The Investment Case of Aldar

[Music] afternoon everybody if you live in Abu Dhabi today or you're planning to move in ababi there's a very high probability that you're living in one of our communities or your kids probably go to one of our schools or you probably work in one of our offices or or you go shopping in one of our malls or you might even vacation in one of our hotels you get the point we touch every aspect of our customers life we are in the business of creating communities and of creating signature experiences we've been a public company for the past 20 years we were founded by mubadala in 2005 to drive the real estate landscape in Abu ghabi and what started as a pure home builder quickly evolved into a very Diversified real estate operating company we've had a number of significant Milestones through our lifetime it started in 2013 with the merger with Sur which was the second largest real estate company at the time creating a national champion and then in 2018 we acquired the assets of tdic which is basically the land bank that we have today in s s is probably our most precious land bank it sits within the Cultural District this is where you have all the museums the Lou the Guggenheim the Z Nation Museum if you've been following we just launched the Mandarin residences that is opposite to Z Nation Museum during F1 weekend um and during that same year we established alar investment properties alar investment properties is the largest most Diversified Real Estate platform this is the entity that holds all our recurring residential commercial retail and Logistics real estate assets and when Co hit in 2020 the defensibility of that portfolio was tested AIP was down high single digits but our peers were down 40 50% why because they had a lot of single sector exposure single asset exposure but we didn't and when many companies did not pay a dividend during covid we did following covid the government enacted a number of transformational structural reforms the golden Visa program 100% ownership of on sure legal entities and we saw that as an opportunity where a real estate player such as ourselves was going to significantly benefit so what we did is We embarked on a new operating model and we took what were previously departments within the company so development the Home Building business and investment the recurring income business and we set up their own divisions so their own management committees their own investment committees their own legation of authority because we want it to be agile we want it to be able to grow uh very quickly fast forward this is how the business looks today so you have AAR development which has three main verticals your UAE homeb Builder project management so interestingly we build a lot of the projects on behalf of the government so it's a hybrid of a PP model where we build a lot of the bridges roads government buildings um for the government here in Abu zabi uh and it's quite a profitable business for us and we have an 80 billion backlog for that and then we have our present Center nationally which is Egypt and London the second segment is alar investment which has four Capital Pools the most significant is AIP which I just mentioned the recurring income real estate we have a large large Hospitality portfolio which has over 4,250 Keys we are the largest private K12 education player here in Abu zabi and one of the largest in the UAE and we have a thriving integrated property management and facility management business from 2020 to 2023 we've more than doubled our market cap we have more than doubled our eida if you look at our asset under management which is again the recurring income business we've more than doubled that our sales for the Home Building business is up by almost eight times our backlog which are the sales that we haven't recognized yet went from 3.5 billion to today to over 45 billion Dirhams and what started as an Abu Dhabi only company in 2020 today has a very successful franchise in Dubai in Ras Egypt through sodic and London uh through London Square the growth in our home building business has been incredible so our average run rate historically was about 3 and a half billion dams a year and you see the growth from 2020 we've been doubling every year 3 and a half to over seven to over 14 to over 28 we've stopped doubling for now but we're still growing so so this year year to date we continue to grow at a pace of 20% and the interesting point to note is Abu Dhabi continues to have significant room for growth to give you some perspective Abu zabi sales in 2023 and the residential Market was about 50 billion dams Dubai was 300 billion Dirhams so almost six times the size so what does that tell us that Abu Dhabi continues to have significant room for growth both from a Quantum perspective and from a price perspective our recurring income business has also been growing significantly our adjusted Eid which is the closest metric to cash has doubled between 21 and 23 and we continue to grow at a double digit Pace this year where we've deployed significant Capital over the past few years our most not acquisition in 2022 was the adgm towers next door adgm was 76% occupied back then it is now more than 98% occupied one of the key highlights this year I think has been the commercial office demand in Abu Gabi we cannot keep up with the demand so other than adgm getting leased up we opened a new office building at the beginning of this year and it is more than fully occupied today and we're building additional spaces in Al Maria and the difference that we are seeing is this significant International demand coming into Abu zabi and we're not talking about satellite offices we are talking about real offices with proper presence 40 50 100 employees moving their families into Abu Dhabi because they want to be present in this market so I'm also Chief uh financial and sustainability officer and the motto that we take when it comes to sustainability is sustainability is good for business what do we mean it means you can be responsible but you can look at it from a commercial perspective as well for example we've done considerable retrofitting investments into our existing assets we've invested over50 million Dirhams into our existing assets with a payback period today that is 3 to four years so it's been more profitable to invest into retrofitting than it is investing into the actual uh real estate on our new builds what we do we have a lot of pillars in terms of achieving our Net Zero targets so we have a net zero Target of 2050 in line with the U's government uh strategic Net Zero plan to be Net Zero by 2050 and in all our developments we are introducing uh green supply chain Green Design from a customer perspective if I am able to tell my customer that my Villas or apartments are more efficient in terms of energy consumption or water consumption compared to my competitors this is good for business again being sustainable does not mean you have to compromise on your fiduciary duty to shareholders the second leg of sustainability if we talk about the ESG angle social we're very active on the CSR front over the past 6 seven years we've invested more than 225 million Dirhams into social in initiatives the things that we care a lot about and we focus on is education given the significant uh role we play in that sector uh workers welfare and inclusion for people of uh determination and then the last thing which I'd like to emphasize is we take governance very seriously we have a 21% shareholder base that is international one of the largest here uh in the market we are very serious when it comes to reporting and transparency I urge you to read our investor packs we are the most uh detailed when it comes uh compared to a lot of our peers and just concluding in terms of performance year to date we're up more than 50% compared to last year and while we haven't given our full guidance for next year yet we have teased the market that we're going to grow at least another 35% going forward so the platform continues to have considerable room for growth so if you haven't invested in alar today I urge you to consider so thank you very much world