Interests.............................. -
3,940,037
Appointment of Corporate Broker and Financial Adviser
Following its recent listing on the Main Market of the London Stock Exchange,
Dar Global PLC has appointed Liberum Capital Limited as its sole corporate
broker and financial adviser.
For further information, please contact:
Dar Global
Abhilash Paul, Director Investor Relations apaul@darglobal.co.uk (mailto:apaul@darglobal.co.uk)
ir@darglobal.co.uk (mailto:ir@darglobal.co.uk)
Powerscourt +44 (0) 20 7250 1446
Justin Griffiths / Nick Dibden / Louisa Henry darglobal@powerscourt-group.com (mailto:darglobal@powerscourt-group.com)
About Dar Global
Dar Global PLC is a highly differentiated international real estate business.
It focuses predominantly on developing real estate projects comprising second
homes for internationally mobile customers, in some of the most desirable
locations across the Middle East and Europe, including downtown Dubai, Muscat
in Oman and the Costa del Sol region in Southern Spain.
Dar Global was originally established to house and develop the international
(non-Kingdom of Saudi Arabia based) assets of Dar Al Arkan Real Estate
Development PJSC ("DAARE"), a leading real estate developer in the Kingdom of
Saudi Arabia. Listed on the Saudi Stock Exchange since 2007, Dar Al Arkan has
delivered over 15,000 residential units with total assets of c. US$8.5
billion.
The Group also plans to expand its focus to hospitality assets. The aim is to
acquire or build hotels and sell them after a period of three to five years of
operation once the hotels or resorts' revenue streams stabilise. Target
markets include Southern Spain, Dubai, Maldives, Athens, Marrakesh and London.
Dar Global was admitted to the Main Market of the London Stock Exchange on 28
February 2023.
Please visit www.DarGlobal.co.uk (http://www.DarGlobal.co.uk)
This trading update may contain certain forward-looking statements about the
future outlook for the Group. By their nature, forward-looking statements
involve risk and uncertainty because they relate to future events and
circumstances. Actual outcomes and results may differ materially from those
expressed or implied by such forward-looking statements. Any forward-looking
statements made by or on behalf of Dar Global PLC speak only as of the date
they are made and no representation or warranty is given in relation to them,
including as to their completeness or accuracy or the basis on which they were
prepared. Except as required by its legal or statutory obligations, the Group
does not undertake to update forward-looking statements to reflect any changes
in its expectations with regard thereto or any changes in events, conditions
or circumstances on which any such statement is based. Information contained
in this document relating to the Group or its share price, or the yield on its
shares, should not be relied upon as an indicator of future performance.
1 (#_ftnref1) Includes expenses related to Dar Global's public listing on
the LSE
2 (#_ftnref2) Includes escrow retentions of US$6.3 million
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