Dar Global 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.
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.
Industrials |
Update
Real Estate |
Flash note
Real Estate |
Flash note
Real Estate |
Flash note
Shivaraman Iyer
CFO
Ziad El Chaar
CEO
Forecast net debt (US$m)
305.7
Forecast gearing ratio (%)
58
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 1.1 | 0.8 | 0.5 |
Relative | (4.0) | (9.1) | (7.3) |
52 week high/low | US$3.8/US$3.6 |
Dar Global’s first full-year results since flotation showed impressive growth driven by a range of positive factors, which bodes well for 2024 and beyond. So far it has sold 72% of launched volume, which highlights the attractions of its locations, developments and brand partners. We anticipate that Dar Global will generate a return on equity in the mid-to-high teens in the medium term, so we continue to value the company on a multiple of shareholders’ funds basis at c US$930m (US$5.17/share), implying c 40% upside.
Y/E Dec | Revenue (US$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 | 16.1 | 16.1 |
2024E | 309.4 | 72.9 | 70.4 | 35.20 | 10.6 | 10.6 |
2025E | 391.6 | 94.2 | 96.7 | 48.34 | 7.7 | 7.7 |