TPL Properties : Corporate Briefing Session (CBS) REVISED

Pakistan's leading Real Estate Development

and Fund Management Company

Analyst Briefing

9th March 2023

TPL Corp

Diversified Group, seeking to redefine & lead in its markets, incl. Insurance, Real Estate
General	`
TPL Holding
Public
38%	62%

64%

100%

55%

97%

40%

100%

16% 18%

TPL Trakker

TPL Security

TPL Insurance

TPL Life

TPL Properties

TPL e-Ventures

100%	100%
TPL Maps	Trakker ME
(Singapore)	(UAE)

4 Listed on the PSX

PKR 15 Bn+ Market Cap

Presence in GCC Region

PKR 32.2 Bn AUM (REIT)

1400+ Employees

2

TPL Properties

Pioneer in Institutionalizing Real Estate in Pakistan

`

2007-13

• Secured Foreign Currency Financing USD 20 Mn (2011)
• Centrepoint Office Tower (2013) - 350,000 sq.ft across 28 floors

2014-16

• 100% tenancy achieved (2014)
• OPIC (now DFC) facility prepaid

 Listed on PSX

• Pre-IPOplacement

2017-21

• Acquisition of HKC Ltd (2017)
• RMC Incorporated
• Exited Centerpoint - Sold to BAHL
• Acquired land for Technology Park + 40 Acres for mixed-use development (Mangrove)

2022-23

• REIT Fund I - PKR 18.35 Bn (largest equity offering in Pakistan)
• Established Pakistan's first ADGM based
  International Fund Manager
• Shariah Compliant
• Strategic Partnership with TASC Towers & acquisition in process for 10,500 Towers

39%

100%

100%	90%	100%	100%
Technology Park	One Hoshang	Mangrove

100%

100%

Developer

Property

Manager

REIT Manager

Fund Manager

(ADGM)

3

TPL Properties

Multi Faceted Real Estate Holding Company

`

TPL Properties (PSX: TPLP): restructured from single yielding asset, to a multi-dimensional real estate company

Real Estate Owner

Restructured as Real Estate

Investment Holding Company

Revenue

• TPL REIT Fund I
• TPL RMC (& TPL IMC)
• Other Investments Opex
• Payroll
• G&A

Value

• Market Cap : PKR 8.4 Bn
• Book Equity : PKR 15.3 Bn
• DCF Valuation : PKR [ ] Bn

Developer

Projects assessment, design, regulatory clearance, construction and marketing & sales

Revenue

• Developer margin
• Developer success fees

Opex

• Payroll
• G&A

Value

• High margin as scale increases

REIT Manager

Managing TPL REIT Fund I (PKR 18 Bn Fund per first close) and will take on creation and management of other Funds

Revenue

• Annual Management Fee
• Listing fees @ IPO
• Carry or Performance Fee Opex
• Payroll
• G&A

Value

• High margin as scale increases

Offshore Manager

ADGM (UAE) licensed 3-C Manager, that is creating feeder funds for Pakistan REITs and also Regional REITs

Revenue

• Annual Management Fee
• Carry or Performance Fee

Opex

• Payroll
• G&A

Value

• High margin as scale increases

Property Manager

Facility management of 3rd party real estate assets on a cost plus basis

Revenue

• Facility Management Fee on cost plus basis (profit and shared resource fee)

Opex

• N/A

Value

• Increasing contribution as scale increases

Market Cap as at Mar 06, 2023

4

Book equity as at Dec 31, 2023

TPL Properties Limited - Standalone Results

P&L for the period ended December 31, 2022 `

Description	YTD-Dec 22	YTD-Dec 21	Variance
	[PKR 000s]	[PKR 000s]	[PKR 000s]	[%]
Revenue	5,037,350	23,902	5,013,448	20975%
Total Revenue	5,037,350	23,902	5,013,448	20975%
Direct operating costs	-	(61)	61	100%
Gross profit	5,037,350	23,841	5,013,509	21029%
Administrative expenses	(226,073)	(140,983)	(85,090)	-60%
Operating Profit / (Loss)	4,811,277	(117,142)	4,928,419	NM
Finance costs	(62,087)	(74,101)	12,014	16%
Other Income	64,655	120,555	(55,899)	-46%
Profit / (Loss) before taxation	4,813,845	(70,688)	4,884,534	NM
Taxation	(12,031)	(1,534)	(10,497)	-684%
Profit / (Loss) for the period	4,801,814	(72,223)	4,874,037	NM
EPS	9.08	(0.18)

Revenue:

• Revenue comprises of realized gain on sale of TTZ (PKR 875 Mn) and revaluation gain on units of TPL REIT Fund I (PKR 4,162 Mn), driven by the increase in valuation of the underlying real estate assets

Expenses:

• Increase is mainly due to legal expenses from the one-time costs related to increase in Authorized Capital and Bonus share issuance
• Other components, apart payroll, include office rent, travel, depreciation, operating leases and CSR

Finance Cost & Other Income:

• Finance cost due to PKR 500 Mn term loan
• Other income reflects finance income from investment in TFCs

NM: Not Meaningful

5