Al Dar Properties · ADX:ALDAR
Al Dar Properties — Investor Day (November 2015)
35 slides from Al Dar Properties's investor day presentation, Nov 18, 2015
Slide 1: Investor Day 2015
INVESTOR DAY 2015 18 NOVEMBER 2015
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 H.E Abubaker Seddiq H.E Mohamed Khalifa Talal Al Dheyebi Greg Fewer Al Khoori Al Mubarak Chief Development Chief Financial Officer Chairman Chief Executive Officer Officer 01
Slide 4: Today's Agenda
Today’s Agenda Chairman’s introduction 3 Strategy going forward 7 Further NOI growth ahead 12 Focus on Abu Dhabi 20 Financial considerations 27 Closing remarks 31 02
Slide 5: Chairman's Introduction
Chairman’s Introduction H.E. Abubaker Seddiq Al Khoori
Slide 6: The Road Travelled
The Road Travelled Positive outlook for Abu Dhabi and continued economic growth Long established government plan for economic diversification: Non oil contribution grown: 49% of GDP¹ in 2014 Substantial infrastructure investments underway Prudent fiscal measures to support further growth a
Slide 7: Delivery on Strategy
Delivery on Strategy Grow our recurring revenue assets Double NOI between 2013 and 2015 Stabilising key assets – Yas Mall, Gate Towers and Al Rayyana Monetise our land bank Completion and handover of over 7,000 units across 6 development projects Reopen the off-plan sales market – 6 proj
Slide 8: Positive Outlook
Positive Outlook Economy and real estate market fundamentals remain robust Aldar strong and well positioned for the future Formalised dividend policy from 2016 Highly attractive investment proposition 06
Slide 9: Strategy Going Forward
Strategy Going Forward H.E. Mohamed Al Mubarak
Slide 10: Our Strategy Works
Our Strategy Works Maximize value of our recurring revenue assets Focus on Abu Dhabi Monetize our land Optimise capital bank structure Strategy remains unchanged 08
Slide 11: Committed To Development
Committed To Development Development strategy Focused on our destinations Extensive land bank – 5.9 million sqm GFA across Yas Island, Shams Abu Dhabi and Al Raha Beach Opportunities in the market Emergence of our destinations as preferred communities in Abu Dhabi Unaddressed segments De
Slide 12: The Yas Island Story
The Yas Island Story Key development focus area for Government of Abu Dhabi and Aldar Ambition to create a unique, world class leisure and entertainment destination Yas Island is currently at 50% capacity, ambition to be 80% by 2020 Government of Abu Dhabi Aldar Enhance our existing hotel an
Slide 13: Committed To Growing Our Recurring Revenues
Committed To Growing Our Recurring Revenues Provides stable earnings throughout cycle Today stands at a substantial business - AED 1.6 billion NOI¹ Diversified portfolio – high and growing occupancy with current market yields 7.5%+ Target NOI growth Opportunities to grow recurring revenues
Slide 14: Further NOI Growth Ahead
Further NOI Growth Ahead Talal Al Dhiyebi
Slide 15: A Unique Asset Management Proposition
A Unique Asset Management Proposition Continued growth in NOI as key assets stabilise Diversity of portfolio (based on 1.6bn NOI) 1,800 Retail Residential Office Hotels Other 1,600 1,600 1,400 ¹ 5% 1,400 15% 1,200 1,000 35% NOI AED(m) 1,000 800 700 15% 600 400 200 30% 0 2013A 2014A 2015E 2016E ¹ for
Slide 16: Yas Mall – One Year On
Yas Mall – One Year On % split GLA Anchors Entertainment F&B Lineshops First super-regional mall in Abu Dhabi, has raised the retail landscape in the Capital, which had previously been under invested in 37% 43% Fully leased with 355 stores trading today (96% occupancy) Key anchors Apple Store
Slide 17: Other Retail – Source Of Growth
Other Retail – Source Of Growth Retail AM strategy to hold the community retail around % split of 460,000sqm GLA developments and destination retail Super-regional Big box Community mall Community retail Community retail has non-monetary benefits as it helps create the destination by bringing a
Slide 18: Residential – Exceptional Performance
Residential – Exceptional Performance Residential AM strategy to hold a diverse portfolio of units across the market Continued ‘flight to quality’ and ‘destination living’ has supported exceptional performance across portfolio which sits at 99% occupancy Leases split between individual and bul
Slide 19: Office – Stabilised With Secure Offtake
Office – Stabilised With Secure Offtake % split of 181,000 GLA by type Strong pick up in occupancy over last 12 months as office market Government GRE Corporate Vacant conditions improved 8% 92% leased across portfolio as at 30 Sep 15 20% 40% Government and Government related entities (GRE) re
Slide 20: Hotels – Outperforming The Market
Hotels – Outperforming The Market 90% of hotel keys sit on Yas Island Breakdown of 2,536 keys by type 5-star 4-star 3-star Serviced apartments Occupancy in line with last year at 79%, ahead of the market, going into our strongest quarter 13% 20% 4-star, 3-star and serviced apartments are best
Slide 21: Target 40% Increase In NOI By 2020
Target 40% Increase In NOI By 2020 AM strategy to further grow portfolio through: Maturity of existing assets: AED2.2bn Asset optimisation AED1.6bn Market conditions +40% Expiry of short term leases AED 3 billion investment plan to target opportunities across all asset classes: Demand
Slide 22: Focus On Abu Dhabi
Focus On Abu Dhabi Talal Al Dhiyebi
Slide 23: Strong Developer Fundamentals
Strong Developer Fundamentals Developer landscape Concentrated off-plan sales market Market share Sales reflect c.50% of the total off-plan sales market 75m sqm land bank, 90% in investment zones Significant land bank 5.9m sqm GFA across three destinations Continued population growth and ‘
Slide 24: Generation Of Land Development
Generation Of Land Development 75m sqm of land to development across Abu Dhabi 22
Slide 25: Development Focus – Destination Development
Development Focus – Destination Development Development strategy focused on enhancing destinations where we see real demand for new developments 23
Slide 26: Destination Approved GFA is 5.9 Million sqm
Destination Approved GFA is 5.9 Million sqm Land bank name Location Land area (sqm) GFA¹ (sqm) Yas Island Yas Island 7.1m 3.8m Al Raha Beach Al Raha Beach 3.7m 1.2m Shams Abu Dhabi Al Reem Island 0.2m 0.9m Total 11.0m 5.9m ¹ GFA stated only includes approved GFA following submission of planning appr
Slide 27: Current Development Project Overview (30 Sep 15)
Current Development Project Overview (30 Sep15) Project Location Launch date Sold units Details Expected completion Ansam Yas Island 2014 479 Prime apartments and villas 2017 Hadeel Al Raha Beach 2014 207 Prime apartments and villas 2017 Nareel Abu Dhabi Island 2015 54 High-end villa plots 2017 Meri
Slide 28: Committed To Development
Committed To Development Re-guiding our development launches to annual target of c.1,500 units going forward, in line with previous guidance, focused on our destinations Market remains stable and we continue to see demand for our product in the market Development strategy focused around bringi
Slide 29: Financial Considerations
Financial Considerations Greg Fewer
Slide 30: Financial Overview
Financial Overview 2015 themes: Growth in recurring revenues has dominated quarterly financial performance Early adoption of IFRS 15 revenue recognition has changed our development revenue profile New segmental reporting Strengthening of our balance sheet through collection of receivables
Slide 31: Committed To A Dividend Policy From 2016
Committed To A Dividend Policy From 2016 Asset management Property development Net operating income (NOI) - Maintenance capex Total development sales - Corporate cost allocation - Total development cost - Net interest cost = = Realised development profit Free cash flow Two very different but compl
Slide 32: Abu Dhabi Spread-to-Sovereign Not Reflective
Abu Dhabi Spread-to-Sovereign Not Reflective Country Cap rate¹ Sovereign rates² Spread to sovereign United Kingdom 4.4% 2.1% 2.4% United States 4.8% 2.3% 2.5% Dubai 8.0% 4.9% 3.1% Aldar (Abu Dhabi) 8.0-8.5% 3.4% 4.6-5.1% ¹ Cap rates taken as average of prime office, prime shopping centres and logist
Slide 33: Closing Remarks
Closing Remarks Macro environment remains supportive Our strategy works and remains unchanged We continue to see significant opportunities in the Abu Dhabi real estate market and maintain our development guidance – 1,500 unit launches a year Target 40% growth in NOI by 2020 to AED2.2bn Com
Slide 34: Q&A Questions?
Q&A M3 ALDAR Questions?
Slide 35: Thank You
THANK YOU