Al Dar Properties · ADX:ALDAR
Al Dar Properties — Aldar Investment Properties — Non-Deal Roadshow (July 2019)
39 slides from Al Dar Properties's roadshow presentation, July 2019
Slide 1: Aldar Investment Properties LLC Investor Presentation – July 2019
PROPERTIES LLC INVESTMENT ALDAR Investor Presentation – July 2019 Aldar Investment Properties LLC (“Aldar Investments”) 1
Slide 2: Contents
Section 1 Introduction to Aldar Investments 4 Section 2 Business Overview 10 Section 3 Financial Overview 20 Appendix 1 Detailed Asset Overview 24 CONTENTS Appendix 2 Operating Environment 30 Appendix 3 Financial Statements 36 Aldar Investment Properties LLC (“Aldar Investments”) March 2019 USD/AED
Slide 3: Speakers
Team Members’ Profiles Mike Wallace - Director, Corporate Finance & Treasury • Mike Wallace joined Aldar in 2015 as Director of Corporate Finance and Treasury. • Mike is an accountant by training but has spent the last 20 plus years in Treasury. • Prior to joining Aldar Properties PJSC, Mike was Gro
Slide 4: Section 1: Introduction to Aldar Investments
INVESTMENTS ABOUT ALDAR Section 1: Introduction to Aldar Investments 4
Slide 5: Largest diversified real estate investment company in region
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Largest diversified real estate investment company in region High quality portfolio across four key asset classes¹ Aldar Investment Properties LLC (“Aldar Investments”) owns and operates a diverse
Slide 6: Abu Dhabi real estate market strengths
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Abu Dhabi real estate market strengths Moderate growth in supply expected over coming years limiting further downside risk to rates Recent federal law changes to Strong macro fundamentals with one
Slide 7: Strong relationship with the Government of Abu Dhabi
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Strong relationship with the Government of Abu Dhabi Originally spun-out of Mubadala to activate real estate investment in Abu Dhabi Government is the largest shareholder in Aldar (Mubadala total
Slide 8: Aldar reorganised its corporate structure for capital efficiency
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Aldar reorganised its corporate structure for capital efficiency Rationale For Establishment of Aldar Investments Highest rated sovereign Aldar Investments was established on 29 May 2018 as part o
Slide 9: Aldar Investments’ strategy is to deliver attractive total returns
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Aldar Investments’ strategy is to deliver attractive total returns Aldar Investments’ strategy is to deliver attractive total returns by: • investing in a diversified portfolio of real estate asse
Slide 10: Section 2: Business Overview
INVESTMENTS ABOUT ALDAR Section 2: Business Overview Aldar Investment Properties LLC (“Aldar Investments”) July 2019 10
Slide 11: Asset Overview – Summary as at 31 December 2018
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Asset Overview – Summary as at 31 December 2018 Retail Residential Commercial Hospitality Operational Metrics Operational Metrics Operational Metrics Operational Metrics No. of Properties 27 prope
Slide 12: Recent Developments
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Recent Developments Westin hotel & golf resort Anantara hotel Eastern Mangroves residential Al Jimi Mall extension • 13 operating assets acquired from 31 December 2018 impact • Completion and open
Slide 13: Acquisition Strategy & Pipeline
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Acquisition Strategy & Pipeline Acquisition Strategy Recent Developments & Pipeline Pursuing portfolio growth opportunities through… Aldar Investments recent developments and acquisition pipeline
Slide 14: Asset Overview – Summary as at 31 December 2018
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Asset Overview – Summary as at 31 December 2018 As at 30 June 2018 As at 31 December 2018 Retail 373,000 sqm GLA across 19 assets 432,000 sqm GLA across 27 assets +16% Residential 4,812 units acro
Slide 15: Diverse tenant base
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Diverse tenant base Key Highlights Examples of Tenants ✓ Low tenant concentration risk ✓ Reputable “sticky” tenants (majority are GREs or international entities) ✓ Mostly bulk tenants leasing larg
Slide 16: Leasing strategy protects & grows rental income
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Leasing strategy protects & grows rental income Aldar Investments’ tenancy contract structure ensures current income is protected (no termination clauses) and future income grows (via contracted r
Slide 17: Corporate governance aligned with global standards
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Corporate governance aligned with global standards The management team responsible for Aldar’s (historical) asset management business have assumed non-executive board roles in the newly establishe
Slide 18: Credit strengths based on high quality, recurring revenue portfolio
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Credit strengths based on high quality, recurring revenue portfolio 1 Region’s largest diversified real estate investment company (USD 5.0bn portfolio assets¹) 9 2 Recurring revenues of USD 0.5bn
Slide 19: Section 3: Financial Overview
INVESTMENTS ABOUT ALDAR Section 3: Financial Overview Aldar Investment Properties LLC (“Aldar Investments”) July 2019 19
Slide 20: Recurring revenue stream with long WAULT (3.5 to 4.2 years)
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Recurring revenue stream with long WAULT¹ (3.5 to 4.2 years) Key Messages Revenue Breakdown ✓ Recurring Revenues (USD 0.5bn p.a.): Aldar Investments’ revenues are Well balanced revenue mix stemmin
Slide 21: Robust balance sheet with low debt and resilient asset valuation
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Robust balance sheet with low debt and resilient asset valuation Investment Properties & Assets Debt & Assets Liquidity Resilience of portfolio value in light of lower oil Conservative debt fundin
Slide 22: Conservative leverage metrics & high interest coverage
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Conservative leverage metrics & high interest coverage Debt to Assets & Debt to Equity¹ Interest Coverage¹ Leverage Ratios¹ LTV of c. 30% over the years showcases the High interest coverage (5.2x)
Slide 23: Appendix 1: Detailed Asset Overview
INVESTMENTS ABOUT ALDAR Appendix 1: Detailed Asset Overview Aldar Investment Properties LLC (“Aldar Investments”) July 2019 23
Slide 24: Key Assets - Retail
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Key Assets - Retail WAULT by value²: 3.5 years No. of properties¹ 27 GLA¹ 432,000 AL JIMI MALL IKEA Occupancy¹ 88% Breakdown by WAULT² Breakdown by Type GLA² Description • Destination mall in Al A
Slide 25: Key Assets - Retail group brands
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Key Assets - Retail group brands Dareen International Hamad & Mohamed Al-Futtaim Allied Enterprises Landmark Retail Investment Rsh (Middle East) Al Futtaim Trading Company Dubai Holding Group Down
Slide 26: Key Assets - Residential
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Key Assets - Residential WAULT by value²: 4.2 years No. of properties¹ 11 No. of units¹ 5,084 Sun & Sky Towers Al Oyoun Village³ Occupancy¹ 88% • High rise development of 2 Breakdown by locations
Slide 27: Key Assets - Commercial
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Key Assets - Commercial WAULT by value¹: 4.2 years No. of properties¹ 12 HQ Building GLA¹ 238,000 Occupancy ¹ 93% Description • Mid-rise office building Breakdown by Location (GLA)¹ Breakdown by O
Slide 28: Key Assets - Hospitality
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Key Assets - Hospitality No. of properties¹ 14 Location Yas Island, Saadiyat Island, Western Region Yas Radisson Yas Centro Hotel Keys¹ 2,764 Blu Occupancy 73% (2018 full year) Operator • Rezidor
Slide 29: Appendix 2: Operating Environment
INVESTMENTS ABOUT ALDAR Appendix 2: Operating Environment Aldar Investment Properties LLC (“Aldar Investments”) July 2019 29
Slide 30: Government initiatives provide a supportive operating environment
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Government initiatives provide a supportive operating environment Abu Dhabi – Strongest Credit Profile in MENA Driving Economic Growth “ AED 50bn (USD 13.6bn) fiscal stimulus approved in June 2018
Slide 31: Abu Dhabi Macro Fundamentals
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Abu Dhabi Macro Fundamentals GDP Composition1 (2017) Abu Dhabi GDP1,2 The reliance on the hydrocarbon sector has dropped from 54.5% in 2013 to Despite the current low oil prices, Abu Dhabi maintai
Slide 32: Abu Dhabi Macro Fundamentals (cont’d)
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Abu Dhabi Macro Fundamentals (cont’d) Abu Dhabi Population (in mn)1 Promoting Abu Dhabi Tourism2 Abu Dhabi’s economic growth is further supported by a growing population, The Abu Dhabi Tourism & C
Slide 33: Abu Dhabi’s Real Estate Sector
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Abu Dhabi’s Real Estate Sector Government Funding1 Government Initiatives to Strengthen the Real Estate Sector Aldar – Emaar JV to jointly develop Reviewed building regulations projects The Govern
Slide 34: Abu Dhabi Real Estate Sector (cont’d)
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Abu Dhabi Real Estate Sector (cont’d) Residential Market1 Residential Performance – Sales Prices Residential Performance – Rents Prime Sales of Residential Units (USD / sqm) Average Rent on Two Be
Slide 35: Appendix 3: Financial Statements
INVESTMENTS ABOUT ALDAR Appendix 3: Financial Statements Aldar Investment Properties LLC (“Aldar Investments”) July 2019 35
Slide 36: Financial Statements (Summary)
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Financial Statements (Summary) Income Statement USD mn 2015 2016 2017 2018 Revenue 529 533 512 498 Finance income - - 3 - Finance cost (59) (57) (59) (51) Net finance cost (59) (57) (57) (51) Depr
Slide 37: Income Statement
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Income Statement USD mn 2015 2016 2017 2018 Revenue 529 533 512 498 Costs of revenue (200) (186) (179) (174) GROSS PROFIT 329 348 333 324 Management fee by Ultimate Parent - - - (11) Selling and m
Slide 38: Balance Sheet
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Balance Sheet USD’000 2015 2016 2017 2018 ASSETS Property and equipment 665 626 589 829 Intangible assets 0 0 0 0 Investment properties 3,658 3,689 3,814 4,225 Other financial assets - - - 2 Total
Slide 39: Cashflow Statement
Introduction to Aldar Investments Business Overview Financial Overview Appendix 1 Appendix 2 Appendix 3 Cashflow Statement USD’000 2015 2016 2017 2018 Profit for the year 504 198 87 35 Adjustments for: Depreciation and amortization 35 33 33 30 Finance costs 54 52 54 49 Amortisation of prepaid financ
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