Dar Global (LSE: DAR)

Last close As at 26/07/2024

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.

Equity Proposition

Dar Global plc (LSE: DAR) is a premier developer of luxury branded residences catering to the world’s affluent high-net-worth individuals. With a market capitalisation of $650m, Dar Global is uniquely positioned in this lucrative niche market.

There are five compelling reasons why Dar Global represents an attractive investment opportunity.

  • Firstly, Dar Global stands out from the crowded real estate landscape through its exclusive partnerships with ultra-luxury brands such as Pagani, Marriott and Dolce & Gabbana. These collaborations result in significant marketing boosts and premium pricing power, truly setting Dar Global’s offerings apart from competitors. Moreover, the company’s capital-light business model also leads to higher returns on equity, making it an attractive investment opportunity.
  • Secondly, one of the most exciting aspects of Dar Global is its exposure to the increasing number, and rising wealth, of its target affluent high-net-worth individual client base globally. As the ranks of the wealthy continue to grow, particularly in emerging markets, Dar Global is well-positioned to cater to their burgeoning demand for luxury branded residences.
  • Thirdly, Dar Global has demonstrated remarkable sales momentum across its portfolio of projects launched over the last 18 months. This strong performance is a testament to the company’s ability to deliver high-quality, desirable properties that resonate strongly with its discerning target market of affluent buyers.
  • Fourthly, in the near term, Dar Global’s share price performance is poised for catalysts such as strategic entry into key markets like New York City and Miami in the United States, as well as the addition of new luxury brand partnerships, including the recently announced collaboration with top-end British car-maker Aston Martin. These moves underscore the company’s commitment to continued growth and innovation within its niche.
  • Finally, while the company faces some challenges such as potential lower demand for luxury real estate amid economic downturns and construction cost inflation, Dar Global is taking proactive steps to mitigate these risks. This includes executing fixed-price contracts with contractors, diversifying its geographic presence across regions, and broadening its brand partnerships and project types.

In summary, with its unique value proposition, affluent client base with rising wealth, continued robust sales momentum, strategic expansion plans into key markets and brand collaborations on the horizon, as well as robust risk mitigation strategies, Dar Global presents an exciting opportunity for investors seeking focused exposure to the burgeoning luxury real estate market. Don’t miss your chance to be a part of this exceptional company’s growth story.

Latest Insights

View More

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

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