2024 Feb 13
Abu Dhabi, 13 February 2024 – Waha Capital PJSC, an Abu Dhabi-listed investment management company (ADX: WAHA), has reported a 28% increase in net profit attributable to shareholders of AED 440 million in 2023, driven by the strong performance of its asset management business.
The company’s revenues increased 70% to AED 1.2 billion in 2023, from AED 720 million a year earlier, as key flagship funds produced benchmark-beating returns and delivered higher fee income. The company’s net profit of AED 440 million in 2023 translates to a return on average equity of 12.1%.
In the fourth quarter, Waha Capital’s net profit increased 39% year-on-year to AED 218 million. Quarterly operating income increased 94% to AED 543 million versus AED 280 million in the fourth quarter of 2022.
The company’s total assets under management stood at AED 10.5 billion as of 31 December 2023, an increase of 60% from AED 6.5 billion at the end of 2022, primarily attributable to AED 3.1 billion in third-party capital raised during the year.
In 2023, the Waha EM Credit Fund was awarded the “Best Absolute Return Long/Short Emerging Markets Credit Fund” Award at the Wealth & Finance International Fund Awards 2023, while the Waha MENA Equity Fund was ranked in the top 10 hedge funds globally by the Global Investment Report for the fifth consecutive year. In 2023, Waha Capital also demonstrated its commitment to sustainability by becoming a signatory of the ADGM Abu Dhabi Sustainable Finance Declaration.
The company’s board recommends a cash dividend of 10 fils per share, which includes a 1.5 fils per share special dividend. This recommendation remains subject to regulatory and shareholder approvals at the Company’s Annual General Meeting.
Waha Capital’s public markets division, operated by Waha Investment, the wholly-owned asset management subsidiary of the company, recorded net profit of AED 639 million in 2023, an increase of 138% from AED 268 million in 2022. Following the inflow of AED 3.1 billion of third-party capital, Waha Investment’s total assets under management increased to AED 8.8 billion from AED 4.8 billion a year earlier. Segregated third-party capital accounts are gaining traction, reaching AED 2.65 billion at the end of 2023.
The Waha Emerging Markets Credit Fund, which pursues diverse long-short strategies in emerging markets fixed income, recorded a net return of 9.5% in 2023 versus the reference JPMorgan EMBI Global Diversified Index, which produced a total return of 11.1%. The Fund has delivered a cumulative return of 204.8% since its inception in 2012 compared to 52.7% for the reference index.
The Waha Islamic Income Fund delivered a total return of 9.93% (gross of fees) in 2023, compared to a performance of 5.53% by the reference Dow Jones Sukuk Index. The Fund, which mainly invests in global sukuk and Shari’ah-compliant equities, has recorded a cumulative return of 26.47% (gross of fees) since its inception in 2020, compared to 0.19% for the reference index.
In 2023, the Private Investments business prudently assessed a robust deal pipeline through its fully flexible Global Opportunities multi-asset investment strategy, with the portfolio’s assets under management standing at AED 441 million as of 31 December 2023.
Waha Capital’s Core Portfolio of private investments, which includes the Waha Health platform, has made progress with the implementation of its growth strategy. The Core Portfolio was valued at AED 52 million as of 31 December 2023.
Meanwhile, the Private Investments team continues to prioritise divestment options to monetise mature assets in the Legacy Portfolio in order to maximise shareholder value. The portfolio was valued at AED 383 million as of 31 December 2023.
Waha Land, a wholly owned subsidiary of Waha Capital that owns and operates a light industrial real estate development in Abu Dhabi, recorded net profit of AED 44 million in 2023 compared to net profit of AED 35 million in 2022. The business, with occupancy levels nearly at full capacity for its developed property, provides steady rental income streams while developing high-quality logistics real estate at the prime ALMARKAZ project.
Waleed Al Mokarrab Al Muhairi, Chairman: "Waha Capital generated strong returns in 2023, generating net profit attributable to shareholders of AED 440 million and a return on average equity of 12.1%. This performance reflects the company’s ability to skilfully navigate global markets in a year marked by heightened geopolitical tensions and macroeconomic challenges.
Throughout 2023, the company made significant progress toward its long-term objectives, with its core businesses well-positioned to capitalise on opportunities that may emerge in 2024. Waha Investment has maintained the track record of its flagship funds, attracting AED 3.1 billion in third-party capital from international institutional investors. Meanwhile, the Private Investments business has demonstrated its resilience and prudently managed its portfolio assets while Waha Land continued to deliver consistent rental income. The company’s total assets under management increased by AED 4.0 billion to total AED 10.5 billion by the end of the year.
In 2024, Waha Capital will maintain its pragmatic and opportunistic approach, leveraging its considerable expertise and network to deliver attractive returns to shareholders and investors."
Mohamed Hussain Al Nowais, Managing Director of Waha Capital: "In my first financial year as Managing Director, Waha Capital achieved 70% year-on-year growth in total income to AED 1.2 billion. This robust performance translated into a 28% year-on-year increase in net profit of AED 440 million for shareholders.
In a year when emerging markets underperformed, Waha Investment delivered net profit of AED 639 million, an increase of 138% from 2022. Having attracted substantial third-party mandates, assets under management increased to AED 8.8 billion from AED 4.8 billion a year earlier.
The Private Investments business maintained its commitment to overseeing and expanding existing assets while pragmatically deploying capital through a healthy deal pipeline. Meanwhile, Waha Land achieved nearly full occupancy for its built assets and remained on track regarding the expansion of ALMARKAZ.
In 2023, Waha Capital demonstrated that its resilient business model and nuanced investment strategies could weather turbulence in a challenging global environment. In 2024, Waha Capital is committed to sustaining this momentum and further enhancing shareholder value."
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