Al Dar Properties · ADX:ALDAR
Al Dar Properties — Q3 2022 Earnings Presentation
38 slides from Al Dar Properties's earnings presentation, Oct 27, 2022
Slide 1: Q3 2022 Results Presentation
Q3 2022 RESULTS PRESENTATION QUARTER ENDED 30 SEPTEMBER 2022 27 OCTOBER 2022
Slide 2: Agenda
AGENDA 1 Q3 2022 Highlights 2 Aldar Value Proposition 3 Q3 2022 Results Summary 4 Aldar Development 5 Aldar Investment 6 Appendix INVESTOR PRESENTATION Q3 2022 2
Slide 3: Q3 2022 Highlights
Q3 2022 HIGHLIGHTS INVESTOR PRESENTATION Q3 2022 3
Slide 4: Group Performance Highlights Q3 2022
GROUP PERFORMANCE HIGHLIGHTS Q3 2022 RECORD DEVELOPMENT SALES AND ONGOING EXECUTION OF ALDAR’S TRANSFORMATIONAL GROWTH STRATEGY CONTINUES TO DELIVER STRONG PERFORMANCE Q3 Revenue (AED bn) Q3 EBITDA, NP (AED mn) 3.00 1,000 900 Revenue: EBITDA: Net Profit: 2.50 800 2.00 700 AED 2.7bn AED 757m AED 601m
Slide 5: Aldar Development
ALDAR DEVELOPMENT RECORD SALES FROM NEW PROJECT LAUNCHES IN THE UAE, SUPPORTED BY CONTINUED STRONG LOCAL AND INCREASED INTERNATIONAL DEMAND, IN ADDITION TO ROBUST CONTRIBUTION FROM SODIC AED bn Aldar Development Quarterly Sales 4.5 UAE Group Sales Revenue Backlog1 Egypt 4 Rolling 12 Months Total Gro
Slide 6: Project Management Services Growth
PROJECT MANAGEMENT SERVICES GROWTH ALDAR AWARDED AED 31.6 BILLION OF NEW PROJECTS IN 2022 AED bn Project Management Backlog Progression 70.0 Project Management 8.7 28.8 CAPEX Backlog New Awards 60.0 16.9 22.5 September 2022: YTD 2022 -2.2 AED 64.2bn AED 31.6 bn 50.0 +56% 6.0 13.7 YTD 40.0 - 2.0 - 4.
Slide 7: Aldar Investment
ALDAR INVESTMENT Aldar Investment STRONG PERFORMANCE ON THE BACK OF ACQUISITIONS AND REBOUND Q3 Revenue1: IN HOSPITALITY AND RETAIL AED 1bn +34% YoY Investment Properties: Hospitality and Leisure: Education: Q3 Adj. EBITDA3: Q3 EBITDA: Q3 EBITDA: Q3 ADJ. EBITDA1,2: AED 342m AED 29m AED 424m +23% AED
Slide 8: Capital Deployment – YTD 2022
CAPITAL DEPLOYMENT – YTD 2022 SIGNIFICANT ACTIVITY IN YTD 2022 ACROSS EXISTING AND NEW MARKETS: C. AED 11 BN OF CAPITAL DEPLOYED OR COMMITTED – 7-8% STABILIZED NOI YIELD ON INVESTMENTS Aldar Investment (c. AED 7.1bn) Aldar Development (c. AED 4.1bn) Date Transaction Value (AEDm) Segment Date Transac
Slide 9: Apollo Transaction
APOLLO TRANSACTION ALDAR COMPLETED LONG-TERM US$1.4B INVESTMENT TRANSACTION WITH APOLLO US$1.4bn of Long Term Investment 1 ▪ US$ 500m investment into a joint venture between Land Joint Aldar Properties PJSC (“AP”) and Apollo for a portion Venture of AP’s landbank ■ Land Joint Venture Closed 30th Sep
Slide 10: UAE Growth Prospects Improve Despite Global Headwinds
UAE GROWTH PROSPECTS IMPROVE DESPITE GLOBAL HEADWINDS LATEST IMF WORLD ECONOMIC OUTLOOK REPORT REVISES UAE GROWTH FORECAST UPWARDS WHILE DOWNGRADING GLOBAL FORECASTED GROWTH % Change in 2022 GDP Growth Forecast % Change in 2023 GDP Growth Forecast 50.00% 36.28% 50.00% 30.00% 19.06% 30.00% 8.94% 8.45
Slide 11: 2022 Outlook / Guidance
2022 OUTLOOK / GUIDANCE ▪ Strong deal pipeline with AED 5bn equity expected to be deployed over next 12 months into Group new geographies and across segments ▪ 2022 Group sales guidance of c. AED 12-13bn ─ 2022 UAE sales guidance of AED 9-10bn Development ─ 2022 Egypt sales guidance of +EGP 14bn (+A
Slide 12: Q3 2022 Results Summary
Q3 2022 RESULTS SUMMARY INVESTOR PRESENTATION Q3 2022 12
Slide 13: Q3 2022 – Group Financial Highlights
Q3 2022 – GROUP FINANCIAL HIGHLIGHTS AEDm Q3 2022 Q3 2021 Var Revenue 2,713 2,087 30% Gross Profit 1,135 834 36% Margin % 42% 40% 190bps EBITDA 757 594 28% Margin % 28% 28% - Net profit 601 474 27% Margin % 22% 23% (60bps) Note: 1. Adjusted for fair value movements (excluding amortization of leaseho
Slide 14: 9M 2022 – Group Financial Highlights
9M 2022 – GROUP FINANCIAL HIGHLIGHTS AEDm 9M 2022 9M 2021 Var Revenue 8,066 6,320 28% Gross Profit 3,447 2,434 42% Margin % 43% 39% 420bps EBITDA 2,543 1,894 34% Margin % 32% 30% 160bps Adj. EBITDA1 2,384 1,803 32% Margin % 30% 29% 100bps Net profit 2,130 1,539 38% Margin % 26% 24% 210bps Note: 1. A
Slide 15: Balance Sheet
BALANCE SHEET STRONG BALANCE SHEET POSITION SUPPORTED BY PRUDENT CAPITAL MANAGEMENT AND ROBUST GOVERNANCE BALANCE SHEET LEVERAGE Aldar Aldar Investment Development AED millions 30 Sep 2022 31 Dec 2021 Outstanding ▪ Sukuk: 3.7bn ASSETS Debt (AED bn)1 ▪ Bank: 0.1bn ▪ Bank: 5.2bn (as at 30-Sep-22) Prop
Slide 16: Strong Group Balance Sheet Supporting Growth
STRONG GROUP BALANCE SHEET SUPPORTING GROWTH HIGHEST NON-GRE / CORPORATE CREDIT RATING OF BAA1 (ALDAR INVESTMENT PROPERTIES) WITH ONE OF THE LOWEST COSTS OF CAPITAL Debt and Facilities Breakdown AED 1.4bn 3.7 Facilities maturing in 2023 4.9 refinanced in Q3 2022 5.9 AED 1.5bn Sukuk Facilities drawn
Slide 17: Q3 2022 – Key Sustainability Updates
Q3 2022 – KEY SUSTAINABILITY UPDATES ▪ Aldar – alongside The Ministry of Climate Change and Environment (MoCCAE) and 20 other UAE companies – signed the UAE Climate- Responsible Companies Pledge, which aims to increase the engagement of the private sector in the country’s decarbonisation drive, in l
Slide 18: Aldar Investment
ALDAR INVESTMENT INVESTOR PRESENTATION Q3 2022 18
Slide 19: Aldar Investment Capital Deployment – YTD 2022
ALDAR INVESTMENT CAPITAL DEPLOYMENT – YTD 2022 C. AED 7 BN OF CAPITAL DEPLOYED ACROSS EXISTING AND NEW SEGMENTS – NOI YIELD GUIDANCE OF 7-8% Capital Deployment FY 2021 (YTD 2022)2 YTD AUM 20222,3 Logistics Commercial Logistics Commercial 3% Retail 19% 84% Commercial 46% 8% 33% Retail Investment Reta
Slide 20: Aldar Investment Q3 2022 Financial Performance
ALDAR INVESTMENT Q3 2022 FINANCIAL PERFORMANCE AED mn Q3 2022 Q3 2021 Var Recurring revenue1 1,048 783 34% Investment Properties Investment Properties3 506 412 23% • Retail: Q3 Adj. EBITDA2 +12% YoY to AED 117m, driven by Yas Mall Hospitality & Leisure 193 82 137% repositioning, and acquisition of A
Slide 21: Aldar Investment 9M 2022 Financial Performance
ALDAR INVESTMENT 9M 2022 FINANCIAL PERFORMANCE AED mn 9M 2022 9M 2021 Var Recurring revenue1 2,800 2,341 20% Investment Properties Investment Properties3 1,399 1,243 13% • Retail: 9M Adj. EBITDA2 +15% YoY to AED 342m, driven by Yas Mall Hospitality & Leisure 460 249 85% repositioning, and acquisitio
Slide 22: Investment Properties Overview
INVESTMENT PROPERTIES OVERVIEW1 COMMERCIAL RESIDENTIAL RETAIL LOGISTICS No. 14 13 33 2 Leasable area 470,772 sqm 825,323 sqm 530,433 sqm 165,506 sqm Occupancy 86% 97% 90% 87% WAULTS (yrs) 3.8 2.9 4.2 5 Q3 22 Revenue AED 142m (Q3 21: AED 109m) AED 154m (Q3 21: AED 140m) AED 188m (Q3 21: AED 155m) AED
Slide 23: Hospitality & Leisure
HOSPITALITY & LEISURE BROAD RESILIENT PORTFOLIO MAKE UP HOTELS • The hotel portfolio consists of assets from 3 to 5 star, in addition to hotel apartments • Key assets: - W Yas Island - Radisson Blu - Crowne Plaza AED m Q3 2022 Q3 2021 - Rotana Revenue AED193m AED 82m - Anantara Eastern Mangroves - N
Slide 24: Aldar Education – 2nd Largest Private School Operator in UAE
ALDAR EDUCATION – 2ND LARGEST PRIVATE SCHOOL OPERATOR IN UAE TODAY 60 50 50.00 Operated Schools Update Managed Schools Update 40 45.00 40.00 33 o +14% growth in operated schools enrolment o +31% growth in managed schools enrolment 28 35.00 30 26 year-on-year year-on-year 30.00 25 20 20 22 o +6% like
Slide 25: Principal Investments
PRINCIPAL INVESTMENTS1 ▪ Aldar’s real estate services arm is comprised ▪ Principal Investments 9M EBITDA increased 44% YoY to AED 63m of Khidmah, a facilities management business and Provis a property management ▪ Largely due to Provis’ new revenue streams such as the integrated facilities business
Slide 26: Aldar Development
ALDAR DEVELOPMENT INVESTOR PRESENTATION Q3 2022 26
Slide 27: Aldar Development Q3 2022 Financial Performance
ALDAR DEVELOPMENT Q3 2022 FINANCIAL PERFORMANCE AED mn Q3 2022 Q3 2021 Var Group Sales 3,930 2,694 46% Property Development & Sales UAE 3,189 2,694 18% • Group sales (incl. SODIC) +46% YoY to AED 3.9bn Egypt 741 - - • Development revenue +8% YoY to AED 990m Revenue 1,643 1,256 31% • PD&S EBITDA +18%
Slide 28: Aldar Development 9M 2022 Financial Performance
ALDAR DEVELOPMENT 9M 2022 FINANCIAL PERFORMANCE AED mn 9M 2022 9M 2021 Var Group Sales 9,261 6,137 51% Property Development & Sales UAE 7,198 6,137 17% • Group sales (incl. SODIC) +51% YoY to AED 9.3bn Egypt 2,063 - - • Development revenue +25% YoY, driven by record sales from new project Revenue 5,
Slide 29: Land Bank Overview
LAND BANK OVERVIEW ALDAR HAS ACCESS TO A LARGE AND HIGHLY VALUE ACCRETIVE LAND BANK OF C. 65M1 SQM WHICH IS MONETIZED THROUGH DESTINATION MASTER PLANNING / DEVELOPMENT AND ONGOING INVESTMENT KEY CURRENT DESTINATIONS INCLUDE YAS AND SAADIYAT AND FUTURE DESTINATIONS INCLUDE MINA ZAYED AND AL GHADEER D
Slide 30: UAE Development Projects Pipeline
UAE DEVELOPMENT PROJECTS PIPELINE Total as at 30 September 22 Project Location Launch date Sold units Net Sales value (AEDm) Units launched % sold % completion Project Status Ansam Yas Island 2014 545 953 547 99.6% 100% Handed over Hadeel Al Raha Beach 2014 233 482 233 100.0% 100% Handed over Highli
Slide 31: Appendix
APPENDIX INVESTOR PRESENTATION Q3 2022 31
Slide 32: Segmental Breakdown – Q3 2022 vs. Q3 2021 & Q2 2022
SEGMENTAL BREAKDOWN – Q3 2022 vs. Q3 2021 & Q2 20221 REVENUE (AEDm)2 1,135 990 915 506 412 452 360 293 341 342 283 193 137 155 133 142 194 156 162 82 n.a Investment Properties Hospitality & Leisure Education Principal Investments1 Property Development & Project Management Egypt Sales Services Q3 202
Slide 33: UAE Policy Reforms and Energy Strategy
UAE POLICY REFORMS AND ENERGY STRATEGY FEDERAL ANNOUNCEMENTS ENERGY INDUSTRY ▪ H.H. Sheikh Mohamed bin Zayed Al Nahyan was appointed President of the UAE on 14 May 2022. ▪ ADNOC will continue to deliver on its 2030 strategy, including its value ▪ Rapid rollout of a major vaccination campaign underpi
Slide 34: Aldar Value Proposition
ALDAR VALUE PROPOSITION INVESTOR PRESENTATION Q3 2022 34
Slide 35: Leading Regional Real Estate Play Delivering Growth
LEADING REGIONAL REAL ESTATE PLAY DELIVERING GROWTH BENEFITING FROM ACCESS TO SIGNIFICANT GROWTH CAPITAL AND SUPPORTED BY STRONG MACRO TAILWINDS ALDAR HIGHLIGHTS ✓ Abu Dhabi master developer of iconic destinations with proven delivery and sales track-record and leading share in off-plan residential
Slide 36: Key Value Drivers
KEY VALUE DRIVERS LEADING ABU DHABI PROPERTY COMPANY WITH DIVERSIFIED BUSINESS MODEL COMPRISED OF TWO CORE BUSINESSES; ALDAR INVESTMENT AND ALDAR DEVELOPMENT Mkt Cap: AED 34.6bn / US$ 9.4bn1 Revenue: AED 8.3bn / US$ 2.3bn3 Credit rating: Baa2 (Parent) / Baa1 (AIP)2 EBITDA: AED 2.8bn / US$ 0.8bn3 (1)
Slide 37: Contact Us
CONTACT US For any further enquiries please contact: Mike Wallace Executive Director – Corporate Finance & Treasury Tel: +971 (0)2 810 5599 Email: mwallace@aldar.com Omar Nashaat Vice President – Investor Relations Tel: +971 (0)2 810 6237 Email: onashaat@aldar.com INVESTOR PRESENTATION Q3 2022 37
Slide 38: Thank You
THANK YOU INVESTOR PRESENTATION Q3 2022 38