Last close As at 05/08/2026
USD8.13
— 0.00 (0.00%)
Market capitalisation
USD1,463m
Research: Real Estate
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.
Dar Global |
£200m Aston Martin branded residence unveiled |
New collaboration |
Construction and materials |
19 June 2024 |
Share price performance
Business description
Next events
Analyst
Dar Global is a research client of Edison Investment Research Limited |
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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.
Year end |
Revenue |
EBITDA |
EPS* |
DPS |
P/E |
P/NAV |
12/22 |
80.0 |
(6.9) |
N/A |
N/A |
N/A |
N/A |
12/23 |
360.6 |
84.8 |
0.2 |
0.0 |
15.9 |
1.4 |
12/24e |
309.4 |
72.9 |
0.4 |
0.0 |
10.5 |
1.3 |
12/25e |
391.6 |
94.2 |
0.5 |
0.0 |
7.6 |
1.1 |
Note: *EPS is normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Latest project fits well with existing portfolio
Dar Global’s collaboration with the British luxury car maker Aston Martin is the latest branded development to be announced, following other high-profile projects with well-known luxury brands, such as Lamborghini, Pagani and Missoni. It follows the same capital-light model as many of Dar Global’s other projects, with Dar Global bringing its construction and project management skills and its brand partner providing the distinctive styling that brings the project to life and supports the anticipated price premium over similar non-branded residences.
Developments follow the target client base
This latest development continues to target the expanding pool of high-net-worth individuals and ultra-high-net-worth individuals, and those who are becoming increasingly nomadic in lifestyle, benefiting from a global trend where this pool of potential buyers is becoming increasingly wealthy. By definition, these buyers tend to be cash rich and are, therefore, not affected by interest rates or affordabilityrelated lending criteria. Furthermore, this cohort has shifted more wealth from riskier equity assets towards cash, implying that the pool of money available to buy a second luxury home has increased.
Valuation: Risks pushed to the upside
We retain our valuation of Dar Global but believe this new project implies risks to the upside given that we believe the company will target a mid-to-high teens return on equity. This expected return, in our view, justifies valuing Dar Global on a multiple of 1.5x estimated shareholders’ funds. Our unchanged forecast of FY25 shareholders’ equity of US$620.5m values the group at c US$930m, versus a current market capitalisation of US$664m, implying a c 40% upside. Previous revenue and margin guidance could prove to be conservative, suggesting further upside.
‘The Astera, Interiors by Aston Martin’: A £200m project
In June, Dar Global announced its latest collaboration, this time with high-end British car maker Aston Martin. This brings the total number of Dar Global projects under development to 13, with a total gross development value of over $6bn. The new development, known as ‘The Astera, Interiors by Aston Martin’, will be an ‘exquisite’ beachfront development on Al Marjan Island, located in Ras Al Khaimah in the United Arab Emirates. This project builds on the recent opening of the Aston Martin Residences in Miami and Aston Martin’s other high-profile design collaborations in the United States and in Japan. ‘The Astera, Interiors by Aston Martin’ has a gross development value of AED900m (c £200m) and will be 16 storeys tall and contain over 250 residences.
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Exhibit 1: Image of proposed ‘The Astera, Interiors by Aston Martin’ |
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Source: Dar Global |
The project is due to be completed by December 2028 and is set on the waterfront of Al Marjan Island with its own secluded private beach. It is adjacent to the highly anticipated Wynn Resort and an hour’s drive from Dubai. It will offer one-, two- and three-bedroom apartments and threebedroom villas. In addition to the beach, the outside of the development offers an infinity pool with ocean views, a walk track, a yoga lawn and green communal spaces. Inside, there will be an indoor cinema, fitness centre, children’s play area, a spa and a multipurpose hall.
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Exhibit 2: Map of the local area |
Exhibit 3: Detailed location map |
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Source: Dar Global |
Source: Dar Global |
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Exhibit 2: Map of the local area |
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Source: Dar Global |
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Exhibit 3: Detailed location map |
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Source: Dar Global |
Exhibit 4: Financial summary
$m |
2022 |
2023 |
2024e |
2025e |
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Year end 31 December |
IFRS |
IFRS |
IFRS |
IFRS |
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INCOME STATEMENT |
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Revenue |
|
|
80.0 |
360.6 |
309.4 |
391.6 |
Cost of Sales |
(34.3) |
(214.1) |
(179.4) |
(227.1) |
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Gross Profit |
45.7 |
146.4 |
129.9 |
164.5 |
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EBITDA |
|
|
(6.9) |
84.8 |
72.9 |
94.2 |
Normalised operating profit |
|
|
(7.7) |
81.6 |
72.7 |
94.0 |
Share-based payments |
0.0 |
0.0 |
0.0 |
0.0 |
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Operating profit - Underlying |
(7.7) |
81.6 |
72.7 |
94.0 |
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IAS 19R Pension scheme expenses |
0.0 |
0.0 |
0.0 |
0.0 |
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Exceptionals |
0.0 |
0.0 |
0.0 |
0.0 |
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Impairment and acquisition related costs |
0.0 |
0.0 |
0.0 |
0.0 |
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Other |
0.0 |
0.0 |
0.0 |
0.0 |
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Reported operating profit |
(7.7) |
81.6 |
72.7 |
94.0 |
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Net Interest |
2.5 |
(0.3) |
(2.3) |
2.7 |
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Joint ventures & associates (post tax) |
0.0 |
0.0 |
0.0 |
0.0 |
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Exceptionals |
0.0 |
0.0 |
0.0 |
0.0 |
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Profit Before Tax (norm) |
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|
(5.2) |
81.2 |
70.4 |
96.7 |
Profit Before Tax (reported) |
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(5.2) |
81.2 |
70.4 |
96.7 |
Reported tax |
0.0 |
2.0 |
(7.0) |
(9.7) |
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Profit After Tax (norm) |
(5.2) |
83.2 |
63.4 |
87.0 |
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Profit After Tax (reported) |
(5.2) |
83.2 |
63.4 |
87.0 |
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Net income (reported) |
(5.2) |
83.2 |
63.4 |
87.0 |
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Basic average number of shares outstanding (m) |
N/A |
361 |
180 |
180 |
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EPS - basic normalised ($) |
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- |
0.23 |
0.35 |
0.48 |
EPS - basic reported ($) |
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- |
0.23 |
0.35 |
0.48 |
Dividend ($) |
- |
0.00 |
0.00 |
0.00 |
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Revenue growth (%) |
N/A |
350.7 |
-14.2 |
26.6 |
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Gross Margin (%) |
57.2 |
40.6 |
42.0 |
42.0 |
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EBITDA Margin (%) |
-8.6 |
23.5 |
23.6 |
24.1 |
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Normalised Operating Margin (%) |
-9.7 |
22.6 |
23.5 |
24.0 |
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BALANCE SHEET |
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Fixed Assets |
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316.9 |
246.6 |
399.6 |
502.4 |
Tangible Assets |
308.4 |
231.1 |
389.6 |
492.4 |
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Investments & other |
8.5 |
15.5 |
10.0 |
10.0 |
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Current Assets |
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241.0 |
520.7 |
816.3 |
1,192.8 |
Debtors |
40.6 |
221.9 |
324.8 |
391.6 |
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Cash & cash equivalents |
112.6 |
228.5 |
421.1 |
726.7 |
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Other |
87.8 |
70.4 |
70.4 |
74.5 |
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Current Liabilities |
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(206.8) |
(176.6) |
(561.7) |
(949.4) |
Creditors |
(30.7) |
(25.7) |
(95.9) |
(321.1) |
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Tax and social security |
(4.0) |
(6.8) |
(16.8) |
(26.8) |
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Short term borrowings |
(2.1) |
(1.2) |
(1.2) |
(1.2) |
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Advances from customers |
(94.5) |
(57.5) |
(363.1) |
(515.6) |
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Development property liabilities and other |
(75.5) |
(85.2) |
(84.6) |
(84.6) |
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Long Term Liabilities |
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(69.7) |
(125.4) |
(125.4) |
(125.4) |
Long term borrowings |
(69.7) |
(125.4) |
(125.4) |
(125.4) |
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Shareholders' equity |
|
|
281.4 |
465.4 |
528.8 |
620.5 |
CASH FLOW |
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Retained profit for year |
(4.3) |
83.2 |
63.4 |
87.0 |
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Depreciation and amortisation |
0.0 |
3.2 |
0.2 |
0.2 |
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Working capital |
(73.6) |
(107.1) |
65.9 |
155.4 |
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Exceptional & other |
11.4 |
(3.0) |
0.5 |
(1.8) |
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Net operating cash flow |
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(66.5) |
(23.7) |
130.0 |
240.8 |
Capex |
(0.7) |
(4.4) |
(4.4) |
(4.4) |
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Acquisitions/disposals |
(10.3) |
(2.8) |
(2.8) |
(2.8) |
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Net interest |
0.0 |
3.8 |
(2.3) |
2.7 |
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Equity financing |
0.0 |
72.0 |
0.0 |
0.0 |
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Other |
173.7 |
70.0 |
72.1 |
69.4 |
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Net Cash Flow |
96.3 |
114.9 |
192.6 |
305.7 |
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Opening net debt/(cash) |
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|
130.6 |
48.8 |
113.1 |
305.7 |
FX |
(176.1) |
0.0 |
0.0 |
0.0 |
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Other non-cash movements |
(2.0) |
(50.5) |
0.0 |
0.0 |
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Closing net debt/(cash) |
|
|
48.8 |
113.1 |
305.7 |
611.4 |
Source: Dar Global accounts, Edison Investment Research
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Research: Real Estate
Impact Healthcare REIT’s Q124 update showed a continuation of the positive trends that contributed to the strong FY23 performance. Rental growth is driving income and capital values, while the operational and financial performance of tenants continues to strengthen. This is reflected in a record level of rent cover. With cash flow remaining strong, the Q1 DPS increased in line with the company’s full-year target of 6.95p (+2.7%).