Al Dar Properties · ADX:ALDAR
Al Dar Properties — Investor Day (November 2016)
41 slides from Al Dar Properties's investor day presentation, Nov 14, 2016
Slide 1: Capital Markets Day 14 November 2016
CAPITAL MARKETS DAY 14 NOVEMBER 2016
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: Today's Speakers
TODAY’S SPEAKERS TALAL AL DHIYEBI JASSEM BUSAIBE GREG FEWER CHIEF DEVELOPMENT OFFICER CHIEF ASSET MANAGEMENT OFFICER CHIEF FINANCIAL OFFICER 3
Slide 4: Today's Agenda
TODAY’S AGENDA Development business update featuring • Development project update • Key opportunities Asset Management business update featuring • Yas Mall – 2 years on • Commitment to NOI growth Financial overview featuring • Dividend policy • Balance sheet strength Closing remarks Q&A 4
Slide 5: Development Business Update
DEVELOPMENT BUSINESS UPDATE TALAL AL DHIYEBI – CHIEF DEVELOPMENT OFFICER
Slide 6: Development Overview
DEVELOPMENT OVERVIEW Where we stand today • 7 major projects at various stages of development 7 current 2,780 units • 2,780 units launched since mid 2014 projects launched • 2,120 units sold with a sales value of AED 5.1 billion • AED 4.0 billion revenue backlog as at 30 Sep 2016 • Fully owned land
Slide 7: Development Update – Ansam
DEVELOPMENT UPDATE – ANSAM • 547 unit development on Yas Island, overlooking Yas Links golf course • Launched in Q2 2014 • 90% sold as at 30 September 2016 • 41% revenue recognition to date • Handover to commence from Q3 2017 Construction as at Q3 2016 Ansam schematic impression 7
Slide 8: Development Update – Al Hadeel
DEVELOPMENT UPDATE – AL HADEEL • 233 unit development on Al Raha Beach, located near Al Bandar • Launched in Q2 2014 • 91% sold as at 30 September 2016 • 38% revenue recognition to date • Handover to commence from Q3 2017 Construction as at Q3 2016 Al Hadeel schematic impression 8
Slide 9: Development Update – Nareel
DEVELOPMENT UPDATE – NAREEL • 148 land plot development across two islands, close to Al Bateen • Launched in Q4 2014 • 59% revenue recognition to date • Plot handovers to commence from Q4 2017 Nareel Island, near Al Bateen Nareel Island contractor mobilisation 9
Slide 10: Development Update – Al Merief
DEVELOPMENT UPDATE – AL MERIEF • 281 land plot development in Khalifa City • Launched in Q2 2015 • Fully sold out • Handover to commence from Q4 2017 Al Merief schematic impression Al Merief schematic impression 10
Slide 11: Development Update – Meera
DEVELOPMENT UPDATE – MEERA • 408 unit ‘mid-income’ development on Shams • Launched in Q2 2015 • 90% sold as at 30 Sep 2016 • 27% revenue recognition to date • Expected completion in 2018 Construction progress as at Q3 2016 Meera schematic impression 11
Slide 12: Development Update – Mayan
DEVELOPMENT UPDATE – MAYAN • Development on Yas Island – 512 units launched • 80% sold to date • Enabling works contract recently announced • Expected completion in 2018 Mayan apartment schematic impression Mayan schematic impression, overlooking Yas Links golf course 12
Slide 13: Development Update – Yas Acres
DEVELOPMENT UPDATE – YAS ACRES Development overview • 1,315 villa and townhouse development • Untapped segment in the real estate market - AED 4 million investment-zone 4-bed villa • Expected completion in 2019 Progress to date Yas Acres schematic impression • 3 phases launched to date across April,
Slide 14: Destination Development – Yas Island
DESTINATION DEVELOPMENT – YAS ISLAND Growing local population Yas Acres • Aldar currently has over 3,500 units under development • Bring c.10,000 residents onto Yas Island by 2020 Government – enabling key tourism infrastructure • New projects – Warner Bros theme park Warner Bros NWQ • Existing proj
Slide 15: Key Development Opportunities
KEY DEVELOPMENT OPPORTUNITIES Mid-income opportunity • Success of Meera – 90% sold to date, brought a new price point to Shams • Underserved income brackets remain for residential real estate in Abu Dhabi • Further capacity for mid-income apartments Land sales have featured in the past • As master d
Slide 16: Development Pipeline
DEVELOPMENT PIPELINE Development focused around destinations Product focus on apartments and villas Yas Raha Shams Other Apartments Villas Villa plots Purpose built • Illustrative charts setting out development pipeline 2016-2021 • Development pipeline centered around our three main destinations – Y
Slide 17: Development Business Summary
DEVELOPMENT BUSINESS SUMMARY 2016 highlights • AED 3.0 billion sales value across Aldar developments and West Yas in the first 9 months of 2016 • 84% sold across developments as at 30 Sep 2016 2017 focus • Further Yas Acres phase launches • Mid-income opportunities at Shams Abu Dhabi • Opportunistic
Slide 18: Asset Management
ASSET MANAGEMENT JASSEM BUSAIBE – CHIEF ASSET MANAGEMENT OFFICER
Slide 19: 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 Committed to growth • Track record of delivering gro
Slide 20: Residential Portfolio
RESIDENTIAL PORTFOLIO • 4,800 units across 10 developments • Q3 2016 occupancy at 94% • 33% of units on bulk deals • ‘Flight to quality’ remains true – tenants want newer units with better facilities Al Rayyana – 1,537 residential units, 100% owned Units split by type Split by lease length 7% 3% 30%
Slide 21: 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 Shams Boutik, Shams Abu Dha
Slide 22: Office Portfolio
OFFICE PORTFOLIO • 204,000 sqm GLA across 7 assets • 95% occupancy across portfolio • 77% GLA leased to Government or GRE • Limited renewals over 2016-2018 • Weighted average maturity now stands at 5.25 years Baniyas Towers – 43,000 sqm GLA Tenant mix Remaining lease maturity 5% 17% 19% 45% 32% 60%
Slide 23: Hotel Portfolio
HOTEL PORTFOLIO • 2,536 keys across 9 hotels • Occupancy and ADR continue to outperform market¹ • 76% versus 72% • AED405 versus AED376 • Q4 performance key – F1 event, winter season 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 Se
Slide 24: Yas Mall – Two Years On
YAS MALL – TWO YEARS ON Two years of trading completed • Second year of trading completed in November 2016 • 96% of stores trading today • AED 11 million collected in turnover rent in first trading year Optimisation of retail mix • New retailers signed up to improve retail experience and optimize re
Slide 25: Yas Mall Going Forward
YAS MALL GOING FORWARD Benefactor of Yas Island investment • Emergence of a local population – c.10,000 Yas residents by 2020 • Enhanced Government tourism infrastructure – Warner Bros studio, Ferrari World expansion • Targeted growth in Yas Island visitors – 30 million visitors by 2018 and 48 milli
Slide 26: AED 3 Billion Investment Plan
AED 3 BILLION INVESTMENT PLAN AED 1.1 billion committed to date • Daman House acquired in December 2015 • Al Mamoura school – opened in September 2016 • Repton school – to open for 17/18 academic year • Al Jimi Mall extension – set for 2018 Al Mamoura school, opened in Sep 2016 Investment plan spend
Slide 27: Asset Management Summary
ASSET MANAGEMENT SUMMARY 2016 • Strong performance across asset classes despite softer market conditions • Hotel has been the most challenging sector year-to-date • AED 1.6 billion full year net operating income anchored around Q4 hotel performance • AED 0.8 billion committed to investment plan in 2
Slide 28: Financial Overview and Closing Remarks
FINANCIAL OVERVIEW AND CLOSING REMARKS GREG FEWER – CHIEF FINANCIAL OFFICER
Slide 29: Aldar Today
ALDAR TODAY Developer Asset Manager 75 million 1,500 unit AED 18 billion AED 1.6 billion sqm land bank launch cycle assets NOI (2016E) Features Target 40% Focus on key 6.1 million Diverse growth in NOI destinations approved GFA revenue mix by 2020 Debt policy Currently unlevered 35-40% LTV Dividend
Slide 30: Execution of Strategy
EXECUTION OF STRATEGY NOI growth from AED 0.7bn in 2013 to AED 1.6bn 2016E AED 18 billion assets Maximise AED 3 billion investment growth plan value of recurring revenue assets 7 developments launched since mid-2014 2,800 units launched into off-plan sales market 1,500 unit annual launch
Slide 31: Debt Policy Unchanged
DEBT POLICY UNCHANGED Debt policy • Operating in line with debt policy to maintain 35-40% LTV against the 100% owned investment properties and operating businesses • Gross debt unchanged at AED 6 billion – no further significant pay down of debt expected • Debt capacity will grow as we build out rec
Slide 32: 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 33: Balance Sheet Remains Solid
BALANCE SHEET REMAINS SOLID Position of strength • AED 6.1 billion cash as at 30 Sep 2016 • Gross debt in line with debt policy at AED 6.0 billion • AED 600 million of legacy land receivables remaining Capex as at 30 September 2016 • AED 1.8 billion legacy capex – infrastructure and completed IP ass
Slide 34: In Summary
IN SUMMARY Development business track record • Development strategy focused around destination development and untapped segments in the market • Maintain 1,500 units per year launch guidance Strong asset management business • Diverse recurring revenue business resilient performance despite softer ma
Slide 35: Q&A
Q&A ALL RIGHTS RESERVED
Slide 36: Appendix
&, =¢ APPENDIX ALL RIGHTS RESERVED
Slide 37: Government Transactions
GOVERNMENT TRANSACTIONS Remaining Remaining cash inflows P&L events Transaction (AEDm) Q4 2016 2017 2018 Total Other income Sale of F1 Race Track 348 348 - 696 - Sale of Al Raha Beach Land ¹ 95 380 475 950 - Shams Infrastructure Reimbursement ² - 300 - 300 724 443 1,028 475 1,946 724 ¹ Al Raha Beach
Slide 38: 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 and Residential Property & Facilities Management Yas Acres • 4,800
Slide 39: Development Summary Table – 30 Sep 2016
DEVELOPMENT SUMMARY TABLE – 30 SEP 2016 Project Location Launch Q3 2016 Total as at 30 Sep 2016 Expected date Sold Sold unit Sold Sold unit Units % sold Revenue Revenue Revenue completion units ¹ sales value units ¹ sales value launched recognition % recognised backlog (AEDm) ¹ (AEDm) ¹ (AEDm) Ansam
Slide 40: 2016 Year-to-Date Segmental Analysis
2016 YEAR-TO-DATE SEGMENTAL ANALYSIS 2016 YTD recurring revenues of AED2,160 million (2015 YTD: AED2,063 million) ¹ 2,044 2016 YTD Segmental Revenue Performance AED Millions 1,293 1,201 945 877 663 366 421 209 88 89 91 Investment Properties Hospitality & Leisure Operative Villages Adjacent Businesse
Slide 41: Thank You
THANK YOU ALL RIGHTS RESERVED