Al Dar Properties · ADX:ALDAR
Al Dar Properties — H1 2024 Earnings Presentation
47 slides from Al Dar Properties's earnings presentation, Jul 29, 2024
Slide 1: H1 2024 Results Presentation
H1 2024 RESULTS PRESENTATION Aldar Properties 29 July 2024
Slide 2: H1 2024 Highlights
H1 2024 HIGHLIGHTS H1 2024 Results Presentation 29 July 2024
Slide 3: H1 2024 Executive Summary
H1 2024 EXECUTIVE SUMMARY Group ▪ Cross-platform growth driven by ongoing recognition of development revenue backlog, record development sales, contributions from recurring income portfolio Revenue EBITDA Net Profit1 both from organic and recent acquisition ramp up contributions AED 10.9bn AED 3.9bn
Slide 4: 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 5: 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 Revenue1 (AED mn) H1 2024 - Key Highlights +30% AED 7.6bn D-Hold Pipeline 5,759 AED 5bn - Abu Dhabi, UAE (2025-2027) • 2 Grade A towers w/Mubadala
Slide 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 12: Q&A
Q&A H1 2024 Results Presentation 29 July 2024
Slide 13: Group
GROUP H1 2024 Results Presentation 29 July 2024
Slide 14: Q2/H1 2024 Group Financial Highlights
Q2/H1 2024 GROUP FINANCIAL HIGHLIGHTS Sustained growth driven by ongoing execution of development revenue backlog, record development sales and contributions from recurring income portfolio (AED mn) Q2 24 Q2 23 Var H1 24 H1 23 Var Revenue (AED mn) Revenue 5,303 3,240 64% 10,918 6,305 73% +73% 14,161
Slide 15: H1 2024 Group Balance Sheet
H1 2024 GROUP BALANCE SHEET Strong balance sheet position supported by prudent capital management and robust governance Balance Sheet Leverage (AED mn) 30 June 2024 31 Dec 2023 Aldar Investment Aldar Development Property, plant and equipment 6,633 6,513 Outstanding Debt1 ▪ Sukuk: AED 6.9bn Investmen
Slide 16: Aldar Development
ALDAR DEVELOPMENT H1 2024 Results Presentation 29 July 2024
Slide 17: Aldar Development Q2/H1 2024 Financial Performance
ALDAR DEVELOPMENT Q2/H1 2024 FINANCIAL PERFORMANCE AED mn Q2 24 Q2 23 Var H1 24 H1 23 Var AED mn Q2 24 Q2 23 Var H1 24 H1 23 Var Group Sales 7,703 7,027 10% 14,016 11,576 21% UAE 6,832 6,397 7% 12,947 10,600 22% International 870 630 38% 1,069 976 9% Gross Profit 1,146 821 40% 2,433 1,524 60% Egypt
Slide 18: UAE Landbank Overview
UAE LANDBANK OVERVIEW 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 Land Area 60.7mn sqm GFA 8.8mn sqm2 Yas Island Land Area 1.7mn sqm GFA 1.7mn sqm ▪ Large
Slide 19: UAE Development Projects Pipeline
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 Year Units Units Units (AED mn) (sqm) sold price/sqm2 completion Date3 (AED mn) (A
Slide 20: Aldar Projects
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-Dec-22 Work New 31-Mar-23 Work New 30-Jun-23 Work New 30-Sep-23 Work New 31-Dec-
Slide 21: Egypt – SODIC
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 23 H1 23 H1 24 USD 724mn USD 1,128mn USD 323mn Units sold Landbank +167% 2,873 21
Slide 22: UK - London Square (1/3) - Overview
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 London (and the Southeast) for sale to Equity Value Enterprise Value EV/TGAV private
Slide 23: UK - London Square (2/3)
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, White City 6 Zone 2 5 Westminster Tower, Albert Embankment Zone 1+2 4 6 Stratfor
Slide 24: UK - London Square (3/3)
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 & warehouse buildings o Redevelopment of existing commercial tower in premium Riverside l
Slide 25: Aldar Investment
ALDAR INVESTMENT H1 2024 Results Presentation 29 July 2024
Slide 26: Aldar Investment Q2/H1 2024 Financial Performance
ALDAR INVESTMENT Q2/H1 2024 FINANCIAL PERFORMANCE AED mn Q2 24 Q2 23 Var H1 24 H1 23 Var AED mn Q2 24 Q2 23 Var H1 24 H1 23 Var Recurring Revenue1 1,606 1,244 29% 3,236 2,491 30% Adj. EBITDA1,2 626 499 25% 1,319 1,036 27% Investment Properties2 (IP) 568 532 7% 1,123 1,063 6% Investment Properties 41
Slide 27: Investment Properties Overview
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% Occupancy Excluding AMT 97% 96% 89% 94% WAULT (yrs) 3.6 2.5 3.9 4.3 H1 2024 Revenue (AEDmn) 425 (+1
Slide 28: Investment Properties (1/4) - Commercial
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, DIC Abu Dhabi, Yas Island ADGM JV with Mubadala – 6 Falak Yas Place 4 Grade A towers 2 Grade A t
Slide 29: Investment Properties (2/4) – Residential
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 units sold AED 240mn AED 157mn AED 118mn AED mn FY 22 FY 23 Var H1 23 H1 24 Var FY 22 H1 23 FY 23 H
Slide 30: Investment Properties (3/4) – Retail
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 Al Hamra Mall Abu Dhabi, Lagoons Yas Mall Collection GLA 27k sqm – no change Community retail GLA 2
Slide 31: Investment Properties (4/4) – Logistics
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 Park - 3 modular Abu Dhabi Business Hub 7 Central Grade A build-to-suit facility buildings GLA 166k s
Slide 32: Hospitality & Leisure (1/2)
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 into RAK Key assets: ▪ Acquisitions in RAK: ▪ W Yas Island ▪ Radisson Blu − Rixos Bab Al Bahr ▪ Crown
Slide 33: Hospitality & Leisure (2/2)
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 23 Var H1 23 H1 24 Var -2% Occupancy 72% 70% -3% 69% 73% 6% 208 181 178 ADR (AED) 509 626 23% 589
Slide 34: Aldar Education (1/2)
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 growth YoY driven by acquisition of Kent College & Virginia British Academy in 2023 ( 3% excluding Ken
Slide 35: Aldar Education (2/2)
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 9 10 11 AY20/21 AY21/22 AY22/23 AY23/24 FY 21 FY 22 FY 23 H1 23 H1 24 Operated Managed Operated s
Slide 36: Aldar Estates (1/2)
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 merged with Eltizam Asset Management Group − Eltizam is owned by IHC & ADNEC Group (~58k units under
Slide 37: Aldar Estates (2/2)
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 24 Facility Management 42% Adj. EBITDA (AED mn) +160% 199 155 92 58 60 FY 21 FY 22 FY 23 H1 23 H1 2
Slide 38: Segmental Breakdown
SEGMENTAL BREAKDOWN H1 2024 Results Presentation 29 July 2024
Slide 39: Segmental Breakdown: Q2 2024 vs Q2 2023
SEGMENTAL BREAKDOWN Q2 2024 vs Q2 2023 Revenue (AED mn) 2,854 1,522 431 532 568 562 288 349 246 248 203 290 158 159 18 26 Property Dev. Project Mgmt. Services International Investment Properties Hospitality & Leisure Education Estates Others & Sales Q2 23 Q2 24 EBITDA (AED mn) 930 832 566 611 100 13
Slide 40: Segmental Breakdown: H1 2024 vs H1 2023
SEGMENTAL BREAKDOWN H1 2024 vs H1 2023 Revenue (AED mn) 6,099 2,973 738 1,063 1,123 1,115 577 684 335 529 546 402 552 312 34 49 Property Dev. Project Mgmt. Services International Investment Properties Hospitality & Leisure Education Estates Others & Sales H1 23 H1 24 EBITDA (AED mn) 1,975 1,272 993
Slide 41: 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] 41
Slide 42: 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 43: Appendix
APPENDIX H1 2024 Results Presentation 29 July 2024
Slide 44: 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 45: 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 46: 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 47: 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