Waha Capital Reports H1’21 Net Profit Of Dh265 Mn On Strong Performance By Its Public Markets Funds

• Public Markets net income of AED 320 mn as emerging market credit and equity funds continue to deliver strong returns
• Private Investments net income of AED 34 mn driven by contributions from Waha Land, Despegar and U.S. equities portfolio
• Disciplined cost management drives improvement in cost-to-income ratio to 26%

Notes:

(1): Based on prior four quarters investment return

(2): As at 30th June 2021, including assets managed on behalf of third parties

(3): Based on prior four quarters contribution to Waha Capital shareholders

(4): Based on prior four quarters contribution to all shareholders, including minorities

“Waha Capital has successfully navigated the diverse challenges presented by the pandemic over the last 18 months, including widespread economic disruption as well as volatility in global capital markets and in oil prices. The positive financial performance in the first half of the year and a robust balance sheet provide solid foundations for the company as it embarks on its next phase of growth. The Executive Management team, with the full backing of the Board, is taking a rigorous approach to implementation of a strategy to develop further depth and scale in both the funds management business and the private investments business. Our objective is clear: to deliver continuous value creation to shareholders within a world class governance framework.”

“Our strong first-half results are testament to the capacity of Waha Capital to deliver stable and sustained financial performance through economic and market cycles. The Public Markets business has grown into a significant emerging markets money manager, with assets under management of over US$ 1 billion, and our funds have continued to provide attractive returns to Waha Capital and third-party investors. The Private Investments portfolio remains resilient, and we continue to assess opportunities to recycle capital selectively into new areas of growth. As the global operating environment gradually improves, Waha Capital is well positioned to deliver on its clear strategy for further growth.” 

ABU DHABI, 10 August 2021 – Waha Capital PJSC, a leading investment company in Abu Dhabi, has reported a strong increase in first-half net profit, driven by returns delivered by its public markets funds management business.

The company recorded a net profit of AED 265 million in the first half of 2021, compared to a net loss of AED 27 million in the same period of 2020. In the second quarter, net profit was AED 154 million, a 39% increase sequentially and 42% lower than a year earlier. Meanwhile, the company continued its disciplined approach to enhancing efficiencies, with the cost to income ratio for the first half improving to 26% from 31% a year earlier.

The Public Markets business, which manages emerging markets credit and equity funds, delivered healthy returns on proprietary investment made by Waha Capital as well as fee income from third-party investors.  The business reported net income of AED 320 million during the first half of the year. The Private Investments business produced net income of AED 34 million during the period from its diversified portfolio of global assets, which include exposure to healthcare, industrial real estate, energy, travel, and U.S. equities.

PUBLIC MARKETS HIGHLIGHTS 

Waha Capital’s emerging markets funds have built an industry-leading multi-year track record of outperformance, successfully navigating market volatility and global business cycles. During the second quarter, the business reached the significant milestone of US$1 billion of assets under management (AUM) and was ranked by Forbes Middle East as a top 30 investment manager in the region.   

The Waha CEEMEA Credit Fund provided investors with a total return of 6.7% in the first half of 2021, contributing to a cumulative return of 172.5% since inception in 2012, which is equivalent to an annualised rate of return of 11.1%. The fund’s trailing total return (12 months to end-June 2021) was 16.9%. 

The Waha MENA Equity Fund provided a total return of 14.9% in the first half, bringing the cumulative return to 192.2% since inception in 2014, which is equivalent to an annualised rate of return of 15.4%.  The fund’s trailing total return (12 months to end-June 2021) was 35.1 %. 

The Waha Islamic Income Fund, which invests in Shari’a compliant assets across sukuk and equity markets, produced a total return of 5.0% in the first half, bringing the investment return since inception to 9.6%. 

PRIVATE INVESTMENTS HIGHLIGHTS 

Waha Capital’s Private Investments portfolio continued to provide diversification benefits with a meaningful contribution to the company’s net income. 

The business is entering its next phase of growth through a strategy to selectively re-channel capital into new growth opportunities. In line with this strategy, Waha Capital divested a portion of its holding in Nasdaq-listed National Energy Services Reunited Corp (NESR) through a series of open market transactions during the first half of 2021. 

Meanwhile, Waha Land continued to generate steady income, driven by a 95% occupancy rate at its Almarkaz industrial real estate development in Abu Dhabi. Latin America-focused travel firm Despegar and Waha Capital’s U.S. securities portfolio also contributed positive returns for Waha Capital during the first half of the year. 

ABOUT WAHA CAPITAL 

Waha Capital is an Abu Dhabi-listed investment management company with a diversified and balanced portfolio of local and international assets that delivers sustainable income and long-term value creation to its stakeholders. The company operates in a wide variety of sectors that include public securities and credit markets, healthcare, industrial real estate, infrastructure, energy, financial services, travel and fintech.

Through its Public Markets business, the company deploys highly specialised capabilities in managing global and regional credit and equity funds and has a proven track record of outperformance in this area. Its Private Investments unit has a successful approach to deploying capital across numerous sectors and geographies, growing the value of its investments and monetising them when appropriate. 

Though managing investments on an increasingly international footprint, Waha Capital remains deeply rooted in Abu Dhabi’s economy. Its management team has extensive experience operating in international markets, and its diverse shareholder base includes Mubadala Investment Company and other prominent UAE investors. The company is committed to developing promising UAE nationals and to creating a culture where talent can grow professionally and personally to make a real and lasting impact on Waha Capital’s success and on society at large.