Al Dar Properties · ADX:ALDAR
Al Dar Properties — FY2016 Earnings Presentation
27 slides from Al Dar Properties's earnings presentation, Feb 14, 2017
Slide 1: Q4 & 2016 FY Results Presentation
Q4 & 2016 FY RESULTS PRESENTATION 14 February 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: Contents
CONTENTS Speakers Contents Page(s) Greg Fewer, Chief Financial Officer Key Highlights 4-5 Talal Al Dhiyebi, Chief Development Officer Development Business 6-10 Jassem Busaibe, Chief Asset Management Officer Asset Management Business 11-14 Financial Review 15-21 Summary 22 Appendix 23-26 3
Slide 4: Key Highlights
KEY HIGHLIGHTS GREG FEWER, CHIEF FINANICAL OFFICER 4
Slide 5: 2016 at a Glance
2016 AT A GLANCE Development • AED 3.5 billion sales value across units sold – Q4 sales of AED 0.5 billion • Positioning for mid-market Asset Management • AED 1.6 billion NOI guidance achieved • Resilient occupancy across asset base Financial • Net profit up 8% year-on-year to AED 2.8 billion • 2016
Slide 6: Development Business
DEVELOPMENT BUSINESS TALAL AL DHIYEBI, CHIEF DEVELOPMENT OFFICER 6
Slide 7: Development Overview
DEVELOPMENT OVERVIEW • 7 current projects under development • West Yas progressing well • Wide range of product offering – studio apartment to 6-bed villa • Focused around three key destinations; Yas Island, Shams Abu Dhabi and Al Raha Beach • AED 4.1 billion net revenue backlog 7
Slide 8: 2016 Development Launches
2016 DEVELOPMENT LAUNCHES • Yas Acres project announced in April • AED 6 billion gross development value (GDV) • 1,315 villas and townhouses • 3 phases launched across April, June and October – 652 units in total • 90% sold across Phase I & II, 35% sold across Phase III • Sales progress at Mayan • 3
Slide 9: 17% Growth in 2016 Development Sales Value
17% GROWTH IN 2016 DEVELOPMENT SALES VALUE • Strongest year of sales since reopening the off-plan market in 2014 • AED 3.5 billion sales value driven by sales at Yas Acres, West Yas and Mayan • Q4 2016 sales value of AED 0.5 billion including AED 0.1 billion at West Yas Sales value performance (AED
Slide 10: Development Outlook
DEVELOPMENT OUTLOOK • 81% sold across 2,800 units launched since mid-2014 across 7 developments • Focus remains on untapped segments of the market • 2014-2015 – prime investment-zone apartment • 2016 – investment-zone villa • 2017 – mid-market, investment-zone apartment • Outlook • 1,500 unit guidan
Slide 11: Asset Management Business
ASSET MANAGEMENT BUSINESS JASSEM BUSAIBE, CHIEF ASSET MANAGEMENT OFFICER 11
Slide 12: Operational Highlights
OPERATIONAL HIGHLIGHTS 94% Yas Mall trading occupancy 92% 36% Dec 2016 residential Bulk tenants as at occupancy Dec 2016 95% 77% Dec 2016 office Government and occupancy GRE lease tenants 77% 2016 full year average occupancy 12
Slide 13: Recurring Revenue NOI Guidance Delivered
RECURRING REVENUE NOI GUIDANCE DELIVERED Recurring revenue net operating income (AED billion) 1.6 1.5 1.0 0.7 2013FY 2014FY 2015FY 2016FY • 2016 NOI guidance of AED 1.6 billion met despite more challenging market conditions • 2013-2016 CAGR of 31% supported by delivery of key assets including Yas Ma
Slide 14: Asset Management Outlook
ASSET MANAGEMENT OUTLOOK • Resilient asset base, solid occupancy performance • 2017 NOI guidance remains at AED 1.6 billion • Focus on deploying remainder of AED 3 billion investment plan – AED 1.1 billion committed to date • 2020 NOI target unchanged – AED 2.2 billion 14
Slide 15: Financial Review
FINANCIAL REVIEW GREG FEWER, CHIEF FINANCIAL OFFICER 15
Slide 16: Profit & Loss
PROFIT & LOSS Q-o-Q Y-o-Y AED millions Q4 2016 Q4 2015 2016FY 2015FY Revenues 1,411 1,125 6,237 4,586 Direct costs (889) (558) (3,598) (2,380) Gross profit 522 567 2,639 2,206 Gross profit Margin 37% 50% 42% 48% SG&A expenses (112) (118) (404) (380) Depreciation and Amortization (50) (57) (199) (210
Slide 17: Quarterly Segmental Analysis
QUARTERLY SEGMENTAL ANALYSIS Q4 2016 recurring revenues of AED789 million (Q4 2015: AED801 million) ¹ Q4 Segmental Revenue Performance 435 420 426 AED Millions 343 268 214 175 139 38 28 45 4 Investment Properties Hospitality & Leisure Operative Villages Adjacent Businesses Development Management Pro
Slide 18: Balance Sheet
BALANCE SHEET Q-o-Q Y-o-Y As at As at As at As at AED millions 31 Dec 2016 30 Sep 2016 31 Dec 2016 31 Dec 2015 Property, plant and equipment 2,986 3,025 2,986 2,936 Investment properties 15,773 15,796 15,773 15,570 Development work in progress 1,298 2,442 1,298 2,745 Inventory 2,449 2,441 2,449 2,03
Slide 19: Government Transactions
GOVERNMENT TRANSACTIONS Remaining Remaining cash inflows P&L events Transaction (AEDm) 2017 2018 Total Other income Sale of F1 Race Track 348 - 348 - Sale of Al Raha Beach Land ¹ 380 475 855 - Shams Infrastructure Reimbursement ² 300 - 300 340 1,028 475 1,503 340 ¹ Al Raha Beach land plot handed ove
Slide 20: 2016 Dividend
2016 DIVIDEND • Dividend policy • Applicable from 2016 • Based on the cash flow performance of the asset management and development businesses • Asset management dividend component based on 65-80% distributable free cash flow of 100% owned recurring revenue assets • Development dividend component ba
Slide 21: 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 11 fils 10 fils 9 fils 7 fils 6 fils 2012 2013 2014 2015 2016 21
Slide 22: Summary
SUMMARY • Solid set of results • Resilient operational performance supported by a high-quality asset base • Development off-plan sales value +17% • Recurring revenue NOI +5% • Clear dividend policy and shareholder returns • Strong balance sheet position • Outlook • Expect market headwinds • Strategy
Slide 23: Appendix
APPENDIX 23
Slide 24: Development Summary Table – 31 Dec 16
DEVELOPMENT SUMMARY TABLE – 31 DEC 16 Project Location Recognition Launch 2016 Full Year Total as at 31 Dec 2016 * Expected completion date Sold Sold unit sales Sold Sold unit Units % sold Revenue Revenue Revenue units ¹ value (AEDm) units ¹ sales value launched recognition % recognised backlog ¹ (A
Slide 25: Full Year Segmental Analysis
FULL YEAR SEGMENTAL ANALYSIS 2016FY recurring revenues of AED2,945 million (2015FY: AED2,865 million) ¹ 2,387 Segmental Revenue Performance 1,727 AED Millions 1,621 1,371 931 1,015 540 635 255 92 128 119 Investment Properties Hospitality & Leisure Operative Villages Adjacent Businesses Development M
Slide 26: Business Overview
BUSINESS OVERVIEW Property development Asset management Adjacent Businesses management Property Development Retail Schools • Current projects – Ansam, Al Hadeel, • 470,000 sqm GLA across 27 assets • Aldar Academies – 100% owned Nareel, Al Merief, Meera, Mayan and Yas • Yas Mall: 94% trading occupanc
Slide 27: Thank You
THANK YOU ALL RIGHTS RESERVED