Key highlights for financial year 2022
- Public Markets business generated net profit of AED 425 million in 2022, with flagship equity and credit funds outperforming benchmarks amidst challenging global market conditions
- Private Investments business recorded net profit of AED 150 million in 2022 through returns from its Global Opportunities investment strategy and the monetisation of mature assets
- Waha Land reported net profit of AED 35 million, with the sale of ALMARKAZ light industrial assets scheduled to complete in 2023
Waha Capital PJSC, an Abu Dhabi-listed investment management company (ADX: WAHA), reported net profit of AED 449 million for 2022 — equating to a return on average equity of 10.1%.
Abu Dhabi, 10 February 2023 - Despite challenging global macroeconomic and capital market conditions, Waha Capital delivered strong financial and operational performance. Full-year revenue stood at AED 720 million, while operating expenses were AED 174 million.
Waha Capital performed strongly in the fourth quarter, with net profit increasing 23% year-on-year to AED 190 million due to robust returns from the company’s public equity and credit funds and gains derived from monetising mature assets.
Waha Capital’s total assets under management stood at AED 6.54 billion at the end of 31 December 2022, an increase of 12% from the AED 5.84 billion recorded at the end of 2021.
In 2022, the company was recognised by Forbes Middle East as one of the region’s “Top 30 Asset Management Companies” for the second consecutive year, the Waha MENA Equity Fund was named “Best Emerging Markets Equity Fund” at the EuroHedge Awards, and the Waha Islamic Income Fund was awarded “Best Sukuk/Islamic Fund” at the MEA Finance Awards.
The Company’s board recommends a cash dividend of 8 fils per share. This recommendation remains subject to regulatory and shareholder approvals at the Company’s Annual General Meeting.
Public Markets Highlights
The Public Markets business recorded total revenue of AED 496 million and net profit of AED 425 million in 2022, with the company’s flagship funds continuing to outperform their respective benchmarks during a year characterised by heightened volatility in global markets.
The Waha MENA Equity Fund achieved a total return of 12.8% in 2022, compared to -5.7% for its reference S&P Pan Arab Composite Index. The Fund has delivered a cumulative return of 281.4% since its inception in 2014, versus a benchmark return of 54.5%, and was recognised among the Top 50 hedge funds globally, ranking 15th in the Global Investment Report 2022.
The Waha CEEMEA Credit Fund recorded a total return of 1.8% in 2022, significantly outperforming the reference JPMorgan CEEMEA CEMB Index, which produced a total return of -24.8% during a turbulent year for emerging economies’ credit markets. The Fund has delivered a cumulative return of 178.5% since its inception in 2012 compared to 37.5% for the reference index.
The Waha Islamic Income Fund delivered a total return of 0.5% in 2022, compared to a performance of -7.8% 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 15% since its inception in 2020.
Private Investments Highlights
The Private Investments business recorded net profit of AED 150 million in 2022 following a net loss of AED 98 million in 2021. All three portfolios under the Private Investments business were profitable and contributed to its strong performance in 2022.
The Private Investments business continued to deploy capital through its Global Opportunities strategy, with the portfolio’s assets under management reaching AED 528 million as of 31 December 2022. The portfolio generated a 10.0% return in 2022, its first full year of operation.
In 2022, the business sold its stake in Anglo Arabian Healthcare and launched the new Waha Health platform, which was seeded with two premium healthcare assets, HealthBay and Orchid Fertility IVF.
The Private Investments team also initiated a multi-year strategy to derive value from mature assets. Divestments and gains realised in 2022 included: Waha Capital’s holding in Bahrain-based ADDAX Bank, its US Securities portfolio, its stake in London-listed SDX Energy, and some of its holding in FinTech firm Optasia (formerly Channel VAS Investments limited). This active portfolio management strategy resulted in AED 284 million of cash inflows in 2022.
Waha Land Highlights
Waha Land, a wholly-owned subsidiary that develops, owns, and operates light industrial real estate assets, recorded net profit of AED 35 million in 2022.
In August 2022, Waha Land agreed to sell 17 leased warehouse buildings at the ALMARKAZ Industrial Development in Abu Dhabi to Peninsula Real Estate Management Limited for AED 555 million. The all-cash transaction is expected to close in 2023.
Waha Land is continuing to focus on developing, leasing, and monetising assets at ALMARKAZ, with Peninsula having already agreed to acquire an additional 136,000 sq.m of completed and income producing industrial properties that Waha Land is currently developing, with leasing expected to commence once construction is completed.
Waleed Al Mokarrab Al Muhairi, Chairman: "Waha Capital performed strongly in 2022, generating net profit of AED 449 million and a return on average equity of 10.1%. This is a result of the company’s ability to successfully navigate significant geopolitical instability and macroeconomic headwinds.
Despite the challenging market conditions, Waha Capital made excellent progress towards its long-term objectives in 2022, and the core businesses are now well-positioned for future success. The Public Markets business has maintained the exceptional track record of its flagship funds, while the Private Investments business successfully monetised mature assets and developed its pipeline of high-growth opportunities in favourable sectors. In addition, Waha Capital continued to attract third-party capital from institutional investors, with assets under management increasing by AED 696 million to total AED 6.54 billion by the end of the year.
In 2023, Waha Capital will continue to operate pragmatically, leveraging its knowledge and network to deliver the growth and attractive returns that shareholders and investors have come to expect."
Ahmed Khalifa Al Mansoori, Chief Operating Officer of Waha Capital: "Waha Capital demonstrated its resilience in 2022, particularly in the fourth quarter, in which net profit increased 23% year-on-year to AED 190 million.
In 2022, our Public Markets business delivered net profit of AED 425 million as its flagship equity and credit funds upheld their high standards, outperforming industry benchmarks. Through the effective deployment of capital in its Global Opportunities strategy and by crystalising value through the divestment of mature assets, the Private Investments business recorded net profit of AED 150 million in 2022. Waha Land successfully entered into a high-value transaction and reported a healthy net profit of AED 35 million for the year.
Despite the global inflationary environment, the company managed costs effectively in 2022 and will continue to reduce its leverage to mitigate a higher rate environment. As a leading asset manager, Waha Capital is committed to creating significant long-term shareholder value by continuing to develop and evolve its strategy and proposition for investors."