Al Dar Properties · ADX:ALDAR
Al Dar Properties — Arqaam Capital MENA Investors Conference 2017
34 slides from Al Dar Properties's conference presentation, September 2017
Slide 1: Arqaam Capital MENA Investors Conference
ARQAAM CAPITAL MENA INVESTORS CONFERENCE SEPTEMBER 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: Aldar at a Glance
ALDAR AT A GLANCE • Leading Abu Dhabi developer behind the Emirate’s most iconic and complex projects 23,000 residential AED 18.2¹ billion • Ferrari World, Yas Marina F1 circuit, World Trade units delivered to market cap Centre, The Gate Towers, Yas Island, Al Raha Beach date and Shams Abu Dhabi inf
Slide 4: Business Overview
BUSINESS OVERVIEW Adjacent Developer Asset Manager businesses Education 75 million sqm 1,500 unit off- AED 18 billion AED 1.6 billion (Aldar land bank plan launch cycle assets NOI (2017E) Academies) Features Property and Target 40% Focus on key 6.1 million Diverse revenue facilities growth in NOI by
Slide 5: Execution of Strategy
EXECUTION OF STRATEGY Maximise ✓ NOI growth from AED 0.7bn in 2013 value of to AED 1.6bn 2016 recurring ✓ AED 18 billion asset valuation revenue ✓ AED 3 billion investment growth plan assets committed ✓ 10 developments launched into key segments ✓ 4,900 units launched into off-plan sales market ✓ 1,
Slide 6: Key Messages
KEY MESSAGES Strong development business • 1,500 units per year launch guidance – AED 3 billion sales value target in 2017 • Destination development around Yas Island, Shams Abu Dhabi and Al Raha Beach • Tapping into market demand – high quality, mid-market residential High quality, diverse asset ma
Slide 7: Abu Dhabi Macro Overview
ABU DHABI MACRO OVERVIEW • Strong ‘AA’ rated economy • Net assets 282% of GDP – one of the highest globally1 • GDP per capita $75k2 • Government debt 3.6% of GDP1 • C.6% of global oil reserves • Low oil prices driving fiscal reform and operational efficiency • Increased non-oil net revenues from rem
Slide 8: Q2 2017 Real Estate Market Overview
Q2 2017 REAL ESTATE MARKET OVERVIEW Residential and hospitality saw a decline, while retail and office remained relatively stable Q2 2016 Q2 2017 Residential Hotel Office Office Rental Rents Rental Rents Growth Falling Growth Falling Residential Slowing Slowing Hotel* Rental Growth Rents Rental Grow
Slide 9: Development Overview
DEVELOPMENT OVERVIEW Where we stand today • 10 major projects at various stages of development 10 current 4,900 units • 4,900 units currently launched to market to date projects launched • AED 4.1 billion revenue backlog as at 30 Jun 2017 • 2017 development focus on mid-market - 2 development launch
Slide 10: Destination Development – Yas Island
DESTINATION DEVELOPMENT – YAS ISLAND Growing local population Yas Acres • Aldar currently has over 3,000 units under construction • Bring c.10,000 residents onto Yas Island by 2020 • 2,255-unit Water’s Edge development launched NWQ early September – first phase (437 units) sold out Warner Bros West
Slide 11: New Real Estate Law
NEW REAL ESTATE LAW • Introduced from 1 January 2016 – a significant step forward for the Abu Dhabi real estate sector • Key features • Enhanced industry regulation • Mandatory escrow accounts • Title deeds and registry • Strata title • Enhanced protections for off-plan purchasers • Clarity around m
Slide 12: Asset Management Overview
ASSET MANAGEMENT OVERVIEW Diverse NOI contribution (2016E split) Large and diverse asset base • AED 18 billion asset value across retail, residential, office and hotels • Diverse NOI contribution • Strong occupancy performance across asset classes Residential Retail Office, hotels and other Committe
Slide 13: Asset Management Performance
ASSET MANAGEMENT PERFORMANCE 470,00 4,800 204,000 2,500 sqm GLA across 25 Residential units sqm GLA across 7 hotel key rooms retail assets across 10 office assets across 9 hotels developments 94% 90% 92% 78% Yas Mall Jun 2017 residential Jun 2017 office H1 2017 average trading occupancy occupancy oc
Slide 14: AED 3 Billion Investment Plan Fully Committed
AED 3 BILLION INVESTMENT PLAN FULLY COMMITTED • AED 3 billion now fully committed, including 8 assets across residential, retail, office, hotels and schools • 90% investment plan allocated to development projects – achieve higher yield on cost • Achieve AED 300 million stabilised NOI • Continue to m
Slide 15: Capital Structure
CAPITAL STRUCTURE Debt policy • Operating in line with debt policy to maintain 35-40% LTV against the 100% owned investment properties and operating businesses • AED 5.5 billion gross debt as at 30 Jun 17 – no further significant pay down of debt expected • 3.0 years weighted average debt maturity a
Slide 16: Dividend Policy
DIVIDEND POLICY Asset management Development business business Pay-out factor Distributable free cash flow ¹ Realised profit Policy Range 65-80% Discretionary Methodology/ key drivers Net operating income Less: Interest expense + Upon completion of Ansam, Al Hadeel, Al Nareel, Al Merief, Meera, Maya
Slide 17: 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 • 2016 proposed dividend of 11 fils per share • Top-end of distributable free cash flow
Slide 18: Summary
SUMMARY Strong development business • 1,500 units per year launch guidance – AED 3 billion sales value target in 2017 • Destination development around Yas Island, Shams Abu Dhabi and Al Raha Beach • Tapping into market demand – high quality, mid-market residential High quality, diverse asset managem
Slide 19: Appendix
APPENDIX ALL RIGHTS RESERVED
Slide 20: Development Summary Table – 30 Jun 17
DEVELOPMENT SUMMARY TABLE – 30 JUN 17 Project Location Recognition Launch Q2 2017 Total as at 30 Jun 2017 * Expected date Sold Sold unit sales Sold Sold unit Units % sold Revenue Revenue Revenue completion units ¹ value (AEDm) units ¹ sales value launched recognition recognised backlog ¹ (AEDm) ¹ %
Slide 21: Financial Statements – Profit and Loss
FINANCIAL STATEMENTS – PROFIT AND LOSS Q-o-Q Y-o-Y 2017 2016 AED millions Q2 2017 Q2 2016 NB: YTD YTD Q2 2016 included a significant Shams land Revenues 1,354 1,696 2,932 2,928 transaction (Revenue Direct costs (812) (1,003) (1,637) (1,694) AED 524 million and Gross profit 542 693 1,295 1,234 gross
Slide 22: Financial Statements – Balance Sheet
FINANCIAL STATEMENTS – BALANCE SHEET Q-o-Q Y-o-Y As at As at As at As at AED millions 30 Jun 2017 31 Mar 2017 31 Dec 2016 31 Dec 2015 Property, plant and equipment 2,909 2,951 2,986 2,936 Investment properties 15,829 15,770 15,773 15,570 Development work in progress 1,470 1,391 1,298 2,745 Inventory
Slide 23: Government Transactions
GOVERNMENT TRANSACTIONS Remaining Remaining cash inflows P&L events Transaction (AEDm) H2 2017 2018 Total Other income Sale of F1 Race Track 348 - 348 - Sale of Al Raha Beach Land ¹ 190 475 665 - Shams Infrastructure Reimbursement ² 300 - 300 300 838 475 1,313 300 Infrastructure recoverables n/a n/a
Slide 24: Quarterly Segmental Analysis
QUARTERLY SEGMENTAL ANALYSIS Q2 2017 recurring revenues of AED 666 million (Q2 2016: AED 706 million, Q1 2017: AED 723 million) ¹ Q2 2017 Segmental Revenue Performance 783 AED Millions 534 419 425 429 419 429 360 320 101 112 131 28 41 27 60 5 4 Investment Properties Hospitality & Leisure Operative V
Slide 25: Half Year Segmental Analysis
HALF YEAR SEGMENTAL ANALYSIS H1 2017 recurring revenues of AED 1,389 million (H1 2016: AED 1,455 million) ¹ 2017 YTD Segmental Revenue Performance AED Millions 1,063 963 848 866 779 611 232 258 9 66 101 64 Investment Properties Hospitality & Leisure Operative Villages Adjacent Businesses Development
Slide 26: 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 27: Business Overview
BUSINESS OVERVIEW Development Asset management Adjacent Businesses Property Development Retail Schools • Current projects – Ansam, Hadeel, • 470,000 sqm GLA across 27 assets • Aldar Academies – 100% owned Nareel, Merief, Meera, Mayan, Yas Residential Property & Facilities Management Acres, The Bridg
Slide 28: Development Projects Focused Around Destinations
DEVELOPMENT PROJECTS FOCUSED AROUND DESTINATIONS Project Location Launch Details Expected completion Announced Launched Sold at Q2’17 Ansam Yas Island 2014 Prime apartments and townhouses 2017 547 547 93% Hadeel Al Raha Beach 2014 Prime apartments and townhouses 2017 233 233 92% Nareel Abu Dhabi Isl
Slide 29: Residential Portfolio
RESIDENTIAL PORTFOLIO • 4,800 units across 10 developments • 30 Jun 2017 occupancy at 90% • 35% of units on bulk deals • ‘Flight to quality’ remains true – tenants want newer units with better facilities Units split by type Al Rayyana – 1,537 residential units, 100% owned 7% 30% 19% 12% 32% 1-bed 2-
Slide 30: Retail Portfolio
RETAIL PORTFOLIO • Retail strategy to own the local convenience store and destination mall • 470,000 sqm GLA across 25 assets • GLA split between super-regional, big box, community retail and community malls • Reinvesting into existing asset to improve consumer experience • Yas Mall 94% trading occu
Slide 31: Office Portfolio
OFFICE PORTFOLIO • 204,000 sqm GLA across 7 assets • 92% occupancy across portfolio as at 30 Jun 2017 • 77% GLA leased to Government or GRE • Limited renewals over 2017 – sub 5% GLA • Weighted average remaining maturity is 4 years Baniyas Towers – 43,000 sqm GLA Tenant mix Remaining lease maturity 5
Slide 32: Hotel Portfolio
HOTEL PORTFOLIO • 2,536 keys across 9 hotels • Portfolio H1 2017 occupancy outperforms the market - 78% versus 70% (ADTCA) • 90% hotel keys located on Yas Island Viceroy hotel, Yas Island Keys split by type Keys split by location 13% 5% 20% 5% 18% 90% 49% 5-star 4-star 3-star Serviced apartments Yas
Slide 33: Credit Overview
CREDIT OVERVIEW Debt maturity profile 2017-2026 (AED billion) 2.0 2.8 1.4 0.9 0.6 0.4 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 $750m Dec'18 Sukuk Bank loans Undrawns RCFs • Weighted average debt maturity is 3.0 years Credit rating summary (Jun 17) Moody’s Baa2 Feb-17 • c.45% debt is fixed (
Slide 34: Investor Relations Contact
INVESTOR RELATIONS CONTACT Chris Wilson Head of Investor Relations T: +971 2 810 5624 M: +971 56 446 0501 E: [email protected]
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