Al Dar Properties · ADX:ALDAR
Al Dar Properties — HSBC MENAT Investor Forum 2023
41 slides from Al Dar Properties's conference presentation, February 2023
Slide 1: Aldar Properties
ALDAR PROPERTIES FEBRUARY 2023
Slide 2: Agenda
AGENDA 1 Abu Dhabi 2 Aldar Overview 3 Aldar Investment 4 Aldar Development ALDAR INVESTOR PRESENTATION 2
Slide 3: Abu Dhabi
ABU DHABI ALDAR INVESTOR PRESENTATION 3
Slide 4: Abu Dhabi – One of the Most Attractive and Stable Investment Destinations Globally
ABU DHABI – ONE OF THE MOST ATTRACTIVE AND STABLE INVESTMENT DESTINATIONS GLOBALLY ABU DHABI PRESENTS A UNIQUE OPPORTUNITY TO EARN ONE OF THE HIGHEST SPREADS TO SOVEREIGN RETURNS ON INSTITUTIONAL-GRADE REAL ESTATE IN AA-RATED US$ PEGGED ECONOMY ▪ Abu Dhabi contributes the majority of the UAE’s GDP (
Slide 5: Abu Dhabi – Positioned for Significant Growth
ABU DHABI – POSITIONED FOR SIGNIFICANT GROWTH WORLD-LEADING COVID- STRONG POST- BOLD FISCAL AGENDA ADVANCING PPP / 19 POLICY RESPONSE PANDEMIC RECOVERY AND POLICY REFORMS PRIVATIZATION AGENDA HIGHEST VACCINATION POISED FOR INCREASING LOCAL SIGNIFICANT OPPORTUNITY RATES AND EFFECTIVE SUSTAINABLE LONG
Slide 6: Abu Dhabi – Bold Fiscal Agenda and Policy Reforms
ABU DHABI – BOLD FISCAL AGENDA AND POLICY REFORMS IN ADDITION TO SUPPORTIVE MACRO FUNDAMENTALS, ABU DHABI IS UNDERPINNED BY PROGRESSIVE POLICY / LEGISLATIVE REFORM AND STRUCTURAL ATTRIBUTES Economic diversification Federal law changes to Fiscal stimulus to support driven by sustainability / Maturati
Slide 7: UAE – Strong Growth Prospects Despite Global Headwinds
UAE – STRONG GROWTH PROSPECTS DESPITE GLOBAL HEADWINDS LATEST IMF WORLD ECONOMIC OUTLOOK REPORT REVISED UAE GROWTH FORECAST UPWARDS WHILE DOWNGRADING GLOBAL FORECASTED GROWTH 2023 GDP Growth Forecast (%) 2024 GDP Growth Forecast (%) 5.00% 5.00% 4.6% 4.4% 4.50% 4.2% 4.50% 4.3% 4.00% 3.7% 3.7% 3.8% 4.
Slide 8: Aldar Overview
ALDAR OVERVIEW ALDAR INVESTOR PRESENTATION 8
Slide 9: 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 10: 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 34.8bn / US$ 9.5bn1 Revenue: AED 11.2bn / US$ 3.0bn3 Credit rating: Baa2 (Parent) / Baa1 (AIP)2 EBITDA: AED 3.7bn / US$ 1.0bn3 Al
Slide 11: Strong Financial Performance Across Businesses
STRONG FINANCIAL PERFORMANCE ACROSS BUSINESSES STABLE “THROUGH-THE-CYCLE” GROUP PERFORMANCE – POISED FOR GROWTH THROUGH STRATEGIC DEPLOYMENT OF SURPLUS CAPITAL INTO NEW ASSET CLASSES AND GEOGRAPHIES Consistent Revenue Growth (AED bn) Higher Gross Profit (AED bn) 11.2 4.7 8.4 8.6 3.6 7.1 2.8 3.0 6.2
Slide 12: Robust Group Balance Sheet Supporting Growth
ROBUST 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 6.5bn Free Cash1 4.0 3.7 6.6 AED 4.0bn Sukuk Facilities drawn Facilities Undrawn Undrawn Facilities D
Slide 13: Transparent Dividend and Leverage Policies
TRANSPARENT DIVIDEND AND LEVERAGE POLICIES CONSISTENTLY APPLIED DIVIDEND AND LEVERAGE POLICIES DEMONSTRATE STRONG GOVERNANCE AND FINANCIAL DISCIPLINE SHAREHOLDER RETURNS BALANCE SHEET ▪ 1-yr and 3-yr Total Shareholder Returns of 14% and 139%, ▪ Robust balance sheet with debt well within stipulated L
Slide 14: Track Record of Growth
TRACK RECORD OF GROWTH DEMONSTRATED TRACK-RECORD OF GROWTH THROUGH ACQUISITIONS JUL 2022 AED 4.3bn acquisition of 4 ADGM towers SEP 2018 DEC 2021 2013 - 2014 AED 1.5bn 6 Post-merger with AED 20bn Aldar Investment acquisition of Egypt Sorouh to establish JAN 2021 developer SODIC Properties created 7
Slide 15: Aldar Growth Agenda
ALDAR GROWTH AGENDA WELL-FUNDED AND LIQUID BALANCE SHEET WITH FURTHER GROWTH CAPITAL FROM APOLLO TO FUND WAVE OF DEPLOYMENT DEVELOPMENT INVESTMENT • Structural increase in Abu Dhabi • Capital deployment for asset and development geographic diversification • Growth of Project Management Services fee-
Slide 16: Capital Deployment – 2022
CAPITAL DEPLOYMENT – 2022 SIGNIFICANT ACTIVITY IN YTD 2022 ACROSS EXISTING AND NEW MARKETS: C. AED 11.5 BN OF CAPITAL DEPLOYED OR COMMITTED – 7-8% STABILIZED NOI YIELD ON INVESTMENTS Aldar Investment (c. AED 7.4bn) Aldar Development (c. AED 4.1bn) Date Transaction Value (AED mn) Segment Date Transac
Slide 17: Apollo Transaction
APOLLO TRANSACTION ALDAR COMPLETED LONG-TERM US$1.4B INVESTMENT TRANSACTION WITH APOLLO IN 2022 US$ 1.4bn of Long Term Investment 1 ▪ US$ 500mn investment into a joint venture between Land Joint Aldar Properties PJSC (AP) and Apollo for a portion Venture ■ Land Joint Venture of AP’s landbank Closed
Slide 18: Key Sustainability Updates
KEY SUSTAINABILITY UPDATES Progress in our sustainability strategy ESG rating improvement Year-on-Year ▪ Economy ▪ Recirculated AED 7.6 billion to the local economy by awarding contracts to ICV-certified companies. ▪ Trained 400+ suppliers on sustainability ▪ Community ▪ Announced the first Sustaina
Slide 19: Emissions notes
Note: Scope 1 emissions are direct emissions from owned or controlled sources Scope 2 emissions are indirect emissions from the generation of purchased energy Scope 3 emissions are all indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both
Slide 20: 2023 Guidance
2023 GUIDANCE Aldar Equity Deployment AED 5bn Group Group Sales AED 15 to 17bn Aldar Group Revenue Backlog AED 21 to 23bn Development Project Management Gross Profit AED 500 to 550mn Aldar Adj. EBITDA AED 2.0 to 2.1bn1,2 Investment 1 Excludes Pivot 3 Adjusted for fair value movements (excluding amor
Slide 21: Aldar Investment
ALDAR INVESTMENT ALDAR INVESTOR PRESENTATION 21
Slide 22: Aldar Investment
ALDAR INVESTMENT INVESTMENT STRATEGY TAILORED TO FOUR POOLS OF CAPITAL INVESTMENT ALDAR HOTELS & EDUCATION & PRINCIPAL THIRD PARTY PROPERTIES HOSPITALITY (AH&H) INVESTMENTS (E&PI) MANDATES • Constituting the bulk of AI’s AUM, • Aldar’s hospitality and leisure portfolio • Majority and minority equity
Slide 23: Investment Properties Overview
INVESTMENT PROPERTIES OVERVIEW1 COMMERCIAL RESIDENTIAL RETAIL LOGISTICS No. 15 12 36 2 Leasable area 503,071 sqm 828,662 sqm 536,439 sqm 165,506 sqm Occupancy 88% 97% 91% 91% WAULTS (yrs) 4.0 2.8 4.2 4.8 FY 22 Revenue AED 548mn (FY 21: AED 462mn) AED 593m (FY 21: AED 567mn) AED 720m (FY 21: AED 636m
Slide 24: Investment Properties – Target Sector Allocation
INVESTMENT PROPERTIES – TARGET SECTOR ALLOCATION ASSESSING ASSET CLASSES SECTOR CURRENT AIP EXPOSURE TARGET GEOGRAPHY • Increase exposure with focus on assets with mid to long-term leases to reputable tenants Office • Explore sale-and-leaseback opportunities of office headquarters UAE / KSA Educatio
Slide 25: Hospitality & Leisure
HOSPITALITY & LEISURE BROAD RESILIENT PORTFOLIO MAKE UP HOTELS • The hotel portfolio consists of assets from 3 to 5 star, in AED mn FY 2022 FY 2021 addition to hotel apartments Revenue AED 828mn AED 433mn • Key assets: - W Yas Island Adj. EBITDA AED 208mn AED 77mn - Radisson Blu - Crowne Plaza - Rot
Slide 26: Aldar Education – 2nd Largest Private School Operator in UAE Today
ALDAR EDUCATION – 2ND LARGEST PRIVATE SCHOOL OPERATOR IN UAE TODAY 60 50 50.00 Operated Schools Update Managed Schools Update 40 45.00 o +14% growth in operated schools enrolment year- 40.00 33 o +31% growth in managed schools enrolment year- 30 28 35.00 on-year on-year 30.00 25 26 o +6% like-for-li
Slide 27: Principal Investments
PRINCIPAL INVESTMENTS1 ▪ Aldar’s real estate services arm is comprised ▪ Principal Investments FY 2022 EBITDA increased 72% YoY to AED 98mn of Khidmah, a facilities management business and Provis a property management ▪ Largely due to Provis’ new revenue streams such as the integrated facilities bus
Slide 28: Aldar Investment Capital Deployment – 2022
ALDAR INVESTMENT CAPITAL DEPLOYMENT – 2022 C. AED 7.4 BN OF CAPITAL DEPLOYED ACROSS EXISTING AND NEW SEGMENTS – NOI YIELD GUIDANCE OF 7-8% FY 2021 2022 Capital Deployment FY 2022 AUM2 Logistics Retail Commercial Logistics Commercial 3% 46% 19% 7% 85% Commercial 35% Retail Retail Investment 37% AED 1
Slide 29: Aldar Investment – Key Pillars
ALDAR INVESTMENT – KEY PILLARS 01 02 03 04 Extremely high-quality Well-formulated allocation Clear and focused Leveraging the Group asset base that cannot be strategy across sectors direction of travel (growth network to drive operational easily replicated and ultimate AuM) and financial synergies 0
Slide 30: Aldar Development
ALDAR DEVELOPMENT ALDAR INVESTOR PRESENTATION 30
Slide 31: Capital Deployment – 2022
CAPITAL DEPLOYMENT – 2022 SIGNIFICANT ACTIVITY IN YTD 2022 ACROSS EXISTING AND NEW MARKETS: C. AED 11.5 BN OF CAPITAL DEPLOYED OR COMMITTED – 7-8% STABILIZED NOI YIELD ON INVESTMENTS Aldar Investment (c. AED 7.4bn) Aldar Development (c. AED 4.1bn) Date Transaction Value (AED mn) Segment Date Transac
Slide 32: Aldar Development – Leading Development Franchise in Abu Dhabi and Egypt (1/2)
ALDAR DEVELOPMENT – LEADING DEVELOPMENT FRANCHISE IN ABU DHABI AND EGYPT (1/2) DEVELOPMENT SEGMENT HAS DEMONSTRATED CONSISTENT THROUGH-THE-CYCLE PERFORMANCE OVER THE PAST 5 YEARS, PRIMARILY DRIVEN BY DEVELOPMENT SALES (AED bn) (AED bn) 16.0 14.4 7.0 14.0 6.0 Sustained 12.0 6.0 5.0 5.0 through-the- 1
Slide 33: Aldar Development – Leading Development Franchise in Abu Dhabi and Egypt (2/2)
ALDAR DEVELOPMENT – LEADING DEVELOPMENT FRANCHISE IN ABU DHABI AND EGYPT (2/2) DIVERSIFIED HOMEBUILDING PLATFORM WITH SIZEABLE BACKLOG AND COMPLEMENTED BY WORLD CLASS PROJECT MANAGEMENT SERVICES BUSINESS 1 Development & Sales 2 Project Management Services 3 Owned Land Bank Revenue Total area: Projec
Slide 34: UAE Development Projects Pipeline
UAE DEVELOPMENT PROJECTS PIPELINE Total as at 31 Dec 22 Launch Net Sales value Project Location date Sold units (AED mn) Units launched % sold % completion Project Status Ansam Yas Island 2014 544 950 547 99.5% 100% Handed over Hadeel Al Raha Beach 2014 233 482 233 100% 100% Handed over Nareel Abu D
Slide 35: Land Bank Overview
LAND BANK OVERVIEW ALDAR HAS ACCESS TO A LARGE AND HIGHLY VALUE ACCRETIVE LAND BANK OF C. 69M1 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 36: Aldar Projects
ALDAR PROJECTS ALDAR AWARDED AED 35.6 BILLION OF NEW PROJECTS IN 2022 AED bn Project Management Backlog Progression 70 64 65 Project Management 60 57 9 29 3 4 34 CAPEX Backlog 17 22 2 December 2022: 50 AED 64.8bn 43 2 +56% 40 4 6 14 YTD 35 35 30 New Awards 31 29 20 FY 2022 AED 35.6bn 10 0 Work Q1 Ne
Slide 37: Expansion into Egypt
EXPANSION INTO EGYPT ▪ SODIC was founded in 1996 and listed on the EGX – Aldar acquired a majority stake of 85.5% in consortium with ADQ in December 2021 ▪ Leading Egyptian real estate developers, focused on: ▪ Class-A, largescale, mixed-use communities ▪ West Cairo, East Cairo and the North Coast ▪
Slide 38: Future Growth Areas
FUTURE GROWTH AREAS EGYPT REGIONAL EXPANSION ALDAR VENTURES • Market leader • New markets through M&A / • Incubation of new Proptech • High performing local JVs leveraging G2G business lines platform • Exploring UAE opportunities • Focus on real estate service • Strategic acquisitions and • GCC cust
Slide 39: Contact Us
CONTACT US For any further enquiries please contact: Pamela Chahine Senior Vice President Investor Relations Tel: +971 (0)2 810 6585 Email: pchahine@aldar.com Omar Nashaat Vice President Investor Relations Tel: +971 (0)2 810 6237 Email: onashaat@aldar.com ALDAR INVESTOR PRESENTATION 39
Slide 40: Disclaimer
DISCLAIMER This presentation is intended for information purposes only and does not constitute or form part of an offer for sale or subscription or an invitation or solicitation of an offer to subscribe for or purchase securities of any kind and neither this document nor anything contained herein sh
Slide 41: Thank You
THANK YOU ALDAR INVESTOR PRESENTATION 41