ON TION TS SULTS NTATI 2018 RESUL FULL YEAR YEAR SENT 2018 - PowerPoint PPT Presentation

ON TION TS SULTS NTATI 2018 RESUL FULL YEAR YEAR SENT 2018 RE PRESE FULL PRE Al Aldar FY 2018 Results

This disclaimer governs the use of this presentation. You must not rely on the information in the presentations and alternatively we recommend you seek advice from an appropriately qualified professional. If you have any specific questions about any matter in this presentation you should consult an appropriately qualified professional. LAIMER MER The statements made in this presentation are only forward-thinking statements. Such statements are based on expectations and are subject to several risks and uncertainties that could differ materially from any expected outcome or results expressed or implied in these statements. Without prejudice to the generality of the foregoing paragraph, we do not represent, warrant, undertake or SCLAI guarantee that the information in the presentation is accurate or use of guidance in the presentation will lead to any particular outcome or result. We will not be liable to you in respect of any business losses, including without limitation loss of or damage DISC to profits, income, revenue, use, production, anticipated savings, business, contracts, commercial opportunities reputation or goodwill. DI Aldar FY 2018 Results Al 1

A year of significant corporate action… delivering robust financial performance N REVIEW IEW AED 3.7 billion TDIC asset acquisition +2% Revenue AED 6.3 bn 2018 IN REV Gross profit AED 2.6 bn -1% Net profit AED 1.9 bn -8% +3% AM NOI AED 1.6bn 2018 I DM sales AED 2.6 bn -33% Emaar strategic partnership AED 20 billion assets Aldar FY 2018 Results Al 2

Aldar has maintained a progressive dividend policy… 14 fils 12 fils HOLDERS 11 fils ED TO O Prior to 2017, dividend was predominantly 10 fils ❑ 9 fils based on asset management dividend SHAREHOLDER 7 fils component only +17% 6 fils 2018 is the first full year of development ❑ TTED handovers 2012 2013 2014 2015 2016 2017 2018 COMMITT Dividend remains weighted to Asset ❑ supported by an established dividend policy provides transparency management component Asset management Development business business COMMI Distributable free SHARE Pay-out factor The Board recommends a 17% increase in ❑ cash flow Realised profit Policy dividend to 14 fils per share, supported by Range 65-80% 20-40% + Net operating increased development handover activity income during 2018 and stable asset management Less: Methodology/ key drivers performance Interest expense Upon completion Maintenance capex and handover of Overheads developments 2018 dividend: 14 fils ~80% ~20% Al Aldar FY 2018 Results 3

FY net profit down 8% FY revenue up 2% FY gross profit down 1% 2,656 2,632 6,181 6,287 2,006 1,855 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 T A GLANCE A GLANCE Asset Management Corporate and other Development Property development revenue up Resilient portfolio performance with AED 0.8 billion other income primarily ❑ ❑ ❑ 3% growth in NOI, supported by includes the completion of 11%, supported by progress on development projects, including recent asset additions and occupancy Government infrastructure handover Mamsha and Jawaher programme and a gain on business ❑ TDIC operating assets to exceed combination Development management revenues initial NOI guidance of AED 120 ❑ FY 2018 FY 2018 million Net fair value losses of AED 0.7 down as near completion on several ❑ key projects billion across investment properties Strong margins maintained across portfolio ❑ Revenue backlog as at 31 Dec 2018 investment portfolio at 80% ❑ stands at AED 4.2 billion Higher net interest cost and higher ❑ Al Jimi mall extension set to open in depreciation charge ❑ Nareel, Al Merief and Meera Q1 2019, adding 30,000 sqm GLA to ❑ retail portfolio Balance sheet remains robust, completed and commenced handover ❑ during 2018 conservative debt position, well within AT debt policy ranges for asset management and development 1,237 units handed over during 2018 ❑ businesses Al Aldar FY 2018 Results 4

Q4 2018 NOI up 1% at AED 443 million FY 2018 NOI up 3% to AED 1,596 million Q4 2017 FY 2017 66 115 124 115 477 522 392 100 65 19 MANAGEMENT GEMENT 31 FY 2018 Q4 2018 106 113 116 77 464 495 437 104 96 Hospitality Adjacencies & other Residential Retail Commercial ❑ Includes education 88% occupancy¹ 82% occupancy (Q4) 88% occupancy¹ 94% occupancy¹ (Aldar Academies and ASSET ASSET Cranleigh), property and facilities ❑ Stable occupancy ❑ Increased community ❑ Growth supported by ❑ FY 2018 occupancy management ❑ New asset additions, retail occupancy International Tower of 74% (Khidmah – now ❑ New retail asset (acquired in Q4’17) ❑ Q4 is the highest offsetting lower 100% owned renewal rates additions and Repton School performing quarter MAN acquired) and ❑ Bulk deals represent ❑ Lower Yas Mall (opened Q4’17) due to the seasonality Saadiyat district ❑ WAULT: 4.1 years 38% renewals nature of the cooling assets ❑ WAULT: 4.2 years ❑ Yas Mall occupancy hospitality sector (acquired in TDIC 89%¹ transaction) ❑ WAULT: 3.5 years ¹ As at 31 December 2018 Al Aldar FY 2018 Results 5

Development revenue based on progress of completion 100% Ansam Hadeel Meera Jawaher Nareel Island OPMENT Al Merief Mamsha VELOPMENT West Yas ¹ MANAGEMENT GEMENT Yas Acres 2018 highlights Mayan 15 projects within development pipeline at various 0% Revenue recognised stages – 6 handed over/ in process of handover The Bridges 1,423 units launched during 2018 across Reflection, Water’s Edge Alghadeer and Alreeman AED 2.6 billion development sales in FY 2018 (Q4 2018: AED 1.3 billion) Alghadeer AED 4.2 billion development sales revenue back Reflection log as at 31 Dec 2018 DEVE Alreeman MAN Launch date Time c.2-2.5 years 78% sold across all units launched for sale Tender Launched Main DE contract Final stages of development construction Handover and early construction Weighted percentage complete across development for sale stage works portfolio as at 31 Dec 18: 37% ¹ West Yas is a third party development management fee-based project Al Aldar FY 2018 Results 6

PITAL AL Primed for growth CAPIT o Corporate structure enables asset management MANAGEMENT GEMENT Aldar Properties to operate more independently to drive greater operational and capital efficiency UDENT CA o Aldar Investments attained Baa1 credit rating and successfully raised $500 million sukuk in September 2018 at tight pricing (MS+170bps), Asset Development demonstrating the value of its high quality, Management Management PRUDENT diverse asset base 100% owned o Strong governance in place – separate debt and Aldar Investments dividend policies for both asset management and (Baa1 – Moody’s) development management businesses o Strong liquidity position with AED 4.7 billion Dividend policy 65-80% DFCF 20-40% profit undrawn, committed credit facilities as at 31 Dec MAN 2018 Debt policy 35-40% LTV (37.5%²) <25% LTV (4.8%²) o Sector leading average cost of debt at 4.0%, with PR average maturity of 4.8 years¹ ¹ Post sukuk refinancing Al Aldar FY 2018 Results 7 ² As at 31 Dec 2018

POLICY REFORM REFORM NT RNMENT ADNOC growth Abu Dhabi Government stimulus Federal law amendments VERNME o Amendments to UAE’s federal policies o AED 50 billion ($13.6 billion) stimulus o 5-year capex plan of AED 486 billion (US$ 132 billion) approved by SPC in announced in June and detailed in announced in Q3 2018 November 2018 September 2018 o Promote expat societal participation in POLICY o ‘Tomorrow 2021 ’ includes 50 initiatives o Boost oil production capacity to 4 UAE through the introduction of 100% million barrels a day by 2020 (from across four key pillars; business, ownership of UAE-based enterprises 3.5mbpd today), with 2030 target of 5 society, knowledge & innovation and for foreign investors million barrels per day lifestyle aimed at improving GOVE o Residency visas for up to 10 years for competitiveness, job creation, o Develop world’s largest refining and economic shift to knowledge based investors, retirees and key petrochems complex in Ruwais city, economy and improving living professionals and their families double population to 50,000 over the GO standards next 15 years New policy reform and ADNOC strategy promoting growth and increasing expat societal participation Al Aldar FY 2018 Results 8