Al Dar Properties · ADX:ALDAR
Al Dar Properties — Investor Presentation (November 2017)
30 slides from Al Dar Properties's investor presentation, November 2017
Slide 1: Investor Presentation November 2017
INVESTOR PRESENTATION NOVEMBER 2017
Slide 2: Disclaimer
DISCLAIMER This disclaimer governs the use of this presentation. You must not rely on the information in the presentations and alternatively we recommend you to seek advice from an appropriately qualified professional. If you have any specific questions about any matter in this presentation you shou
Slide 3: Aldar at a Glance
ALDAR AT A GLANCE • Leading Abu Dhabi developer behind the Emirate’s most iconic and complex projects 23,000 residential AED 17.7¹ billion • Ferrari World, Yas Marina F1 circuit, World Trade units delivered to market cap Centre, The Gate Towers, Yas Island, Al Raha Beach date and Shams Abu Dhabi inf
Slide 4: Business Overview
BUSINESS OVERVIEW Adjacent Developer Asset Manager businesses Education 75 million sqm 1,500 unit off- AED 18 billion AED 1.6 billion (Aldar land bank plan launch cycle assets NOI (2017E) Academies) Features Property and Target 40% Focus on key 6.1 million Diverse revenue facilities growth in NOI by
Slide 5: Execution of Strategy
EXECUTION OF STRATEGY Maximise ✓ NOI growth from AED 0.7bn in 2013 value of to AED 1.6bn 2016 recurring ✓ AED 18 billion asset valuation revenue ✓ Investment growth plan committed assets ✓ 10 developments launched into key segments ✓ 5,000 units launched into off-plan sales market ✓ 1,500 unit annua
Slide 6: Key Messages
KEY MESSAGES Strong development business • 1,500 units per year launch guidance – AED 3 billion sales value target in 2017 (AED 2.4 billion YTD) • Destination development around Yas Island, Shams Abu Dhabi and Al Raha Beach • Tapping into market demand – high quality, mid-market residential High qua
Slide 7: Abu Dhabi Macro Overview
ABU DHABI MACRO OVERVIEW • Strong ‘AA’ rated economy • Net assets 282% of GDP – one of the highest globally1 • GDP per capita $75k2 • Government debt 3.6% of GDP1 • C.6% of global oil reserves • Low oil prices driving fiscal reform and operational efficiency • Increased non-oil net revenues from rem
Slide 8: Q3 2017 Real Estate Market Overview
Q3 2017 REAL ESTATE MARKET OVERVIEW “Q3 saw a further decline in residential and hospitality performance due to the continued reduction in government spending and sentiment. While headline rents in prime retail and office projects remained relatively stable, both these sectors have moved further in
Slide 9: Development Overview
DEVELOPMENT OVERVIEW Where we stand today • 10 major projects at various stages of development 10 current 5,000 units • 5,000 units currently launched to market to date projects launched • AED 4.1 billion revenue backlog as at 30 Sep 2017 • 2017 development focus on mid-market - 2 development launch
Slide 10: Destination Development – Yas Island
DESTINATION DEVELOPMENT – YAS ISLAND Growing local population Yas Acres • Aldar currently has 5,000 units under development on Yas Island (including development-to-hold) • Drive location population in near-term – Ansam handing over in December 2017 NWQ Warner Bros Government – enabling key tourism W
Slide 11: Asset Management Overview
ASSET MANAGEMENT OVERVIEW Diverse NOI contribution (2016FY split) Large and diverse asset base • AED 18 billion asset value across retail, residential, office and hotels • Diverse NOI contribution • Strong occupancy performance across asset classes Residential Retail Office, hotels and other Committ
Slide 12: Asset Management Performance
ASSET MANAGEMENT PERFORMANCE 470,00 4,800 204,000 2,500 sqm GLA across 25 Residential units sqm GLA across 7 hotel key rooms retail assets across 10 office assets across 9 hotels developments 93% 91% 92% 76% Yas Mall 30 Sep 2017 30 Sep 2017 2017 YTD average trading occupancy occupancy occupancy occu
Slide 13: Investment Plan Fully Committed
INVESTMENT PLAN FULLY COMMITTED • Investment plan including 8 assets across residential, retail, office, hotels and schools • Acquisition of office building under way – SPA signed • Continue to monitor opportunities in the market Al Mamoura school, opened in Sep 2016 Investment split by asset class
Slide 14: Capital Structure
CAPITAL STRUCTURE Debt policy • Operating in line with debt policy to maintain 35-40% LTV against the 100% owned investment properties and operating businesses • AED 5.5 billion gross debt as at 30 Sep 17 – no further significant pay down of debt expected • Debt capacity will grow as we build out re
Slide 15: Dividend Policy
DIVIDEND POLICY Asset management Development business business Pay-out factor Distributable free cash flow ¹ Realised profit Policy Range 65-80% Discretionary Methodology/ key drivers Net operating income Less: Interest expense + Upon completion of Ansam, Al Hadeel, Al Nareel, Al Merief, Meera, Maya
Slide 16: Focus on Shareholder Return
FOCUS ON SHAREHOLDER RETURN • Progressive dividend over last five years, supported by growth and stabilization of recurring revenues • Formalised dividend policy provides clear and transparent shareholder returns • 2016 proposed dividend of 11 fils per share • Top-end of distributable free cash flow
Slide 17: Summary
SUMMARY Strong development business • 1,500 units per year launch guidance – AED 3 billion sales value target in 2017 (AED 2.4 billion YTD) • Destination development around Yas Island, Shams Abu Dhabi and Al Raha Beach • Tapping into market demand – high quality, mid-market residential High quality,
Slide 18: Appendix
APPENDIX ALL RIGHTS RESERVED
Slide 19: Development Summary Table – 30 Sep 17
DEVELOPMENT SUMMARY TABLE – 30 SEP 17 Project Location Recognition Launch Q3 2017 Total as at 30 Sep 2017 * Expected date Sold Sold unit Sold Sold unit Units % sold Revenue Revenue Revenue completion units ¹ sales value units ¹ sales value launched recognition recognised backlog (AEDm) ¹ (AEDm) ¹ %
Slide 20: Financial Statements – Profit and Loss
FINANCIAL STATEMENTS – PROFIT AND LOSS Q-o-Q Y-o-Y 2017 2016 AED millions Q3 2017 Q3 2016 YTD YTD NB: Q3 2016 included a Revenues 1,380 1,899 4,312 4,827 significant Al Raha Direct costs (792) (1,016) (2,429) (2,710) Beach land transaction Gross profit 588 883 1,882 2,117 Gross profit Margin 43% 46%
Slide 21: Financial Statements – Balance Sheet
FINANCIAL STATEMENTS – BALANCE SHEET Q-o-Q As at As at AED millions 30 Sep 2017 30 Jun 2017 Property, plant and equipment 2,891 2,909 Investment properties 15,844 15,829 Development work in progress 1,502 1,470 Inventory 2,560 2,512 Receivables 5,847 5,279 Cash 5,500 5,944 Other Assets 1,088 1,084 T
Slide 22: Government Transactions
GOVERNMENT TRANSACTIONS Remaining Remaining cash inflows P&L events Transaction (AEDm) Q4 2017 2018 Total Other income Sale of F1 Race Track 348 - 348 - Sale of Al Raha Beach Land ¹ 95³ 570 665 - Shams Infrastructure Reimbursement ² 5³ 295 300 222 448 865 1,313 222 Infrastructure recoverables 213³ 2
Slide 23: Quarterly Segmental Analysis
QUARTERLY SEGMENTAL ANALYSIS Q3 2017 recurring revenues of AED 665 million (Q3 2016: AED 704 million, Q2 2017: AED 666 million) ¹ 982 Q3 2017 Segmental Revenue Performance AED Millions 493 416 427 419 429 352 334 360 92 107 101 22 23 27 41 5 5 Investment Properties Hospitality & Leisure Operative Vi
Slide 24: Year-to-Date Segmental Analysis
YEAR-TO-DATE SEGMENTAL ANALYSIS 2017 YTD recurring revenues of AED 2,054 million (2016 YTD: AED 2,160 million) ¹ 2,045 2017 YTD Segmental Revenue Performance AED Millions 1,456 1,263 1,293 1,131 945 323 365 88 124 91 14 Investment Properties Hospitality & Leisure Operative Villages Adjacent Business
Slide 25: Business Overview
BUSINESS OVERVIEW Development Asset management Adjacent Businesses Property Development Retail Schools • Current projects – Ansam, Hadeel, • 470,000 sqm GLA across 27 assets • Aldar Academies – 100% owned Nareel, Merief, Meera, Mayan, Yas Residential Property & Facilities Management Acres, The Bridg
Slide 26: Residential Portfolio
RESIDENTIAL PORTFOLIO • 4,800 units across 10 developments • 30 Sep 2017 occupancy at 91% • 36% of units on bulk deals • ‘Flight to quality’ remains true – tenants want newer units with better facilities Units split by type Al Rayyana – 1,537 residential units, 100% owned 7% 30% 19% 12% 32% 1-bed 2-
Slide 27: Retail Portfolio
RETAIL PORTFOLIO • Retail strategy to own the local convenience store and destination mall • 470,000 sqm GLA across 25 assets • GLA split between super-regional, big box, community retail and community malls • Reinvesting into existing asset to improve consumer experience • Yas Mall 93% trading occu
Slide 28: Office Portfolio
OFFICE PORTFOLIO • 204,000 sqm GLA across 7 assets • 92% occupancy across portfolio as at 30 Sep 2017 • 77% GLA leased to Government or GRE Baniyas Towers – 43,000 sqm GLA Tenant mix Remaining lease maturity 5% 17% 19% 45% 32% 60% 21% Government GRE Corporate Vacant 0-3 years 3-5 years Over 5 years
Slide 29: Hotel Portfolio
HOTEL PORTFOLIO • 2,536 keys across 9 hotels • Portfolio 2017 YTD occupancy outperforms the market - 76% versus 68% (ADTCA) • 90% hotel keys located on Yas Island Viceroy hotel, Yas Island Keys split by type Keys split by location 13% 5% 20% 5% 18% 90% 49% 5-star 4-star 3-star Serviced apartments Ya
Slide 30: Investor Relations Contact
INVESTOR RELATIONS CONTACT Chris Wilson Head of Investor Relations T: +971 2 810 5624 M: +971 56 446 0501 E: cwilson@aldar.com
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