Aldar properties
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Annual report 2020
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At a glance

Leading real estate group

Aldar is the leading real estate developer and manager in Abu Dhabi, supported by an owned, strategic land bank of approximately 65 million square metres across prime areas of the Emirate.

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Saadiyat island

  • Mamsha Al Saaiyat
  • Jawaher
  • Saadiyat Reserve
  • Saadiyat Grove
  • Cranleigh Abu Dhabi
  • Saadiyat Beach Club
  • Saadiyat Beach Golf Club
  • Saadiyat retail

yas island

  • West Yas
  • Mayan
  • Yas Acres
  • Water’s Edge
  • Ansam
  • Lea
  • Noya
  • Yas Links
  • Yas W Hotel
  • Yas Mall
  • IKEA
  • ACE Hardware
  • Yas Plaza Hotels

Al raha beach

  • Al Muneera
  • Al Zeina
  • Al Bandar
  • Al Hadeel
  • Al Raha Beach Community Retail
  • HQ Building
  • Etihad Plaza

Al reem island

  • Meera
  • The Bridges
  • Reflection
  • Sun & Sky Towers
  • Shams BOUTIK
  • The Gate Towers and The Arc
  • Boutik Gate
  • Reem Central Park
Teritory of areas

Al Ain

Al Ain

سيح السدرة، الغدير
  • Al Oyoun Village
  • Shabhat Plaza
  • Al Jimi Mall
  • Remal Mall

Key

  • Aldar Development
  • Aldar Investment

sustainable
long-term growth

chairman’s statement

I am delighted to report that your company has had a strong year of progress despite the significant challenges of the Covid-19 pandemic.

The resilience of the Abu Dhabi economy and real estate market have underpinned Aldar’s achievements. We have experienced progressive political, economic, and legislative policy changes intended to make the Emirate a top global destination for quality of living, business opportunity and tourism appeal.

H.E. Mohamed Khalifa Al Mubarak Chairman of Aldar Properties
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business model

creating sustainable, long-term value

Aldar plays a pivotal role in the growth, maturity and diversification of Abu Dhabi. We aim to be a sustainable business by anticipating and responding to the needs of our customers, communities, partners and employees. Using our knowledge, we’re able to act to position ourselves for the market conditions we see ahead to enable our vision of long-term value creation.

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Input

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FINANCIAL

We invest in our business through shareholder capital, borrowings and existing capital.

PHYSICAL

Our land and buildings, the materials and technologies we use, and the natural environment.

SOCIAL AND RELATIONSHIP

The relationships we have with customers, communities, government and partners, and the capabilities of our employees.

Core activities

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SECURE LAND

Land bank and land purchase

ACTIVATE LAND

Building infrastructure

ACQUIRE, MANAGE AND RECYCLE DIVERSE ASSET BASE

Real estate and complementary businesses

MONETISE LAND

Sell land or develop residential properties for sale

DEVELOPMENT MANAGEMENT FOR 3RD PARTY

Including Asset Management

STRATEGY SITS AT THE HEART OF OUR BUSINESS

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FINANCIAL HORIZON
GROWTH AND EXPANSION
CUSTOMER CENTRICITY
OPERATIONAL EXCELLENCE
PEOPLE, INNOVATION, SUSTAINABILITY, AND DIGITAL TRANSFORMATION

Output

Line
FINANCIAL

Long-term growth in income and asset values, creating capacity for us to reinvest in our business and deliver on our promise to our shareholders.

PHYSICAL

Delivering desirable destinations for people who live, work and play.

SOCIAL AND RELATIONSHIP

Our ability to help businesses and people to thrive – including our own employees.

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POWERFUL PERFORMANCE

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Chief Executive Officer’s Statement

Aldar Properties delivered a powerful operating and financial performance in 2020, drawing on its fundamental institutional strengths to successfully navigate through the most difficult challenges that the company has ever faced.

The Company’s strong progress has been founded on the bedrock provided by Abu Dhabi’s effective response to the global pandemic. The Government has acted decisively to protect the health and safety of residents and to support the economy, including measures to sustain confidence in the real estate market. Recovery is now within sight thanks to the effective testing regime as well as a rapid and comprehensive vaccination programme.

Talal Al Dhiyebi Group Chief Executive Officer of Aldar Properties
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Strategy

SUSTAINABLE RETURNS THROUGH SOUND INVESTMENTS AND INNOVATIVE STRATEGIES

Our vision demonstrates what we aim to achieve, while our Mission defines our DNA and what we stand for. These form the cornerstone of our strategic intent and commitment to stakeholders.

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financial horizon

  • Maximise shareholder value.
  • Grow profits and enhance margins.
  • Expand and drive sustainable growth.
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operational excellence

  • Ensure our projects are delivered on time, within budget and agreed quality.
  • Maximise and unlock the potential of our assets.
  • Optimise our processes and strengthen our value chain.
  • Embed environment and quality in all aspects of the business.
  • Drive value and synergy through investment.
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customer centricity

  • Engage customers and end users in all aspects of the business.
  • Deliver exceptional customer experiences.
  • Create customer intimacy through loyalty programmes and unified marketing.
  • Integrate and promote social and environmental sustainability.
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growth and expansion

  • Explore and invest in regional/international expansion.
  • Grow our local portfolio in a sustainable and agile manner.
  • Ensure optimal utilisation and growth ratios of our assets.
  • Actively engage with our key stakeholders to drive growth.
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people, innovation, sustainability & digital transformation

  • Leverage data for more informed decision making.
  • Deploy disruptive and leading technology in all aspects of the business.
  • Empower and embed innovation in all aspects of the business.
  • Attract and retain high-performing talent.
  • Develop and engage our people.
  • Nurture an innovative, sustainable and creative culture.
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2020 financial highlights

Despite a challenging operating environment, the Group recorded a 17% increase in revenue to AED 8.39 billion. Gross profit rose 8% to AED 2.98 billion and net profit held steady at AED 1.93 billion.

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finance & sustainability
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greg fewer
chief financial &
Sustainability Officer

In a transformational year for Aldar Properties, the Company delivered a robust financial performance, made significant progress on sustainability and put in place the building blocks for the next phase of accelerated growth.

Revenue AED 8.4bn +17% (2019: AED 7.1 BILLION)
6.2
2016
6.2
2017
6.3
2018
7.1
2019
8.4
2020
Net Profit AED 1.9bn +0.4% (2019: AED 1.9 BILLION
2.8
2016
2.0
2017
1.9
2018
1.9
2019
1.9
2020
Gross Profit AED 3.0bn +8% (2019: AED 2.8 BILLION)
2.6
2016
2.7
2017
2.7
2018
2.8
2019
3.0
2020
Dividend per share 14.5 fils (2019: 14.5 FILS)
11.0
2016
12.0
2017
14.0
2018
14.5
2019
14.5
2020
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Sustainability

Despite the challenging year influenced by the pandemic and its impacts on different businesses and processes; we have significantly improved our ESG score on different regional and international ratings and Aldar was ranked on the top of all listed real estate companies in the UAE and the third among all listed companies in Abu Dhabi Securities Exchange, as of end of 2020. We have also improved our ESG score well above the industry average for both Dow Jones Sustainability Index and MSCI.

Programme
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Aimed at supporting residential communities, schools, retail partners and home buyers
Initiatives
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National sanitization efforts and waiving administrative fees
Contributed
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For laptops for schools and universities students for distance learning
Retail partners
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To support retail partners with a focus on supporting SMEs and start-ups
Sustainability

highlights from 2020

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operational highlights

Aldar’s performance in 2020 and the Company’s growth trajectory are remarkable given a challenging macro-economic environment of the last year.

They are testament to the strength of our diversified business model, driven by our strong commitment to high standards of corporate governance, the robust and clearly defined strategies of our core businesses, and the hard work and fortitude of our employees.

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First quarter

January
  • Aldar reaffirms commitment to Sustainability in 2020 with the launch of inaugural Sustainability Report in 2019
  • Aldar announces finalists for its Manassah entrepreneurship competition designed to support the UAE’s most ambitious retail and F&B entrepreneurs
February
  • Aldar partners with Abu Dhabi Finance and Abu Dhabi Islamic Bank for a limited time, exclusive home finance offer with rates starting from 2.99% and no fees applicable
  • Aldar announces 7% net profit rise to AED 1.98 billion in 2019
  • Aldar issues dividend of 14.5 fils to shareholders
March
  • Aldar holds AGM via video conference
  • Aldar announces programmes totalling AED 100 million aimed at supporting residential communities, schools, retail partners, and home buyers
  • Aldar invests AED 2 million in Abu Dhabi’s first social impact bond by The Authority of Social Contribution - Ma’an
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Second quarter

April
  • Aldar partners with ADCB, ADIB, and FAB to offer home finance offers for Aldar customers
  • Aldar invests in ‘ATMAH’ programme to increase employment opportunities for People of Determination in Abu Dhabi
  • Aldar partnered with Sandooq Al Watan contributing AED 5 million, to provide 10,000 laptops in support of the distance learning initiative
  • Aldar employees contributed AED 1 million to the ‘Together We Are Good’ programme launched by The Authority of Social Contribution – Ma’an
May
  • Aldar announces Q1 2020 Financial Results / Aldar reports revenue of AED 1.76 billion in Q1 2020
  • Aldar announces cumulative programmes worth up to AED 190 million aimed at supporting residential communities, schools, retail partners, and home buyers
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Third quarter

August
  • Aldar issues second sustainability report and launches new key sustainability commitments
  • Aldar records 21% revenue growth to AED 2.01 billion in Q2 2020
September
  • Aldar unveils ‘Darna’ digital loyalty programme
  • Aldar launches a new building sale at Water’s Edge on Yas Island following solid demand
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Fourth quarter

October
  • ADQ and Aldar sign MOU to develop and manage government capital projects with a total value of approximately AED 40 billion
November
  • Successful launch of Aldar’s Noya on Yas Island which sold out on first day
  • Aldar records 30% revenue growth to AED 2.1 billion in Q3 2020
December
  • Aldar Properties sells Abu Dhabi Golf Complex including the Westin Hotel for AED 180 million
  • Aldar signs agreement with Tabreed to sell Abu Dhabi district cooling assets for AED 963 million
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