RESULTS TS TION 2019 RESUL PRESENTATIO PRESENT FY 2019 YEAR YEA R ENDE ENDED D 31 31 DE DEC C 20 2019 19 12 12 FEBR FEBRUAR ARY 20 2020 20 FY #ALD #ALDARFY1 ARFY19 9 #ALD #ALDAR AR Aldar FY 2019 Results Al
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. CLAIMER 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, DISCLAI warrant, undertake or 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 to profits, income, revenue, use, production, anticipated savings, business, contracts, commercial opportunities reputation or goodwill. DIS Al Aldar FY 2019 Results 1
Strong headline financials Record development sales ▪ Attributable net profit up 7% to AED ▪ Development sales up 53% to AED 2.0 bn 4.0 bn ▪ Revenue up 14% to AED 7.1 bn ▪ Successful “The Perfect 10” event ▪ Gross profit up 5% to AED 2.8 bn ▪ AED 4.4 bn revenue backlog ▪ Net profit up 4% to AED 1.9 bn IN SUMMARY Robust balance sheet Highest ever asset management NOI ▪ Debt well within policies for AM and ▪ 6% growth in NOI to AED 1.7 bn IN SUMMA DM at 38.0% and 13.3% respectively ▪ New asset additions and growth at ▪ New 10-year sukuk extends debt adjacent businesses and hospitality maturity to 5.2 years and average cost offsetting softer LfL IP performance of debt down 0.3% to 3.8% Commitment to shareholder returns Growth guided for 2020 2019 2019 ▪ 4% growth in 2019 dividend ▪ 2020E Asset Management guidance up 6% to AED 1.8 bn ▪ 13% CAGR dividend growth between ▪ 2020E Development sales guidance 2012-2019 maintained at AED 4 bn Aldar FY 2019 Results Al 2
…supported by an established dividend policy that provides transparency Aldar has maintained a progressive dividend policy… MENT TO O Asset management Development business business RS EHOLDERS Realised profit Distributable free 14.0 fils 14.5 fils Pay-out factor cash flow Policy 12 fils Range 65-80% 20-40% 10.0 fils 11.0 fils COMMITMENT + 9.0 fils Net operating SHAREHOLDE +4% 7.0 fils income 6.0 fils Less: Methodology/ key drivers Interest expense Upon completion Maintenance capex and handover of Overheads developments 2019 dividend: 14.5 fils ~80% ~30% 2012 2013 2014 2015 2016 2017 2018 2019 ▪ Prior to 2017, dividend was predominantly based on asset management dividend component only COMMIT ▪ From 2018, development dividend component has grown supported by handovers, however, dividend remains weighted to Asset Management component SHAR ▪ The Board recommends a 4% increase in dividend to 14.5 fils per share, supported by marginal growth in asset management NOI and steady pace of development handovers ▪ Dividend has been progressive since 2012 with a CAGR of 13% – total dividends of AED 6.6 billion Aldar FY 2019 Results Al 3
AED bn FY 2019 FY 2018 Variance • Successful launches addressing new segment • Strong inventory sales ie. The OPMENT Development sales 4.0 2.6 +53% Perfect 10 VELOPMENT Development revenues 3.1 2.4 +27% Strong progress on projects under construction and commencement of govt Property development 2.7 2.4 +16% projects HIGHLIGHTS HIGHLIGHTS Development management 0.4 0.1 +353% Development gross profit 1.1 1.1 +4% Development management segment achieves new profit guidance of AED 150 Property development 0.9 1.0 (4%) mn Development management 0.2 0.1 +120% Rotation from high-margin property development land plots into broader product range Gross profit margin 35% 42% (7%) Growth in backlog gives better visibility on earnings Revenue backlog 4.4 4.2 +5% Healthy sales achieved across active DEVE Percentage sold 82% 78% +4% development pipeline Units launched for sale (‘000s) 1.5 1.4 +9% 4 development launches in 2019, up from 2 in 2018 DE Units sold (‘000s) 1.8 1.4 +30% Strong demand on launches and inventory sales during 2019 Aldar FY 2019 Results Al 4
OPMENT VELOPMENT TIMELINE 2019 LINE 2019 AWARDED JULY 2019 ANNOUNCED SEPTEMBER 2019 ANNOUNCED DECEMBER 2019 LAUNCHED APRIL 2019 AED 5 billion projects The Perfect 10 Land swap Lea Three development projects; a new Aldar announces its first major A move which saw Al Raha Beach Type: Residential land plots promotional event with 10 days of ‘one national housing development at Al Land: Investment zone East and Lulu Island go in a swap deal off’ discounts across its development Location: Yas Island Falah, the new twofour54 media and with the government of Abu Dhabi for entertainment free-zone and key portfolio inventory generating AED 0.5 land infrastructure enabled land within Units launched: 238 Sold as at 31 Dec 2019: 85% infrastructure works at Saadiyat billion in new sales. both Saadiyat Island and Mina Zayed Island ANNOUNCED NOVEMBER 2019 LAUNCHED JANUARY 2019 LAUNCHED JUNE 2019 LAUNCHED SEPTEMBER 2019 Saadiyat Grove Alreeman Alreeman II Saadiyat Reserve AED 8 billion landmark destination located in Type: Mid-market residential land plots Type: Mid-market residential apartments Type: Residential land plots the heart of the Cultural District on Saadiyat Land: Investment zone Land: Non-Investment Zone Land: Investment zone Island. To promote a new 'culture of living' Location: Al Shamka Location: Al Shamkha Location: Saadiyat Island and an immersive lifestyle experience in Abu Units launched: 1,012 Units launched: 557 Units launched: 223 Dhabi. Development to include retail, leisure Sold as at 31 Dec 2019: 89% Sold as at 31 Dec 2019: 84% Sold as at 31 Dec 2019: 49% and residential space, as well as hotels and co-working spaces DEVE TIME DE Aldar FY 2019 Results Al 5
▪ Strategic non- cash land swap with Government of Abu Dhabi completed in Dec’19 ▪ Enable Aldar to consolidate development focus on key destinations including Saadiyat Island OPMENT VELOPMENT ▪ Government of Abu Dhabi receives assets that match its long-term strategic objectives ▪ Will support management of real estate supply within Abu Dhabi to ensure a balanced real estate market is sustained SWAP ▪ A total of approximately 6 million sqm GFA of land exchanged LAND SWA Aldar Government of Abu Dhabi Lulu Island (60% ownership) Saadiyat Island (Cultural District land plots) LAND DEVE Abu Dhabi Island land plots (Al Mashtal & Qasr Al Baher) Mina Zayed land plots DE Al Raha Beach West Aldar FY 2019 Results Al 6
AED bn FY 2019 FY 2018 Variance Recurring revenues 3.4 3.2 +7% Asset Management 2.4 2.4 +3% Both revenue and NOI growth driven by expansion across key adjacent businesses Adjacent Businesses 1.0 0.8 +18% and new asset additions (Etihad and Al Jimi Mall extension), offset by weaker LfL GEMENT MANAGEMENT Net operating income (NOI) 1.7 1.6 +6% rates across IP assets Asset Management 1.5 1.5 +1% Adjacent Businesses 0.2 0.1 +107% Resilient occupancy maintained in challenging market conditions Occupancy¹ 89% 90% (1%) • Net GAV growth driven by additions partly offset by FV adjustments and Gross asset value (GAV)² 18.5 17.7 +5% sale of Al Murjan Tower Portfolio WAULT (years) 4.7 3.8 +24% • Portfolio WAULTS extended following Etihad transaction ASSET ASSET Residential bulk leases 49% 38% +11% • Residential bulk leases growth supported by Etihad JV transaction Govt/ GRE commercial leases 63% 64% (1%) MAN • Driven by strong Abu Dhabi events Hotel RevPAR (AED) 330 306 +8% calendar ¹ Occupancy of investment properties (residential, retail and commercial) Al Aldar FY 2019 Results ² Gross Asset Value of Asset Management segments; completed investment properties (retail, residential and commercial) and operating businesses (hospitality) 7
Asset Management NOI growth of 6% driven by Adjacent Businesses and Hospitality 1,691 91 1,597 -17 22 -30 29 181 MANAGEMENT GEMENT 90 97 126 Etihad Plaza Al Jimi Mall Etihad Airways Strong Abu Dhabi Aldar Academies addition extension Centre addition events calendar profit growth 446 416 Etihad Plaza retail Occupancy @ 92% Khidmah Provis Occupancy @ 88% ADRs up c.5% addition (down 2%) profit growth Al Murjan Tower Occupancy @ 75% Full year impact of Ceased Yas OV Occupancy @ 89% sold Baniyas lease extension (up 2%) TDIC district cooling Cost savings ie. Retail LfL rates down LfL rates down c.5% LfL rates down c.3% c.9% (Yas Mall) franchise model 482 499 ASSET ASSET Key drivers 487 465 MAN FY 2018 Residential Retail Commercial Hospitality Adjacent businesses FY 2019 Residential Retail Commercia Hospitality Adjacent businesses Al Aldar FY 2019 Results 8
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