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9M 2024 Key Highlights
- Waha Investment recorded nine-month (9M) net profit of AED 319 million, bolstered by Waha EM Credit Fund gains and increased fee income.
- Private Investments business generated 9M net profit of AED 71 million, driven by mark-to-market gains on several portfolio assets.
- Waha Land continued to provide reliable income from increased leasing, delivering net profit of AED 25 million.
- Waha Capital was awarded ‘Private Sector Investment House of the Year – UAE 2024’ and the Waha EM Credit Fund ‘Best Emerging Market Long/Short Credit Fund’ at the Wealth and Finance Fund Awards.
Mohamed Hussain Al Nowais, Managing Partner:
Waha Capital demonstrated strong financial performance in the first nine months of the year, achieving a 26% year-on-year increase in net profit to AED 282 million. All three of our business pillars - Waha Investment, Private Investments, and Waha Land – contributed to this performance, highlighting the strategic value of our diversified business model. The company’s growth in assets under management in 2024 has been driven by third-party capital commitments of US$ 321 million, demonstrating global institutional investors’ confidence in our performance and investment strategies.
Underpinned by mark-to-market gains on portfolio assets, our Private Investments business continued to crystallise value within its portfolio and offer a source of diversification to our investors. In addition, we have made progress in maximising the potential of our real estate portfolio, with strong market interest in the Stage 2B development of Waha Land’s ALMARKAZ project. Leasing has reached 40%, underscoring the high regional demand for industrial real estate.
During the quarter, we successfully secured a new revolving credit facility with improved terms, providing the company with greater agility to capitalize on growth opportunities. Our financial position remains robust, supported by a combination of margin reduction and strategic hedging on the facility.
Looking ahead, Waha Capital will continue to provide shareholders and investors with exposure to key high-growth sectors while supporting the growth of Abu Dhabi’s non-oil economy.
Abu Dhabi – Waha Capital PJSC, an Abu Dhabi-listed investment management company (ADX: WAHA), achieved a 26% year-on-year increase in 9M net profit attributable to shareholders of AED 282 million, driven by gains in its public market funds. The company continued to harness its emerging markets expertise and superior research capabilities to navigate market volatility, delivering a return on average equity of 13.5%.
During the third quarter, the company successfully refinanced its revolving credit facility with the support of four regional banks. The new US$ 400 million facility, with enhanced terms and a 3-year tenure, is extendable to US$ 500 million and offers a maturity extension of up to two years. This refinancing enhances Waha Capital’s financial flexibility, positioning it to capture emerging growth opportunities while maintaining the prudent management of its balance sheet.
In recognition of Waha Capital’s multi-year track record of achievement, the company was named ‘Private Sector Investment House of the Year – UAE 2024’ at the Wealth and Finance Fund Awards, while the Waha EM Credit Fund was awarded ‘Best Emerging Market Long/Short Credit Fund’.
As part of Waha Capital’s CSR initiatives, the company has donated AED 1 million to the Emirates Red Crescent’s ‘UAE Stands with Lebanon’ campaign, reaffirming our commitment to social responsibility and humanitarian efforts that align with the United Nations Sustainable Development Goals (SDG), particularly SDG 1 and SDG 10.
Waha Investment Highlights
Waha Capital’s public markets business, operated by its wholly-owned asset management subsidiary Waha Investment, achieved 9M net profit of AED 319 million. The asset management business provides sophisticated investors with active management of emerging markets credit and equities funds, including distinctive investment strategies that deliver market-leading returns.
In the first nine months of 2024, Waha Investment attracted third-party capital commitments of US$ 321 million (AED 1.2 billion), which contributed to 9M fee income of AED 166 million. As of 30 September 2024, total third-party assets under management were AED 6.6 billion, surpassing 50% of the company’s total assets under management. This third-party capital is well-diversified across regional and global clients, including sovereign wealth funds, pension funds, insurance companies, private banks, family offices, and high-net-worth individuals.
Significantly outperforming its benchmark, the Waha Emerging Markets Credit Fund, which employs long-short strategies in emerging markets fixed income, delivered a year-to-date (YTD) net return of 15.9%, almost double the reference JPMorgan EMBI Global Diversified Index’s 8.6% return. Since its inception in 2012, the fund has achieved a cumulative return of 253.2%, compared to 65.9% for the reference index.
The Waha MENA Equity Fund has achieved a cumulative net return of 375.3% since its inception in 2014, significantly outperforming its benchmark, which posted a return of 79.6% in the same period. Despite heightened regional market volatility, the fund’s Q3 2024 performance improved sequentially compared to the previous quarter. In Q3 2024, the fund saw a quarterly gain of 4.1% reversing a -4.0% loss in Q2 2024, bringing its net return in the first nine months of the year to 0.3% compared to the reference S&P Pan Arab Composite Index’s 5.1% return over the same period.
Meanwhile, the Waha Islamic Income Fund, which focuses on global sukuk and Shari’ah-compliant equities, posted a YTD total return of 8.0% (gross of fees), compared to a 5.3% increase for its reference, the Dow Jones Sukuk Index. Since its launch in 2020, the fund has recorded a cumulative return of 36.6% (gross of fees), outperforming the reference index’s 5.4% return.
Private Investments Highlights
The Private Investments business, which pursues a growth-focused multi-asset investment approach with the flexibility to deploy capital across diverse sectors and geographies, recorded 9M total income of AED 71 million, compared to a loss of AED 3 million in the same period last year. The performance demonstrates the strength of Waha Capital’s diversified investment strategy and was predominantly driven by mark-to-market gains on certain portfolio assets.
The business has successfully monetised AED 294 million in mature assets this year, reinforcing the company’s position as an agile investor and ensuring it is well-positioned to capitalise on new opportunities that will drive future growth.
As of 30 September 2024, the Private Investments business manages AED 671 million in assets, with the team actively evaluating a robust deal pipeline while also prioritising the monetisation of other mature assets.
Waha Land Highlights
Waha Land, a wholly owned subsidiary of Waha Capital that owns and operates a light industrial real estate development in Abu Dhabi, recorded 9M net profit of AED 25 million, representing growth of 19% versus the same period last year.
Stages 1 and 2A of the ALMARKAZ project are almost fully occupied, enjoying a 98% occupancy rate across 182,500 square meters of versatile industrial and logistics units. The latest stage of expansion, Stage 2B, was completed in Q1 2024, adding premium leasable space to the portfolio. Leasing activity for Stage 2B is progressing steadily, with current occupancy reaching approximately 40% of the completed 76,000 square meters.
Waha Land continues to explore various options for the ALMARKAZ project, including the potential monetisation of completed assets. This strategic consideration comes at a time when the UAE’s increasingly diversified economy and growing intra-regional trade are driving demand for high-quality logistics facilities.
About Waha Capital
Waha Capital is an Abu Dhabi-listed investment management company that leverages its emerging markets expertise, business networks and research capabilities to deliver attractive returns to shareholders and investors in its funds.
Founded in 1997, Waha Capital is one of the Emirate’s leading private sector investment houses, providing a world-class platform for investment and growth. The company has a long-established track record of investing in public and private markets, deploying proprietary capital in alignment with third-party investors.
The Public Markets business (operated by Waha Investment PrJSC, a wholly owned subsidiary) offers sophisticated investors actively managed emerging markets credit and equities funds, via a disciplined approach to investment and implementing distinctive strategies to deliver consistent market-leading returns.
The Private Investments business pursues a multi-asset investment approach focused on direct investments, with the flexibility to deploy capital across diverse sectors and geographies. The business leverages extensive international business networks to source deals and form co-investment partnerships.
The Waha Land business develops and leases industrial and logistics facilities at ALMARKAZ in Abu Dhabi's Al Dhafra region, strategically leveraging the UAE’s expanding industrial infrastructure, to grow its institutional-grade assets and contribute to portfolio diversification and long-term value creation.
Counting Mubadala Investment Company as an anchor shareholder, Waha Capital is at the forefront of Abu Dhabi’s increasingly dynamic and entrepreneurial ecosystem, creating long-term value for shareholders, fund investors, employees, and communities.
Abu Dhabi Securities Exchange ticker: WAHA
wahacapital.com
Further Information for Media and Investors
For further information on Waha Capital and its investment capabilities, please visit wahacapital.com
| For media enquiries, please contact: Ameera Khalid Executive Director, Waha Capital E-mail: communications@wahacapital.ae | For investment enquiries, please contact: Maher Mansour Head of Investor Relations & External Communications Waha Capital E-mail: investor.relations@wahacapital.ae |
- Based on prior four quarters’ investment return.
- As of 30 September 2024, including assets managed on behalf of third parties across all businesses.
- Based on prior four quarters’ contribution to Waha Capital shareholders.
- Based on prior four quarters’ contribution to all shareholders, including minorities.
