Dar Global (LSE: DAR)

Last close As at 17/07/2024

USD3.34

0.00 (0.00%)

Market capitalisation

USD602m

Dar Global is a highly differentiated international real estate business. It focuses predominantly on real estate projects comprising second homes for internationally mobile customers, in some of the most desirable locations across the GCC and Europe.

The collective wealth of high-net-worth and ultra-high-net-worth individuals grew by 7.1% pa in the three years to 2021 and over 5% pa in the seven years to 2022, despite declines in 2018 and 2022 (source: Knight Frank). The concentration of wealth is expected to continue to grow, implying that the percentage of the population that enjoys such wealth is likely to have doubled in the 10 years to 2026 in many countries and regions.

Latest Insights

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Real Estate | Update

Dar Global — £200m Aston Martin branded residence unveiled

Industrials | Update

Dar Global — Demand underpins high-end branded offering

Real Estate | Flash note

Dar Global — Initial FY23 results exceed revised guidance

Real Estate | Flash note

Dar Global — 2023 revenue and profit surprise

Sector

Real Estate

Equity Analyst

Andy Murphy

Andy Murphy

Director, Financials & Industrials

Key Management

  • Shivaraman Iyer

    CFO

  • Ziad El Chaar

    CEO

Balance Sheet

Forecast net debt (US$m)

316.8

Forecast gearing ratio (%)

60

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (9.5) (9.2) (9.5)
Relative (10.5) (12.3) (18.2)
52 week high/low US$3.8/US$3.2

Financials

Dar Global’s latest luxury branded residential project, its first with Aston Martin, fits well with its strategy and follows its other recent announcements including its initiative in the Maldives with Dolce & Gabbana and its geographical expansion into Saudi Arabia. We anticipate that Dar Global will generate a return on equity in the mid-to-high teens across its portfolio in the medium term and, thus, we continue to value the company on a multiple of shareholders’ funds basis at c US$930m (US$5.17 per share), implying c 40% upside. Our forecasts are unchanged but we believe this new project implies that risks are to the upside.

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2022A 80.0 (6.9) (5.2) 0.0 N/A N/A
2023A 360.6 84.8 81.2 23.08 14.5 14.2
2024E 309.4 72.9 70.4 35.20 9.5 8.2
2025E 391.6 94.2 96.7 48.34 6.9 6.4

Thematics

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