Al Dar Properties · ADX:ALDAR
Al Dar Properties — Aldar Investment Properties — Debt Investor Presentation (March 2025)
37 slides from Al Dar Properties's debt investor presentation, March 2025
Slide 1: Fixed Income Investor Presentation
FIXED INCOME INVESTOR PRESENTATION Aldar Investment Properties March 2025
Slide 2: Table of Contents
CONFIDENTIAL TABLE OF CONTENTS 01 Introduction and Background 3 02 Business Overview 11 03 Financial Overview 17 04 Green Finance Framework 21 A1 Operating Environment 31 A2 Financial Statements 36 AIP Fixed Income Investor Presentation 2
Slide 3: Introduction and Background
1. INTRODUCTION AND BACKGROUND
Slide 4: Aldar Properties Diversified Business Model
ALDAR PROPERTIES DIVERSIFIED BUSINESS MODEL1 (31 DEC 2024) Leading real estate developer, operator and asset manager with two core businesses: Aldar Development & Aldar Investment Revenue USD 6.3bn MSCI Index BBB Market Cap USD 16.4bn EBITDA USD 2.1bn DJSI 61 Moody’s Credit Rating Baa2 Net Profit US
Slide 5: Aldar Investment Properties Has an Established Track Record
CONFIDENTIAL ALDAR INVESTMENT PROPERTIES HAS AN ESTABLISHED TRACK RECORD Aldar Investment Properties – Highlights Region’s largest diversified real estate investment company with highest non-GRE credit rating at 1 Baa1 Recurring revenues of USD 615mn in FY 2024 (USD 580mn in 2023) with visible growt
Slide 6: Largest Diversified Real Estate Ownership Platform in the Region
LARGEST DIVERSIFIED REAL ESTATE OWNERSHIP PLATFORM IN THE REGION Aldar Investment Properties LLC ("AIP"), rated Baa1 with stable outlook by Moody’s, owns and operates a diverse and high-quality property portfolio across the UAE, predominantly in Abu Dhabi AIP owns stable and recurring revenue produc
Slide 7: AIP Shareholding Structure
AIP SHAREHOLDING STRUCTURE AIP Shareholders Abu Dhabi’s largest diversified One of the largest asset asset management and real managers serving many of the estate company world’s most prominent investors 88.1% 11.9% Strong corporate governance Largest diversified real estate investment with seven bo
Slide 8: AIP Flagship Assets
AIP FLAGSHIP ASSETS Diverse portfolio across commercial, residential, retail and logistics segments COMMERCIAL RESIDENTIAL RETAIL LOGISTICS ADGM Towers Al Rayyana Yas Mall Abu Dhabi Business Hub ▪ Low-rise development ▪ 3rd largest mall in the UAE ▪ 4 Grade-A commercial buildings ▪ Strategically loc
Slide 9: Strong Relationship with the Government of Abu Dhabi
STRONG RELATIONSHIP WITH THE GOVERNMENT OF ABU DHABI Aldar Properties PJSC originally Highest rated sovereign in spun-out of Mubadala to MENA activate real estate investment in Aa2/AA/AA (all stable) Abu Dhabi Moody’s/S&P/Fitch 100% Government is a sizeable / long One of Abu Dhabi’s term strategic s
Slide 10: Abu Dhabi Real Estate Market Strengths
ABU DHABI REAL ESTATE MARKET STRENGTHS Strategic federal law changes to enhance UAE’s competitiveness through long-term visas and 100% foreign ownership Abu Dhabi government directly and Strong macro fundamentals with one of through GREs remains a key tenant the highest GDP/capita levels in the worl
Slide 11: Business Overview
2. BUSINESS OVERVIEW
Slide 12: Portfolio Overview
PORTFOLIO OVERVIEW Commercial Residential Retail Logistics No. of assets 13 13 35 3 Gross Leasable area / No. of 429k sqm 7,325 units 518k sqm 240k sqm Units Occupancy 98% 99% 90% 89% Weighted Average Unexpired 3.6 years 2.3 years 4.0 years 3.9 years Lease Term (“WAULT”) GAV (USD mn 2,492 1,471 2,89
Slide 13: Acquisition Strategy
ACQUISITION STRATEGY Pursuing portfolio growth opportunities through… …while adhering to 4 key principles… 01 Acquiring high quality income generating assets (from Aldar Properties PJSC and/or Balancing longer third-party entities) leases, providing Limiting certainty, while concentration shorter le
Slide 14: Recent Developments
RECENT DEVELOPMENTS March 2019: February 2022: July 2022: 2023: 2024: Sold Al Murjan June 2019: March 2021: Acquired Al Hamra Acquired 4 Grade-A Acquired the freehold Acquired “6 Falak”, a newly Tower for USD 79mn Acquired full ownership of Acquired 636 Mall in Ras Al commercial buildings interest i
Slide 15: High Quality and Diversified Tenant Mix
HIGH QUALITY AND DIVERSIFIED TENANT MIX Key Highlights Examples of Tenants Lease Tenor Low tenant concentration risk Within 1 year Over 5 years Reputable “sticky” tenants (majority are 21% 28% GREs or international entities) Mostly bulk tenants leasing large spaces 2 to 5 years 51% High tenant renew
Slide 16: Leasing Strategy Protects & Grows Rental Income
LEASING STRATEGY PROTECTS & GROWS RENTAL INCOME AIP’s tenancy contract structure ensures current income is protected, including no termination clauses on majority of leases, and future income grows via contracted rest escalations ✓ ✓ ✓ Active Tenant Typical lease terms Lease contracts management, wi
Slide 17: Financial Overview
3. FINANCIAL OVERVIEW
Slide 18: Recurring Revenue Stream with Long Average WAULT
RECURRING REVENUE STREAM WITH LONG AVERAGE WAULT Key Messages Revenue by Segment ✓ Recurring Revenues (USD 615mn in FY 2024): AIP revenues are underpinned by the strong performance of ADGM office towers and Yas Mall, improved occupancy Logistics across the residential portfolio, growth in rental rat
Slide 19: Robust Balance Sheet with Low Debt and Resilient Asset Valuation
ROBUST BALANCE SHEET WITH LOW DEBT AND RESILIENT ASSET VALUATION Prudent funding strategy with an LTV policy up to 40% of GAV Total Debt & Total Assets (USDbn) Liquidity Outstanding Debt ▪ Sukuk: USD 1.9bn Total debt Total assets LTV (31 Dec. 24) ▪ Bank: USD 0.4bn 7.5 7.8 LTV (31 Dec. 24) 29% 7.2 Le
Slide 20: Conservative Leverage Metrics & High Interest Coverage
CONSERVATIVE LEVERAGE METRICS & HIGH INTEREST COVERAGE Interest Coverage Leverage Ratios Secured Debt to Total Assets High interest coverage (3.5x in FY 2024) with contracted long- Leverage ratios expected to stabilize as rental income Secured debt to Total Assets ratio has improved over time and te
Slide 21: Green Finance Framework
4. GREEN FINANCE FRAMEWORK
Slide 22: Aldar's Green Finance Framework Overview
ALDAR’S GREEN FINANCE FRAMEWORK OVERVIEW Aldar has established its Green Finance Framework in line with its broader sustainability commitment The Framework has been Key Framework Highlights assessed by Sustainalytics to be aligned with sustainable finance market standards and best practice, primaril
Slide 23: Aldar's Green Finance Framework in Detail
ALDAR’S GREEN FINANCE FRAMEWORK IN DETAIL Aldar’s Framework is aligned with the four core components of ICMA’s GBP and LMA’s GLP Use of Proceeds Process for Project Evaluation and Selection Project Category Eligibility Criteria Members Projects Investment in new or existing commercial or residential
Slide 24: Second Party Opinion from Sustainalytics
SECOND PARTY OPINION FROM SUSTAINALYTICS Aldar’s Green Finance Framework has a Second Party Opinion from Sustainalytics Credible and impactful and aligns with the four core components of GBP 2021 and GLP 2023 Alignment ▪ Use of Proceeds – aligned with GBP / GLP with the ▪ Project Evaluation and Sele
Slide 25: Aldar's Green Sukuk Allocation Reports
ALDAR’S GREEN SUKUK ALLOCATION REPORTS Aldar has fulfilled its annual reporting commitments for the Green Sukuks issued in 2023 and 2024 Green Sukuk Issuances and Reports Aldar’s Eligible Green Projects • Aldar has published the Green Sukuk Allocation Reports for the • The Net Proceeds of each of Al
Slide 26: 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 27: FY 2024 Sustainability & Community Outreach Highlights
FY 2024 SUSTAINABILITY & COMMUNITY OUTREACH HIGHLIGHTS CREATING SUSTAINABLE PLACES ▪ Achieved 4% decrease in energy consumption (2024) for existing asset portfolio (year-on-year) ▪ Achieved 7% reduction in water consumption (2024) for existing asset portfolio (year-on-year) ▪ Achieved 32% improvemen
Slide 28: 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 29: 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] Salma Laalej Vice President Tel: +971 (0)2 810 6504 Email: [email protected]
Slide 30: 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
Slide 31: Appendix 1: Operating Environment
APPENDIX 1 OPERATING ENVIRONMENT
Slide 32: One of the Most Attractive & Stable Investment Destinations Globally
CONFIDENTIAL ONE OF THE MOST ATTRACTIVE & STABLE INVESTMENT DESTINATIONS GLOBALLY Abu Dhabi presents a unique opportunity to earn one of the highest spreads to sovereign returns on institutional-grade real estate in AA-rated USD pegged economy ▪ Abu Dhabi contributes to the majority of the UAE’s GDP
Slide 33: Positioned for Significant Growth
POSITIONED FOR SIGNIFICANT GROWTH DIVERSIFIED COMMITMENT TO BOLD FISCAL AGENDA ADVANCING PPP / ECONOMY SUSTAINABILITY AND PRIVATIZATION POLICY REFORMS AGENDA Investments beyond oil Through Dubai Clean Increasing local residency, Significant opportunity for with growth in sectors such Energy Strategy
Slide 34: Bold Fiscal Agenda and Policy Reforms
CONFIDENTIAL BOLD FISCAL AGENDA AND POLICY REFORMS In addition to supportive macro fundamentals, Abu Dhabi is underpinned by progressive policy / legislative reform and structural attributes Federal law changes to Fiscal stimulus to support Number of Key Initiatives and Maturation of real estate enh
Slide 35: UAE – Strong Growth Prospects Despite Global Headwinds
CONFIDENTIAL UAE – STRONG GROWTH PROSPECTS DESPITE GLOBAL HEADWINDS Latest IMF World economic outlook report revised UAE growth forecast upwards while downgrading global forecasted growth 2025 GDP Growth Forecast(%) 2023 2024 Estimate 2025 Forecast 5.1% 4.4% 4.2% 4.2% 3.9% 4.0% 3.6% 3.3% 3.2% 3.2% 2
Slide 36: Appendix 2: Financial Statements for Aldar Investment Properties
APPENDIX 2 FINANCIAL STATEMENTS FOR ALDAR INVESTMENT PROPERTIES
Slide 37: Income Statement, Cashflow Statement, Balance Sheet & Key Ratios (Summary)
INCOME STATEMENT, CASHFLOW STATEMENT, BALANCE SHEET & KEY RATIOS OF ALDAR INVESTMENT PROPERTIES (SUMMARY) Income Statement (USD mn) 2020 2021 2022 2023 2024 Revenue 409 419 504 580 615 Finance income 2 1 7 20 24 Finance cost (72) (66) (88) (129) (132) Net finance cost (71) (65) (81) (109) (107) Depr
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