Al Dar Properties · ADX:ALDAR
Al Dar Properties — FY2017 Earnings Presentation
23 slides from Al Dar Properties's earnings presentation, Feb 15, 2018
Slide 1: Full Year 2017 Results Presentation
FULL YEAR 2017 RESULTS PRESENTATION 15 February 2018 www.aldar.com #aldar #fy17 Aldar Properties @aldartweets aldar_properties
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: A Successful Year
A SUCCESSFUL YEAR Talal Al Dhiyebi, Chief Executive Officer
Slide 4: 2017 at a Glance
2017 AT A GLANCE Launch and sale of The Bridges on Launch and sale of Water’s Edge Completion of International Commenced handover of Ansam Reem Island on Yas Island Tower acquisition and Al Hadeel OPERATIONAL HIGHLIGHTS FINANCIAL HIGHLIGHTS • AED 3.5 billion full year development sales value • AED 6
Slide 5: 2017 Development Highlights
2017 DEVELOPMENT HIGHLIGHTS DEVELOPMENT SALES ACTIVITY • Development sales value of AED 3.5 billion • Strong Q4 – AED 1.1 billion across over 600 units, driven by sales at Water’s Edge and West Yas • 1,900 units launched in 2017 – ahead of 1,500 unit guidance • 83% sold across all Aldar units launch
Slide 6: Clear Development Pipeline
CLEAR DEVELOPMENT PIPELINE Meera: 408 units Al Merief: 281 units Nareel: 161 units The Bridges: 1,272 units NAREEL AND AL MERIEF MEERA THE BRIDGES Entering final stages of Construction progress on- Early works underway with construction track main works to commence in Handover from Q1 2018 Handover
Slide 7: Development Outlook
DEVELOPMENT OUTLOOK • Consistent track record of successful development launches • 83% sold across all units launched – AED 4 billion sales back log as at 31 December 2017 • Success of The Bridges and Water’s Edge demonstrates Aldar is launching the right product into the market • Near-term focus to
Slide 8: Asset Management
ASSET MANAGEMENT Jassem Busaibe, Chief Investment Officer
Slide 9: Asset Management Highlights
ASSET MANAGEMENT HIGHLIGHTS RESIDENTIAL OFFICE • Occupancy remained stable at 91% as at • Recently acquired 39,000 sqm NLA 31 December 2017 International Tower incorporated into portfolio • Bulk tenancies represents 36% • Occupancy stands at 88% as at 31 December 2017 – International Tower currently
Slide 10: Asset Management Outlook
ASSET MANAGEMENT OUTLOOK • 2017 NOI met despite challenging market conditions • Resilient and diverse asset base performance throughout 2017 • Remain committed to growth – increase investment plan from AED 3 billion to AED 5 billion • Focus on near-term NOI growth • Single-digit NOI growth for 2018
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS Greg Fewer, Chief Financial Officer
Slide 12: Underlying Business Driving Performance
UNDERLYING BUSINESS DRIVING PERFORMANCE Shams plots: AED 524m ARB plot: AED 813m Underlying growth¹ +26% YoY 6,237 (1,337) 204 6,181 1,078 103% increase YoY driven by construction progress on projects under development 2016 FY One-off land sales Property development Other 2017 FY 42.3% 43.0% GPM 136
Slide 13: Financial Statements – Profit and Loss
FINANCIAL STATEMENTS – PROFIT AND LOSS AED millions Q4 2017 Q4 2016 2017 FY 2016 FY Revenues 1,869 1,411 6,180 6,237 Direct costs (1,096) (889) (3,525) (3,598) Gross profit 773 552 2,655 2,639 Gross profit Margin 41% 37% 43% 42% SG&A expenses (143) (112) (407) (404) Depreciation and Amortization (48
Slide 14: Dividend Policy and Recommendation
DIVIDEND POLICY AND RECOMMENDATION Asset management Development business business Pay-out factor Distributable free cash flow Realised profit Policy Range 65-80% 20-40% Net operating income Upon completion and handover of Methodology/ key drivers Less: Interest expense Maintenance capex + developmen
Slide 15: Financial Debt Policies
FINANCIAL DEBT POLICIES AM business DM business Debt policy Investment Properties and Operating Build-to-sell businesses including IPUD¹ <25% LTV 35-40% LTV Costs incurred + land Gross debt as at 31 Dec 17 AED 5.9 billion AED 0.1 billion Group: AED 6.0 billion (33% LTV) (4% LTV) Debt facilities • Ba
Slide 16: Summary
SUMMARY DEVELOPMENT MANAGEMENT FINANCIAL • Success of Water’s Edge and The Bridges – • Strong underlying financial performance during exceeded sales guidance 2017 • 2018 focus remains on underserved mid-market • Balancing our commitment to shareholder returns with growth opportunities • Development
Slide 17: Appendix
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Slide 18: Development Summary Table – 31 Dec 17
DEVELOPMENT SUMMARY TABLE – 31 DEC 17 Launch Q4 2017 2017 FY Total as at 31 Dec 2017 * Sold unit Revenue Expected Project Location Recognition Sold Sold unit sales Sold Sold unit sales Sold Units Revenue Revenue Date sales value % sold recognition completion units ¹ value (AEDm) ¹ units ¹ value (AED
Slide 19: Financial Statements – Balance Sheet
FINANCIAL STATEMENTS – BALANCE SHEET As at As at AED millions 31 Dec 2017 31 Dec 2016 Property, plant and equipment 2,931 2,986 Investment properties 16,077 15,773 Development work in progress 1,477 1,298 Inventory 2,593 2,449 Receivables 5,353 5,263 Cash 6,885 6,696 Other Assets 1,082 1,096 Total A
Slide 20: Quarterly Segmental Analysis
QUARTERLY SEGMENTAL ANALYSIS Q4 2017 recurring revenues of AED 796 million (Q4 2016: AED 787 million, Q3 2017: AED 666 million) ¹ Q4 2017 Segmental Revenue Performance AED Millions 672 543 493 445 439 421 426 352 343 183 175 92 26 28 23 Investment Properties Hospitality & Leisure Adjacent Businesses
Slide 21: Full Year Segmental Analysis
FULL YEAR SEGMENTAL ANALYSIS 2017 FY recurring revenues of AED 2,851 million (2016 FY: AED 2,945 million) ¹ 2,387 2,128 2017 FY Segmental Revenue Performance 1,723 1,819 AED Millions 1,674 1,371 506 540 150 119 Investment Properties Hospitality & Leisure Adjacent Businesses Development Management Pr
Slide 22: Government Transactions
GOVERNMENT TRANSACTIONS Remaining Remaining cash inflows P&L events Transaction (AEDm) 2018 2019 Total Other income Sale of Al Raha Beach Land ¹ 285 190 475 - Infrastructure recoverables ² 363 256-535 619-898 201-480³ 648 446-725 1,094-1,373 201-480 ¹ Al Raha Beach land plot handed over in Q3 2016 w
Slide 23: Thank You
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