Aldar Properties Q3 2019 Revenue And Gross Profit Rise 7% And 14% Respectively, Driven By Solid Performance Across Key Businesses

• CEO Talal Al Dhiyebi: "Aldar's customer-centric business model continues to deliver sustainable, broad-based growth"

• Aldar Properties Q3 2019 gross profit up 14% to AED 662 million Development sales grew 272% to AED 1.1 billion in Q3 2019, and 128% to AED 3 billion in the first nine months of 2019

• Development Management gross profit up 29% to AED 255 million, driven by successful project launches

• Asset Management net operating income (NOI) up 4% to AED 397 million, supported by recent asset additions and growth from key adjacent businesses

• Development sales grew 272% to AED 1.1 billion in Q3 2019, and 128% to AED 3 billion in the first nine months of 2019

Abu Dhabi - UAE, 12th November 2019: Aldar Properties PJSC ("Aldar"), Abu Dhabi's leading property development, management and investment company, today reported a 14% year-on-year increase in gross profit to AED 662 million in the third quarter of 2019.

Financial highlights

Third Quarter 2019

• Revenue increased 7% to AED 1.60 billion vs. AED 1.50 billion in Q3 2018- Development Management recorded 20% growth in revenue to AED 642 million- Off-plan development sales increased 272% to AED 1.1 billion- Solid performance from the Asset Management business, with net operating income (NOI) increasing by 4% to AED 397 million

• Gross profit increased 14% to AED 662 million vs. AED 581 million in Q3 2018

• Net profit decreased 8% to AED 387 million vs. AED 420 million in Q3 2018, due to higher non-recurring income in 2018, primarily from Government reimbursement payments for completed infrastructure delivered by Aldar

• A $500 million sukuk issuance by Aldar Investments in mid-October was six times oversubscribed and received strong demand from international investors. The transaction served to extend the duration of Aldar's debt liabilities and reduce financing costs

Talal Al Dhiyebi, Chief Executive Officer of Aldar, said: "Aldar's customer-centric business model continues to deliver sustainable, broad-based growth. Development sales have seen strong momentum this year following the successful launch of new projects. Robust demand from end users for our off-plan developments and infrastructure-enabled land plots is a positive sign for the Abu Dhabi real estate market and the wider economy. Meanwhile, our large portfolio of rental properties owned and managed by Aldar Investments is producing predictable income streams that provide the strong base for our dividend. Overall, government policies are building momentum and positive sentiment in the Abu Dhabi economy that are meaningfully contributing to Aldar's growing pipeline of business."

Development Management highlights

Aldar's Development Management business reported a strong third quarter and year-to-date performance, based on a strategy that blends delivery of high-quality developments with demand-driven sales of infrastructure-enabled land plots.

• Development Management gross profit increased 29% to AED 255 million in Q3 2019• New projects launched and awarded in 2019 reached a total development value of close to AED 10 billion (AED 5 billion between Alreeman I, Alreeman II, Lea and Reserve; AED 5 billion from Government-awarded contracts detailed below)

• In Q3 2019, off-plan sales were recorded at AED 1.1 billion, primarily driven by the successful launches this year of Lea and Alreeman II as well as sales on existing projects under development including Yas Acres. In the first nine months, off-plan development sales totalled approximately AED 3.0 billion, a 128% increase from the same period in 2018

• Development revenue backlog stood at AED 4.6 billion as at 30 September 2019, giving strong visibility on future revenues• In July 2019, the Abu Dhabi government awarded Aldar AED 5 billion worth of construction projects across several key Abu Dhabi areas and landmarks including:- An AED 2 billion project to develop the expansion of Al Falah housing community on behalf of the Government, adding 899 new villas to the community's existing 4,898 villas- An AED 1 billion project to develop twofour54's new state-of-the-art campus that will ultimately house 10,000 professionals on Yas Island- AED 2 billion worth of infrastructure works on Saadiyat Island, including landscaping and transport-related structure

• Flagship projects such as Mamsha, Jawaher and Yas Acres are making excellent progress with handover dates approaching

Asset Management highlights

The Asset Management business, predominantly through Aldar Investments, owns and manages a high-quality portfolio of commercial, retail, residential and hospitality assets, characterised by a diversified tenant mix.

• Asset additions (including Etihad Plaza, Etihad Airways Centre and Al Jimi Mall extension) drove net operating income (NOI) growth of 4% to AED 397 million in Q3 2019 (Q3 2018: AED 381 million)

• Year to date, NOI was also up 6% to AED 1.22 billion compared to the same period last year

• Occupancy across Aldar's investment property portfolio which includes retail, residential and commercial remained stable at 90%

• Hospitality continues to see strong performance this year, with occupancy reaching 75% in the first nine months of 2019 versus 71% in the same period of 2018

• Key adjacent businesses, including Aldar Academies (education), Khidmah (facilities management) and Provis (property management) witnessed strong performance, boosted the performance of Aldar's core businesses and contributed positively to financial results

• Aldar has tripled student numbers to 22,000 (2019/20 academic year) across network over the past 2 years

• Provis, Aldar's property management business, today has 15,000 properties under management