Al Dar Properties · ADX:ALDAR
Al Dar Properties — Investor Presentation (July 2024)
52 slides from Al Dar Properties's investor presentation, July 2024
Slide 1: Investor Presentation
INVESTOR PRESENTATION Aldar Properties July 2024
Slide 2: Aldar Properties Overview
ALDAR PROPERTIES OVERVIEW Aldar Properties Investor Presentation July 2024
Slide 3: Aldar Properties Diversified Business Model
ALDAR PROPERTIES DIVERSIFIED BUSINESS MODEL1 (31 DEC 2023) Leading real estate developer, operator and asset manager with two core businesses: Aldar Development & Aldar Investment Revenue AED 14.2bn MSCI Index BBB Market Cap AED 42.1bn EBITDA AED 5.1bn DJSI 47 Moody’s Credit Rating Baa2 Net Profit A
Slide 4: Strong Execution on Growth & Expansion Strategy
STRONG EXECUTION ON GROWTH & EXPANSION STRATEGY An Abu Dhabi based company, leveraging the strengths of its 2020 operating model, delivering an elevated platform in terms of scale, efficiencies and diversification in 2023 AED bn 2020 2023 3 -yr CAGR Market Cap 24.8 42.1 19% 3-yr TSR 88% Revenue 8.4
Slide 5: Strong Group Financial Performance
STRONG GROUP FINANCIAL PERFORMANCE Poised for growth through strategic deployment of surplus capital into new asset classes and geographies Revenue (AED bn) Net profit (AED bn) 14.2 11.2 4.4 8.4 8.6 3.1 6.3 7.1 +26% 1.9 1.9 1.9 2.3 YoY +40% YoY 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022
Slide 6: Core Business Growth Drivers
CORE BUSINESS GROWTH DRIVERS Strongly positioned to capitalize on Growth & Expansion Strategy Aldar Development Aldar Investment ▪ Become leading destination builder providing exceptional ▪ Grow recurring income portfolio through “Develop-to- experiences Hold” strategy ▪ Diversify product and custom
Slide 7: International Expansion Supports Diversification Strategy
INTERNATIONAL EXPANSION SUPPORTS DIVERSIFICATION STRATEGY Deploying capital and investing into “growth” real state sectors to address relevant long-term trends Long Term Trends “Growth” Real Estate Sectors Benefits to Aldar Winning Cities Homebuilding ▪ Enlarged sales network & client synergies Citi
Slide 8: 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 9: Aldar Development
ALDAR DEVELOPMENT Strong H1 24 EBITDA growth through effective development against sizeable backlog Group Sales (AED bn) Revenue (AED bn) EBITDA (AED bn) 27.9 +21% +94% +94% +77% +21% 8.3 2.5 3.6 7.0 7.5 1.3 0.2 0.7 14.4 1.4 1.5 2.2 14.0 11.6 3.9 3.9 3.9 0.04 3.4 1.1 0.3 1.3 7.2 24.3 1.0 2.2 7.0 0.3
Slide 10: Aldar Investment (1/2)
ALDAR INVESTMENT (1/2) Strong H1 24 Adj. EBITDA growth driven by organic operational performance, expansion of Aldar Estates and prior year acquisitions Revenue (AED mn) +30% 5,759 15 3,236 2,491 60 90 563 4,120 17 3,284 +6% +3% +29% +102% FY 21 FY 22 FY 23 H1 23 IP H&L Education Estates Others H1 2
Slide 11: Aldar Investment (2/2)
ALDAR INVESTMENT (2/2) 2023 acquisitions contributing towards portfolio growth Investment Properties Hospitality & Leisure Education Aldar Estates1 Occupancy 94% Occupancy 73% 30 Schools Property Management Commercial 97% 11 Operated schools Facilities Management Residential 96% ADR AED 613 (+4% YoY
Slide 12: AED 7.6bn D-Hold Pipeline
AED 7.6BN D – HOLD1 PIPELINE AED 5.0bn - Commercial, Retail and Hospitality assets in Abu Dhabi AED 1.6bn – Commercial asset in Dubai AED 1.0bn – Logistics assets in Abu Dhabi & Dubai 2024/2025 2026 2027 H1 2025 H2 2027 Abu Dhabi, Yas Island Abu Dhabi, Al Maryah Island – Financial District Yas Place
Slide 13: Recent Q3 2024 Announcement Highlights
RECENT Q3 2024 ANNOUNCEMENT HIGHLIGHTS Logistics Park in Dubai Commercial entry into Dubai ▪ Part of previously announced AED 1bn logistics commitment ▪ AED 1.8bn commitment ▪ Strategic partnership with DP World to develop: − AED 1.6bn Develop (D-Hold) Grade A Office Tower • Sheikh Zayed Road, near
Slide 14: Robust Group Balance Sheet Supporting Growth
ROBUST GROUP BALANCE SHEET SUPPORTING GROWTH Robust Group liquidity of AED 17.4bn (AED mn) 30 June 24 31 Dec 23 Debt and Facilities (AED bn) Available liquidity (AED bn)1 Debt 14,216 12,079 Free Cash 3.6 Cash 12,686 11,718 Facilities H1 24 Sukuk H1 24 Undrawn Total Equity 39,841 38,183 6.9 7.6 Facil
Slide 15: 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 • 1yr & 3yr TSRs of 31% and 88%, respectively1 • Robust balance sheet with debt well within stipulated LTV policies
Slide 16: 2024 Guidance
2024 GUIDANCE FY 2023 H1 2024 FY 2024 (Actual) (Actual) (Guidance)3 Aldar Group Adj. EBITDA AED 4.5bn AED 3.4bn AED 6.2 to 6.5bn Sales AED 27.9bn AED 14.0bn AED 29 to 31bn Aldar Development EBITDA AED 2.5bn AED 2.2bn AED 4.1 to 4.3bn o/w PMS AED 0.46bn AED 0.23bn AED 0.50 to 0.55bn Aldar Investment
Slide 17: Aldar Development
ALDAR DEVELOPMENT Aldar Properties Investor Presentation July 2024
Slide 18: UAE Landbank Overview (1/2)
Aldar Development Project Management Property Dev & Sales International Services UAE LANDBANK OVERVIEW (1/2) Landbank is spread across key investment zones in Abu Dhabi, Dubai and Ras Al Khaimah Landbank1 Locations Destinations Saadiyat Island Land Area 0.7mn sqm Abu Dhabi GFA 1.8mn sqm 62.1mn sqm L
Slide 19: UAE Landbank Overview (2/2)
Aldar Development Project Management Property Dev & Sales International Services UAE LANDBANK OVERVIEW (2/2) 1 GFA has not been assigned to all landbank 2 GFA assigned only to Al Ghadeer Aldar Investor Presentation 19
Slide 20: UAE Development Projects Pipeline
Aldar Development Project Management Property Dev & Sales International Services UAE DEVELOPMENT PROJECTS PIPELINE Projects under construction, as at 30 June 20241 Revenue Cash to be Launch Total Launched Sold Net Sales value NSA Area Avg sale % Completion Project Location % sold Backlog Collected Y
Slide 21: UAE – Abu Dhabi: Al Fahid Island
Aldar Development Project Management Property Dev & Sales International Services UAE – ABU DHABI Aldar Development Al Fahid Island Acquisition in Abu Dhabi ▪ Land value of AED 2.5bn paid over 5 years ▪ Introduction of unique beachfront offering in Abu Dhabi ▪ 3.4mn sqm island between Yas Island and
Slide 22: UAE – Dubai: JV with Dubai Holding
Aldar Development Project Management Property Dev & Sales International Services UAE - DUBAI Aldar Development JV with Dubai Holding, Dubai ▪ Partnership with Dubai Holding in February 2023 to further extend the growing portfolio and diversified offering 1st masterplan “Haven” launched in October 20
Slide 23: UAE – Ras Al Khaimah: Nikki Beach Residences
Aldar Development Project Management Property Dev & Sales International Services UAE – RAS AL KHAIMAH Aldar Development Nikki Beach Residences ▪ Partnership between Aldar & Nikki Beach Group ▪ 1st launch in November 2023 ▪ Develop 3 branded residential buildings on Al Marjan Island ▪ 1,046 units sol
Slide 24: Aldar Projects
Aldar Development Project Management Property Dev & Sales International Services ALDAR PROJECTS1 Aldar Projects backlog of AED 77.9bn Project Management Backlog Progression (AED bn) 26 82 79 2 78 0 (3) 65 (3) 62 61 2 2 59 (3) 50 (3) 51 45 (3) 31 27 26 (4) 28 79 79 76 76 55 55 34 35 35 32 33 31 29 31
Slide 25: Egypt – SODIC
Aldar Development Project Management Property Dev & Sales International Services EGYPT – SODIC1 Sales performance remains strong despite FX movements Sales (EGP mn) 29,808 Revenue (EGP mn) 9,886 +10% +23% 20,971 7,648 6,922 11,205 3,406 8,801 2,764 8,007 FY 21 FY 22 FY 23 H1 23 H1 24 FY 21 FY 22 FY
Slide 26: UK - London Square (1/3) - Overview
Aldar Development Project Management Property Dev & Sales International Services UK - LONDON SQUARE ( 1/3) - OVERVIEW Premier and leading residential developer in the UK 100% Acquisition (closing date 30 November 2023) Core ‘build-to-sell’, higher margin offering, developing homes across Greater Lon
Slide 27: UK - London Square (2/3)
Aldar Development Project Management Property Dev & Sales International Services UK - LONDON SQUARE ( 2/3) Acquired 7 sites YTD; adding GBP 1.0bn+ GDV to BTS & BTR pipeline 1 Wyvil Road, Vauxhall Zone 1 2 Richmond College campus, Twickenham Zone 5 3 Tite Street, Chelsea Zone 1 4 The Phoenix Academy,
Slide 28: UK - London Square (3/3)
Aldar Development Project Management Property Dev & Sales International Services UK - LONDON SQUARE ( 3/3) Acquired 7 sites YTD; adding GBP 1.0bn+ GDV to BTS & BTR pipeline 1. Wyvil Road, Vauxhall (Zone 1) 5. Westminster Tower, Albert Embankment (Zone 1+2) o Redevelopment of existing office & wareho
Slide 29: Aldar Investment
ALDAR INVESTMENT Aldar Properties Investor Presentation July 2024
Slide 30: Investment Properties - Overview
Aldar Investment Investment Properties Hospitality & Leisure Aldar Education Aldar Estates Others INVESTMENT PROPERTIES - OVERVIEW1 94% occupancy across the portfolio Commercial Residential Retail Logistics Asset disposal No. of assets in Q1 24 14 13 36 3 Leasable area (‘000 sqm) 466 815 521 216 98%
Slide 31: Investment Properties - Apollo Transaction
Aldar Investment Investment Properties Hospitality & Leisure Aldar Education Aldar Estates Others INVESTMENT PROPERTIES - APOLLO TRANSACTION Aldar completed long-term US$ 1.4bn investment transaction with Apollo in 2022 US$ 1.4BN OF LONG-TERM INVESTMENT Land Joint Venture 1 US$ 500mn investment into
Slide 32: Investment Properties (1/4) - Commercial
Aldar Investment Investment Properties Hospitality & Leisure Aldar Education Aldar Estates Others INVESTMENT PROPERTIES (1/4) - COMMERCIAL 2022 2023 2024 2025 2026 2027 Acquisition Acquisition D-Hold D-Hold H2 2022 H2 2027 H1 2024 H1 2025 Abu Dhabi, Al Maryah Island Abu Dhabi, Al Maryah Island Dubai
Slide 33: Investment Properties (2/4) – Residential
Aldar Investment Investment Properties Hospitality & Leisure Aldar Education Aldar Estates Others INVESTMENT PROPERTIES (2/4) – RESIDENTIAL 2022 2023 2024 2025 2026 2027 Acquisition H2 2023 RAK Staff accommodations GLA 14k sqm Strata Sale Program1 2022 2023 H1 2024 169 units sold 123 units sold 95 u
Slide 34: Investment Properties (3/4) – Retail
Aldar Investment Investment Properties Hospitality & Leisure Aldar Education Aldar Estates Others INVESTMENT PROPERTIES (3/4) – RETAIL 2022 2023 2024 2025 2026 2027 Redevelopment H1 2024 Redevelopment D-Hold D-Hold D-Hold H1 2022 H1 2025 RAK H1 2027 Abu Dhabi, Yas Island Abu Dhabi, Noya & Yas Golf A
Slide 35: Investment Properties (4/4) – Logistics
Aldar Investment Investment Properties Hospitality & Leisure Aldar Education Aldar Estates Others INVESTMENT PROPERTIES (4/4) – LOGISTICS 2022 2023 2024 2025 2026 2027 Acquisition Acquisition D-Hold D-Hold H2 2024 H1 2022 H1 2024 H1 2026 Dubai, Jebel Ali, NIP Abu Dhabi Dubai, DIP Dubai Logistics Par
Slide 36: Hospitality & Leisure (1/2)
Aldar Investment Investment Properties Hospitality & Leisure Aldar Education Aldar Estates Others HOSPITALITY & LEISURE (1/2) 3rd largest hospitality owner in the UAE by number of keys HOTELS Hotel portfolio consists of assets from 3 to 5 stars, in addition to hotel apartments In 2022, expansion int
Slide 37: Hospitality & Leisure (2/2)
Aldar Investment Investment Properties Hospitality & Leisure Aldar Education Aldar Estates Others HOSPITALITY & LEISURE (2/2) Revenue (AED mn) H&L Revenue (AED mn) 1,116 +3% Leisure 828 7% Golf Clubs 529 546 4% 433 H1 24 546 Hotels H1 23 H1 24 89% FY 21 FY 22 FY 23 Adj. EBITDA1 (AED mn) 383 FY 22 FY
Slide 38: Aldar Education (1/2)
Aldar Investment Investment Properties Hospitality & Leisure Aldar Education Aldar Estates Others ALDAR EDUCATION (1/2) 2nd largest private school operator in the UAE Operated Schools In 2022, initial investment ▪ Initial AED 1bn investment, adding ~12k seat capacity by AY25/26 • +27% enrolment grow
Slide 39: Aldar Education (2/2)
Aldar Investment Investment Properties Hospitality & Leisure Aldar Education Aldar Estates Others ALDAR EDUCATION (2/2) Ambitious growth plans - through greenfield, brownfield and acquisitions Schools1 Revenue (AED mn) Revenue (AED mn) +29% 30 687 28 536 592 402 20 20 312 13 19 13 18 11 11 389 299 9
Slide 40: Aldar Estates (1/2)
Aldar Investment Investment Properties Hospitality & Leisure Aldar Education Aldar Estates Others ALDAR ESTATES1 (1/2) A leading regional Property & Facility Management Company Facility Management In 2022, ▪ Acquisition of Spark Security & other In 2023, AED 985mn+ Total Orderbook ▪ Aldar Estates me
Slide 41: Aldar Estates (2/2)
Aldar Investment Investment Properties Hospitality & Leisure Aldar Education Aldar Estates Others ALDAR ESTATES1 (2/2) Revenue (AED mn) Revenue Breakdown Valuation & Advisory 6% Integrated +102% Community Services 28% 1,741 1,115 H1 24 748 552 622 Property Management 24% FY 21 FY 22 FY 23 H1 23 H1 2
Slide 42: Europe - Investment in European Private Real Estate Credit
Aldar Investment Investment Properties Hospitality & Leisure Aldar Education Aldar Estates Others EUROPE - INVESTMENT IN EUROPEAN PRIVATE REAL ESTATE CREDIT Strategic partners form a USD 1 billion private credit platform, which will invest in senior secured debt across diverse real estate segments i
Slide 43: Sustainability
SUSTAINABILITY Aldar Properties Investor Presentation July 2024
Slide 44: Aldar Sustainability Strategic Framework & ESG Ratings
ALDAR SUSTAINABILITY STRATEGIC FRAMEWORK & ESG RATINGS Sustainability Purpose Shaping a Better Future We aim to create a business culture where sustainability is at the heart of everything we do, and where the concept of sustainability informs the way we operate, collaborate, innovate and grow. Sust
Slide 45: H1 2024 Sustainability & Community Outreach Highlights
H1 2024 SUSTAINABILITY & COMMUNITY OUTREACH HIGHLIGHTS CREATING SUSTAINABLE PLACES ▪ Achieved 32% improvement in Energy Use Index (EUI) (Q2 2024) on average by design for new developments projects (from baseline) ▪ 100% of new developments in H1 2024 achieved Fitwell rating & 100% of Aldar Developme
Slide 46: Eight Levers to Decarbonise
Eight Levers to Decarbonise 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 c
Slide 47: 2022-2023 Capital Deployed or Committed
2022-2023 CAPITAL DEPLOYED OR COMMITTED Aldar Properties Investor Presentation July 2024
Slide 48: 2023 Capital Committed
2023 CAPITAL COMMITTED c. AED 9bn of capital deployed or committed Aldar Development (c. AED 5.9bn) Aldar Investment (c. AED 3.1bn) Transaction Value (AED mn) Transaction Value (AED mn) Al Fahid land acquisition of 3.4m sqm island between Yas Residential: RAK Staff Accommodation acquisition, Ras Al
Slide 49: 2022 Capital Deployment
2022 CAPITAL DEPLOYMENT c. AED 11.5bn of capital deployed or committed Aldar Development (c. AED 4.1bn) Aldar Investment (c. AED 7.4bn) Transaction Value (AED mn) Transaction Value (AED mn) Acquisition of 6.2m sqm prime land located on 3,6801 Commercial the east side of Saadiyat Island 4 Grade-A com
Slide 50: Appendix
APPENDIX Aldar Properties Investor Presentation July 2024
Slide 51: 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: [email protected] 51
Slide 52: 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