Al Dar Properties · ADX:ALDAR
Al Dar Properties — 9M 2023 Earnings Presentation
42 slides from Al Dar Properties's earnings presentation, Oct 30, 2023
Slide 1: 9M 2023 Results Presentation
9M 2023 RESULTS PRESENTATION Aldar Properties 30 October 2023
Slide 2: 9M 2023 Group Highlights
9M 2023 GROUP HIGHLIGHTS 9M 2023 Results Presentation 30 October 2023
Slide 3: 9M 2023 Executive Summary
9M 2023 EXECUTIVE SUMMARY Group ▪ Cross-platform growth driven by ongoing execution of development revenue backlog, record development sales and contributions from recurring income portfolio Revenue EBITDA Net Profit ▪ 2022 acquisitions delivering strong returns, surpassing underwriting AED 9.8bn AE
Slide 4: Aldar Development
ALDAR DEVELOPMENT Record YTD UAE sales at AED 17bn and revenue backlog of AED 23.6bn on the back of strong demand from overseas and expat buyers driven by Abu Dhabi’s appeal as a premier lifestyle and business destination Revenue (AED mn) Group Sales (AED bn) 19.4 7.8 2.4 7.0 14.4 +12% 0.6 1.4 5.2 5
Slide 5: Aldar Investment
ALDAR INVESTMENT Strong underlying portfolio performance; 2022 acquisitions performing above expectations Revenue1 (AED mn) Investment Hospitality & Education Principal Properties Leisure Investments1 +43% Occupancy 95% Occupancy 68% 31 Schools Property Mgmt. 4,005 11 Operated schools Commercial 96%
Slide 6: Q3 & YTD 2023 Announcement Highlights
Q3 &YTD 2023 - ANNOUNCEMENT HIGHLIGHTS Nikki Beach Residences, Ras Al 1st residential development , Dubai Balghaiylam Residential Khaimah (Q4 23) Development, Abu Dhabi (Aldar Projects) Aldar Development ▪ Partnership between Aldar & Nikki ▪ Haven – community rooted in nature & ▪ Developed in collab
Slide 7: Robust Group Balance Sheet Supporting Growth
ROBUST GROUP BALANCE SHEET SUPPORTING GROWTH (AED mn) 9M 23 Debt and Facilities (AED bn) Available Liquidity (AED bn) Debt 10,967 Sukuk Cash 12,087 5.5 Free Cash 1 Total Equity 36,729 3.9 9M 23 9M 23 Committed Debt to Total Equity 30% Facilites drawn undrawn 5.5 facilities Debt to Total Assets 15% 5
Slide 8: Growth & Expansion Strategy - A Leading Regional Real Estate Player
GROWTH & EXPANSION STRATEGY - A LEADING REGIONAL REAL ESTATE PLAYER Strong execution on Growth & Expansion strategy benefiting from disciplined capital deployment & fueled by stability and competitiveness of UAE Aldar Growth & Expansion Themes UAE – Stable & Competitive ❑ Core Business Growth (withi
Slide 9: Diversified Business in Various Sectors
DIVERSIFIED BUSINESS IN VARIOUS SECTORS Diversified business model comprised of two core businesses under Aldar Development & Aldar Investment DEVELOPMENT (AD) INVESTMENT (AI) Business Segments Property Dev Proj. Mgmt. Inv. Hospitality & Egypt Education Principal Inv. & Sales Services Properties Lei
Slide 10: Diversification into Growth Real Estate Sectors
DIVERSIFICATION INTO “GROWTH” REAL ESTATE SECTORS Deploying capital and investing into real state sectors to address relevant long-term trends Long Term Trends Description “Growth” Real Estate Sectors Winning Cities Cities with strong “work-live-play” • Student Accommodations elements that attract h
Slide 11: Opportunity to Become International Real Estate Player
OPPORTUNITY TO BECOME INTERNATIONAL REAL ESTATE PLAYER Sizeable diversified developer, operator and asset manager supported by strong shareholder & partner network; well positioned to export Aldar franchise into new geographies & bring new offerings to the UAE Shareholders & Partners Sizeable & Dive
Slide 12: Geographic Expansion Approach
GEOGRAPHIC EXPANSION APPROACH Identify like-minded local partners and established operating platforms to expand and build up scale New Sectors and Geographic Expansion Organic Inorganic Preferred Approach Traditional Active Financial Passive Financial Partnership Approach Investments Investments Ope
Slide 13: Q3 2023 Sustainability Highlights
Q3 2023 SUSTAINABILITY HIGHLIGHTS Globally Recognized Green Buildings Green Leases Renewable Energy • Completed LEED gap assessment for existing • Green leases activated for all retail leases at • Work ongoing to finalize a tender for onsite portfolio The Grove Solar Energy generation projects, to c
Slide 14: 2023 Guidance
2023 GUIDANCE Aldar Development group sales and revenue backlog guidance revised up FY 2023 FY 2023 FY 2023 Guidance Revised Guidance Revised Guidance (H1 2023) (Updated) Aldar Group Equity Deployment AED 5bn No change No change Group Sales AED 15 to 17bn AED 19 to 21bn AED 22 to 24bn Aldar Developm
Slide 15: Q&A
Q&A 9M 2023 Results Presentation 30 October 2023
Slide 16: 9M 2023 Group Results
9M 2023 GROUP RESULTS 9M 2023 Results Presentation 30 October 2023
Slide 17: Q3/9M 2023 Group Financial Highlights
Q3/9M 2023 GROUP FINANCIAL HIGHLIGHTS Sustained growth driven by ongoing execution of development revenue backlog, record development sales and contributions from recurring income portfolio Revenue (AED mn) (AED mn) Q323 Q3 22 Var 9M 23 9M 22 Var Revenue 3,458 2,713 27% 9,763 8,066 21% 9,763 8,066 5
Slide 18: 9M 2023 Group Balance Sheet
9M 2023 GROUP BALANCE SHEET Strong balance sheet position supported by prudent capital management and robust governance Balance Sheet Leverage (AED mn) 30 Sept 2023 31 Dec 2022 Property, plant and equipment 6,311 5,607 Investment properties 25,120 23,933 Aldar Development Aldar Investment LHFS, DWIP
Slide 19: Aldar Development
ALDAR DEVELOPMENT 9M 2023 Results Presentation 30 October 2023
Slide 20: Aldar Development Q3/9M 2023 Financial Performance
ALDAR DEVELOPMENT Q3/9M 2023 FINANCIAL PERFORMANCE (AED mn) Q3 23 Q3 22 Var 9M 23 9M 22 Var 9M 2023 Property Dev. & Sales (UAE only) • Sales +137% YoY to AED 17bn Group Sales 7,819 3,930 99% 19,395 9,261 109% • Revenue +29% YoY, driven by ongoing UAE 6,440 3,189 102% 17,040 7,198 137% execution of s
Slide 21: UAE Landbank Overview
UAE LANDBANK OVERVIEW Landbank is spread across key investment zones in Abu Dhabi, Dubai and Ras Al Khaimah Landbank1 Locations Destinations Abu Dhabi Saadiyat Island GFA 1.8mn sqm 69mn sqm Land Area 65.0mn sqm GFA 11.5mn sqm2 Yas Island GFA 2.8mn sqm ▪ Large & highly accretive landbank Mina Zayed G
Slide 22: UAE Development Projects Pipeline
UAE DEVELOPMENT PROJECTS PIPELINE TOTAL AS AT 30 September 23 LAUNCH PROJECT LOCATION PROJECT STATUS YEAR SOLD UNITS NET SALES VALUE (AED MN) UNITS LAUNCHED % Sold % Completion Noya Yas Island 2020 510 968 510 100.0% 95% under construction Noya Viva Yas Island 2021 479 1,009 479 100.0% 70% under con
Slide 23: Aldar Projects
ALDAR PROJECTS Execution of projects on track to meet guidance Project Management Backlog Progression (AED bn) Project Management CAPEX Backlog AED 59.4bn Gross Profit 64 4 65 AED 376mn 62 61 2 2 59 (3) (3) (3) (3) 29 34 31 30 31 2022 New Awards 35 31 31 31 28 AED 35.6bn 30-Sep-22 Work New 31-Dec-22
Slide 24: Aldar Investment
ALDAR INVESTMENT 9M 2023 Results Presentation 30 October 2023
Slide 25: Aldar Investment Q3/9M 2023 Financial Performance
ALDAR INVESTMENT Q3/9M 2023 FINANCIAL PERFORMANCE (AED mn) Q3 23 Q3 22 Var 9M 23 9M 22 Var 9M 2023 Investment Properties • Commercial: +82% YoY Adj. EBITDA2 to AED Recurring Revenue1 1,514 1,048 44% 4,005 2,800 43% 435mn driven by stronger performance Investment Properties3 (IP) 551 506 9% 1,626 1,3
Slide 26: Investment Properties Overview
INVESTMENT PROPERTIES OVERVIEW1 Commercial Residential Retail Logistics No. of assets 15 12 36 2 Leasable area (‘000 sqm) 502 816 521 166 Occupancy 96% 97% 91% 91% WAULT (yrs) 3.9 2.6 3.9 4.7 9M 2023 Revenue (AEDmn) 578 (+58% yoy) 440 (-1% yoy) 546 (+2% yoy) 45 9M 2023 NOI (AEDmn) 473 (+52% yoy) 360
Slide 27: Hospitality & Leisure
HOSPITALITY & LEISURE 3rd largest hospitality owner in the UAE by number of keys HOTELS THE HOTEL PORTFOLIO CONSISTS OF ASSETS FROM 3 TO 5 STAR, IN ADDITION TO HOTEL APARTMENTS AED mn 9M 23 9M 22 Key assets: ▪ W Yas Island Revenue 744 460 ▪ Radisson Blu ▪ Crowne Plaza Adj. EBITDA1 224 75 ▪ Rotana ▪
Slide 28: Aldar Education
ALDAR EDUCATION 2nd largest private school operator in the UAE Operated Schools Managed Schools Initial AED 1bn investment ( in 2022) fully committed adding ~12k seat capacity by AY25/26 • +25% enrolment growth YoY • +13% enrolment growth YoY driven • 78% capacity utilisation by addition of ESE scho
Slide 29: Principal Investments
PRINCIPAL INVESTMENTS1 Principal Investments1 9M 2023 Adj. EBITDA increased 100% to AED 124mn ▪ Principal Investments’ (PI) primarily consists of Aldar Estates, a Aldar Estates - Growing platform through a series of strategic platform which offers integrated property management, facility mergers and
Slide 30: Segmental Breakdown
SEGMENTAL BREAKDOWN 9M 2023 Results Presentation 30 October 2023
Slide 31: Segmental Breakdown Q3 2023 vs Q3 2022
SEGMENTAL BREAKDOWN Q3 2023 vs Q3 2022 Revenue (AED mn) 1,361 990 506 551 572 293 344 360 193 215 176 194 230 155 Investment Properties Hospitality & Leisure Education Principal Investments 1 Property Dev. Project Mgmt. Services Egypt & Sales Q3 22 Q3 23 EBITDA (AED mn) 466 432 342 202 123 123 42 48
Slide 32: Segmental Breakdown 9M 2023 vs 9M 2022
SEGMENTAL BREAKDOWN 9M 2023 vs 9M 2022 Revenue (AED mn) 4,334 3,359 1,626 1,399 1,147 744 897 921 924 460 436 488 504 566 Investment Properties Hospitality & Leisure Education Principal Investments1 Property Dev. Project Mgmt. Services Egypt & Sales 9M 22 9M 23 EBITDA (AED mn) 1,382 1,459 1,076 800
Slide 33: Appendix
APPENDIX 9M 2023 Results Presentation 30 October 2023
Slide 34: Diversified Business Model (FY 2022)
DIVERSIFIED BUSINESS MODEL (FY 2022)1 Leading Abu Dhabi property company with diversified business model comprised of two core businesses; ALDAR Development and Aldar Investment 2 Mkt Cap: AED 34.8bn Revenue: AED 11.2bn Credit rating: Baa2 (Parent)3 EBITDA: AED 3.7bn Aldar Development Aldar Investme
Slide 35: 2022 Capital Deployment
2022 CAPITAL DEPLOYMENT Significant activity in 2022 across existing and new markets: c. AED 11.5bn 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 Transaction Va
Slide 36: H1 2023 Announcement Highlights
H1 2023 ANNOUNCEMENT HIGHLIGHTS Aldar Development Aldar Investment Al Fahid Island acquisition in Abu Dhabi Joint Venture with Mubadala ▪ Introduction of unique beachfront offering in Abu Dhabi ▪ Develop new commercial assets on Al Maryah Island (Abu Dhabi) within ADGM ▪ 3.4mn sqm island between Yas
Slide 37: Q3 & YTD 2023 Announcement Highlights
Q3 &YTD 2023 - ANNOUNCEMENT HIGHLIGHTS Aldar Development Aldar Projects Nikki Beach Residences, Ras Al Khaimah Balghaiylam Residential Development, Abu Dhabi ▪ Partnership between Aldar & Nikki Beach Group ▪ Developed in collaboration with Abu Dhabi Government ▪ Develop 3 branded residential buildin
Slide 38: Q3 & YTD 2023 Announcement Highlights
Q3 & YTD 2023 - ANNOUNCEMENT HIGHLIGHTS Aldar Investment Increased Investment in Mall Redevelopments (Retail) Increased investment in Aldar Education (Education) ▪ AED 500mn investment into Al Jimi Mall & Al Hamra Mall ▪ AED 350mn additional investment into Aldar Education ▪ Al Jimi Mall, Al Ain − A
Slide 39: Delivering Positive Impact to Our Communities
DELIVERING POSITIVE IMPACT TO OUR COMMUNITIES Our aim is to shape lives for the better by creating positive and tangible impact that enrich inclusive, happy & healthy, and resilient communities through strategic partnerships Our Impact Journey & 2023 Impact Highlights Launched the 2nd Annual Continu
Slide 40: General Sustainability Highlights
GENERAL SUSTAINABILITY HIGHLIGHTS Protecting The Environment ▪ Launched Aldar Net Zero Plan, outlining our pathway to achieve Net Zero emissions by 2050 ▪ Launched and signed Real Estate Climate Pledge with Ministry of Climate Change and Environment (MOCCAE) along with 29 real estate & construction
Slide 41: Contact Us
ALDAR INVESTOR PRESENTATION CONTACT US For any further enquiries please contact: Pamela Chahine Head of Investor Relations Tel: +971 (0)2 810 6585 Email: pchahine@aldar.com Omar Nashaat Investor Relations Tel: +971 (0)2 810 6237 Email: onashaat@aldar.com 41
Slide 42: 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