Aldar to build on strong FY2021 performance with acceleration of transformational growth agenda
Abu Dhabi – UAE, 08 March 2022
- Sustained growth across Aldar’s diversified business, driven by the highest-ever yearly sales for Aldar Development and steady recurring income growth for Aldar Investment
- Revenue backlog reached a record of AED 6.0 billion, enhancing future revenue visibility and predictability
- Strong liquidity position with AED 5.4 billion of unrestricted cash and AED 4.7 billion of undrawn committed facilities earmarked to fuel long-term growth opportunities
- Earnings per share of AED 0.295, up 20% YoY, demonstrating our continued commitment to delivering sustainable shareholder value
- Recommended dividend increased to AED 0.15 per share, rewarding shareholders in line with Aldar’s transparent, well-governed policies
- Quarterly Development sales of AED 1.1 billion in Q4, bringing full year total sales to a record figure of AED 7.2 billion, with an increasing number of international, younger, and female buyers
- Aldar Investment’s NOI increased 11% YoY to reach AED 1.72 billion, mainly driven by strong performance in the retail portfolio, substantial recovery in the hospitality and leisure business, and increased student enrolments in the education business
- Retail portfolio reported a significant increase in occupancy to 93%, with weighted average unexpired lease terms (WAULT) increasing by 38%, demonstrating the long-term leases secured during the year
- Aldar’s operating environment was bolstered by the UAE’s effective response to the pandemic, improved market sentiment towards Abu Dhabi’s real estate sector, and supportive economic initiatives
- Strong FY2021 fuels acceleration of Aldar’s transformational growth agenda, with the company set to build upon recent acquisitions of SODIC in Egypt and Al Hamra Mall in Ras Al Khaimah, several PropTech investments, and the AED 5.14 billion investment from Apollo Global Management to transform Aldar into a leading regional player
Mohamed Khalifa Al Mubarak
Chairman Of Aldar Properties
“Supported by the government’s proactive economic and social initiatives that have encouraged an even more open, tolerant, and vibrant environment, Abu Dhabi saw cross-sector growth in 2021, demonstrating the resilience and strength of its broader economy. The robust fundamentals of Abu Dhabi’s real estate sector were reflected in Aldar’s impressive results, as the company continues to build on its position as a trusted partner for public-private collaboration on strategic real estate and infrastructure projects, adding considerable momentum to our leadership in the sector in the UAE. With an increasingly mature asset mix, Abu Dhabi has clearly bolstered its status as a world-renowned destination to live, work, visit, and invest. I am confident that Aldar’s growth strategy, commitment to operational excellence, and strong execution capabilities will continue to drive the company forward as a major contributor to the UAE’s economy and diversification efforts.”
Talal Al Dhiyebi
Group Chief Executive Officer of Aldar Properties
“Aldar has yet again delivered an excellent set of financial results, driven by record development sales and steady recurring revenue from our investment business. We have built on our robust 2021 performance with strong momentum at the outset of 2022 through a number of transactions including our entry into the Ras Al Khaimah market and the landmark AED 5.1 billion strategic investment by Apollo Global Management. Backed by a solid pipeline of investment opportunities, we are strongly positioned to accelerate our transformational growth agenda, with a mandate to build scale and enhance diversification across our platform. With plans for significant and sustained deployment of capital this year, we are confident and resolute in our ability to deliver superior and substantial value to our shareholders over the medium and long term.”Business Unit Highlights
Aldar Group
Note: Aldar’s audited FY21 financial results now include the consolidated figures for the acquisition of Sixth of October Development and Investment Company (EGX: OCDI) (“SODIC”) which closed on 16 December 2021.
| Aldar Group (AED Billion) | Full Year 2021 (AED billion) | YoY % |
|---|---|---|
| Revenue | 8.58 | +2% |
| Gross profit | 3.60 |
+21% |
| Sales | 2.33 | +21% |
Business Unit Highlights
Aldar Development
This core business unit comprises two main segments: Property Development & Sales, which is responsible for developing and marketing Aldar’s diverse and strategic land bank located in key investment zones including Saadiyat and Yas Islands; and Project Management Services, which manages Aldar's fee-based development management business including government housing and infrastructure projects.
| Aldar Development (AED MN) | FY 2021 | FY 2020 | % Change |
|---|---|---|---|
| Revenue | 5,033 | 4,962 | +1% YoY |
| Gross profit | 1,820 | 1,404 |
+30% YoY |
| Net profit | 7,247 | 3,617 | +100% YoY |
- Aldar Development’s FY gross profit jumped 30% to AED 1.82 billion as revenue remained steady. This significant increase was driven by a record sales figure of AED 7.2 billion for the year, with substantial demand for Aldar’s major project launches throughout 2021, including multiple phases of Noya and Yas Acres, Al Gurm and the third phase of Saadiyat Reserve.
- With the fourth quarter seeing AED 1.1 billion in sales, this is the sixth consecutive quarter in which Aldar has exceeded AED 1 billion in residential sales.
- Gross profit margin increased to 36% in 2021, up from 28% in 2020. This was due to significant project ramp-up during the year and higher overall development segment margins.
- Revenue backlog increased to a record of AED 6.0 billion, supporting the visibility and predictability of future revenue.
- Cash collections stood at AED 1.5 billion in Q4 and totaled AED 4.5 billion for the full year.
- Sales were supported by an increasing overseas and resident expat customer segment, representing 44% of Aldar’s sales in 2021.
- Yas Island remains a priority location for the Development business, with properties on the island accounting for 62% of the total value of sales throughout 2021.
- Full year gross profit for the Project Management Services business increased by 105% YoY, mainly due to a ramp-up in Aldar Projects’ fee-based business.
- The last quarter of 2021 also saw Aldar complete its first entry into an international market by leading a consortium in the acquisition of an 85.52% stake in one of Egypt’s leading listed real estate development companies, Sixth of October Development and Investment Company (SODIC). The business continues to perform well, with the consortium now pursuing its objective to advance SODIC’s position as a leading national developer by scale and reputation.
Business Unit Highlights
Aldar Investment
Aldar Investment comprises four main segments representing over AED 21 billion of assets under management. Investment Properties houses Aldar’s core asset management business comprising over AED 17 billion of prime real estate assets across retail, residential and commercial segments. Aldar Education is the leading private education provider in Abu Dhabi. Hospitality and Leisure owns a portfolio of hotel and leisure assets principally located on Yas Island and Saadiyat Island. Principal Investments includes Provis, the property management business, Khidmah, the facilities management business, and Pivot, a construction services business.
| Aldar Investment1 (AED MN) | FY 2021 | FY 2020 | % Change |
|---|---|---|---|
| Revenue | 3,824 |
3,089 | (6%) |
| Total Net Operating Income (NOI) | 1,724 |
1,556 | (11%) |
| Occupancy (retail, office & commercial) | 93 % |
88% | (5%) |
[1] Excludes Pivot
- Aldar Investment’s Q4 revenue grew 7% YoY to AED 927 million, with full-year revenue increasing 6% compared to 2020, reaching AED 3.28 billion.
- Net Operating Income increased 11% YoY, reaching AED 1.72 billion for the year, mainly driven by strong performance of the retail portfolio, substantial recovery in the hospitality and leisure business, and increased enrolments in the education business.
- The Investment Properties portfolio’s full-year NOI held firm at AED 1.3 billion. Occupancy across the portfolio of diversified properties increased to 93% from 88% a year earlier.
- Residential NOI for the full year decreased 2% YoY to AED 460 million, mainly due to our programmatic strata unit sales strategy and the expiry of Khalidiya Village leasehold. The overall portfolio showed continued strength, reaching average occupancy of 93%, up from 87% in 2020.
- Retail NOI increased 4% YoY to AED 439 million in 2021, mainly attributed to higher occupancy. Yas Mall achieved 97% occupancy at the end of December, up 16% from a year earlier, with the introduction of new and unique concepts and offerings as part of the successful mall repositioning and redevelopment. In addition, occupancy at the community retail assets saw an increase of 17% from last year to reach 95%, mainly due to the ramp up in Mamsha Al Saadiyat retail. The retail segment’s weighted average unexpired lease terms (WAULT) increased by 38%, demonstrating the long-term leases secured during the year.
- Commercial full-year NOI declined 7% YoY to AED 396 million due to a reduction in revenue in Operative Villages and a one-off income recognised in 2020. The commercial portfolio registered strong leasing growth, ending the year at 93% occupancy, driven by solid leasing in both International Towers and Aldar’s flagship HQ building.
- The robust fundamentals of the Investment Properties portfolio make the business an attractive recurring income platform. This was reinforced by Apollo Global Management’s AED 3.68 billion investment into the Investment Properties business in Q1 2022 - the deal also included an additional AED 1.47 billion investment into a land joint venture with Aldar Properties.
- The Hospitality and Leisure business recovered substantially thanks to the global easing of travel and event restrictions, posting a full-year EBITDA of AED 77 million, up 126% YoY. Strong growth in Q4 was driven by excellent performance during the Formula One event and the holiday season.
- Aldar Education reported a 42% increase in full-year EBITDA to AED 145.9 million. Following an increase in enrolments, Aldar Education reached over 26,000 pupils in total, the highest since its inception. In Q1 2022, the education business also committed to over AED 1 billion in investments to diversify its portfolio of schools and increase the number of students to more than 40,000 by the 2024-2025 academic year.
- The Principal Investments business witnessed 62% like-for-like increase in EBITDA for the year, excluding Pivot, reaching AED 58.0 million. This was largely driven by Aldar’s property management company Provis seeing a significant increase in new contracts. Currently, Provis includes a portfolio of 55,000 residential units, 490,000 Gross Leasable Area (GLA) of retail assets, and 318,000 sqm of commercial assets under management.
FY Corporate Highlights
ESG: Upholding Sustainability Standards- During 2021, Aldar recirculated AED 8.8 billion to the local economy through the National In-Country Value Programme.
- Aldar’s ESG focus saw the company secure the region’s first sustainability-linked loan, with the AED 300 million five-year facility linked to the company’s sustainability performance. Aldar also became the first entity to open a sustainable bank account in the UAE through Standard Chartered.
- Aldar also joined the United Nations Global Compact, adopted the Task Force on Climate Related Financial Disclosures framework, and achieved the highest ESG rating amongst publicly listed real estate developers in the UAE. In Q4, Aldar boosted its inclusion efforts through an agreement with Zayed Higher Organisation to enhance career opportunities and accessibility for people of determination at both a corporate level and across the company’s communities and developments.
Innovation: Supporting, Nurturing and Investing in New Ideas and Tech
- During 2021, Aldar launched the second cycle of its Scale Up programme, which is one of the UAE’s first programmes to attract international start-ups with technologies that have the potential to shape the open metaverse. Aldar also looked to support innovative retail SMEs through its Manassah programme, a six-month entrepreneurship incubator aimed at advancing homegrown retail concepts in the GCC.
- Aldar boosted its exposure to international PropTech startups through investment into a selection of global VC funds, including Fifth Wall, CamberCreek, PI Labs, and Moderne Ventures. These funds allow Aldar to quickly and rationally assess co-investment opportunities within the funds’ startup portfolios, while also enabling the company to identify startups for pilot trials.
- The company also signed an agreement with Majid Al Futtaim to collaborate on the digitalisation of real estate transactions to make property purchases, sales, and management a simple and convenient process for both UAE-based and overseas customers.
People: Empowering Employees in the Workplace
- Boosting its efforts to develop the next generation of talent in Abu Dhabi, Aldar committed to hiring and training 1,000 UAE nationals by 2026. Currently, UAE nationals represent 35.5% of Aldar’s employees, an increase of 6 percentage points compared to 2020.
- Aldar was also named as a top 10 employer for the working environment it has created for women by ‘Great Place to Work’.
Customers: Enhancing Experience
- Aldar's NPS results witnessed a 10% improvement compared to 2020, while its loyalty programme, Darna increased to 57,000 members in 2021.
- Aldar committed AED 500 million to its Yas Mall asset, redeveloping the mall to improve and transform the retail experience and enhance the customer journey.
