DELIVERING DESIRABLE DESTINATIONS ANNUAL REPORT 2017

Transcription

1 DELIVERING DESIRABLE DESTINATIONS ANNUAL REPORT 2017

2 Introduction DELIVERING DESIRABLE DESTINATIONS Aldar Properties PJSC is the leading real estate developer and asset manager in Abu Dhabi and through its iconic developments, it is one of the most well known in the United Arab Emirates, and wider Middle East region.

3 Contents STRATEGIC REPORT Highlights of At a Glance 6 Chairman s Statement 8 Chief Executive s Review 10 Why Abu Dhabi? 14 Our Strategy 18 Operational Review 22 Financial Review 34 Board of Directors 38 Executive Management Team 40 GOVERNANCE Governance 42 Board of Directors Report 63 FINANCIAL STATEMENTS Strategic Report Independent Auditors Report 64 Consolidated Statement of Financial Position 69 Consolidated Income Statement 71 Consolidated Statement of Comprehensive Income 72 Consolidated Statement of Changes in Equity 73 Consolidated Statement of Cash Flows 74 Notes to the Consolidated Financial Statements 76 Aldar Annual Report

4 Highlights of 2017 Aldar is the largest listed real estate group in Abu Dhabi by market capitalisation, and one of the region s most recognised master developers. FINANCIAL HIGHLIGHTS Net Profit (AED BN) Revenue (AED BN) Aldar Annual Report 2017

5 Strategic Report Net profit AED 2.0bn (2016: AED 2.8 BILLION) Net operating income from recurring revenue assets AED 1.6bn (2016: AED 1.6 BILLION) Total assets AED 36bn (2016: AED 36 BILLION) Gross profit AED 2.7bn (2016: AED 2.6 BILLION) Earnings per share 25 fils (2016: 35 FILS) Off-plan development sales AED 3.5bn (2016: AED 3.5 BILLION) Dividend per share 12 fils (2016: 11 FILS) Gross Profit (AED BN) Dividend per share (FILS/SHARE) Aldar Annual Report

6 Highlights of 2017 continued YEAR IN REVIEW FEBRUARY 2016 full year net profit up 8% Strong financial performance supported by maturity of asset management business and significant land plot sales. FEBRUARY Moody s upgrades Aldar to Baa2 Follows on from S&P upgrade to BBB in August MARCH AED 3 billion investment plan committed Four further development projects announced to support asset management business growth. APRIL The Bridges launched The Bridges, a high-quality, mid-market residential development on Reem Island, Abu Dhabi, launched and fully sold in three weeks. MAY Yas Acres construction contract AED 2.2 billion in construction contracts awarded during first half of 2017, driven by Yas Acres and Mayan. MAY twofour54 Appointed development manager to first phase of new twofour54 media and entertainment freezone on Yas Island. 4 Aldar Annual Report 2017

7 Strategic Report AUGUST Repton School Completion and handover of Repton School, the third investment plan asset to be completed. OCTOBER The Bridges construction contract award AED 745 million contract awarded to develop 1,272 unit development. DECEMBER International Tower Acquisition of AED 658 million International Tower office building, to support further short-term asset management growth. SEPTEMBER Water s Edge launched Launch of 2,255-unit Water s Edge, a waterfront development on Yas Island, first phase sold out in the first week. NOVEMBER Board and management changes Mohamed Khalifa Al Mubarak appointed as Chairman (previously Chief Executive Officer) and Talal Al Dhiyebi appointed Chief Executive Officer (previously Chief Development Officer). Aldar Annual Report

8 At a Glance OVERVIEW All of Aldar s activities are currently based within the Emirate of Abu Dhabi, where it owns a significant land bank and real estate property portfolio. The activities of the Group are split into two main pillars, Development Management and Asset Management. LEADING REAL ESTATE GROUP We use our experience and knowledge of the Abu Dhabi real estate market to create shareholder value through development of our land bank and growth of our asset management business. DEVELOPMENT MANAGEMENT Aldar is the largest developer within Abu Dhabi and since inception, has completed 24,000 residential units across the Emirate. As at 31 December, a further 7,000 residential units were under development. Aldar owns a significant land bank of 75 million square metres across Abu Dhabi, that provides optionality throughout the cycle to address specific segments of the real estate market. ASSET MANAGEMENT Aldar owns and manages a diverse asset management portfolio of AED 18 billion of assets, all within Abu Dhabi. The portfolio is split across four main real estate asset classes, residential, retail, office and hotels. OUR MARKETS RESIDENTIAL Aldar sells residential property through its development business. The asset management business also owns a significant residential portfolio, which is leased to individual and corporate tenants. RETAIL Aldar has developed a substantial retail footprint within Abu Dhabi that addresses both destination retail, such as Yas Mall and a broad network of community retail. OFFICE Aldar has both developed and acquired a strong office portfolio, predominantly catered towards the prime Grade A space within Abu Dhabi. HOTELS Aldar owns a unique cluster of hotels on Yas Island that benefit from their proximity to the airport and continued activation of Yas Island as the leisure and entertainment centre of Abu Dhabi. Development Management Aldar Asset Management 6 Aldar Annual Report 2017

9 Strategic Report WHERE WE OPERATE UAE ABU DHABI Aldar Annual Report

10 Chairman s Statement Dear shareholder, LONG-TERM SHAREHOLDER VALUE I am delighted to be reporting on another successful year for Aldar, and on behalf of the Board and executive management team, I would like to thank you for your support. Aldar plays a significant role in the growth and diversification of Abu Dhabi s economy, in line with its 2030 Vision. The economy was steady in 2017 following a year characterised by a slowing global economy and ongoing commodity price weakness in Notably, oil prices remained higher than in the previous year and moved upwards in the second half, finishing the year above US$60 per barrel. More importantly, the non-oil economy is expected to grow at a faster rate, supported by continuing government investment in infrastructure projects as well as the increasing interest in Abu Dhabi as a destination of choice for travellers, residents and businesses. Several of these projects are moving closer to completion, including the Midfield Terminal at Abu Dhabi International Airport and the Baraka nuclear power station, and more are expected to commence, such as the Guggenheim and Sheikh Zayed National Museum. Meanwhile, Abu Dhabi Global Market has made great strides in developing itself as a leading international financial centre, and November 2017 saw the official opening of the Louvre Abu Dhabi, amid great excitement and international acclaim. 8 Aldar Annual Report 2017

11 Strategic Report We play a significant role in the growth and diversification of Abu Dhabi s economy, in line with its 2030 Vision. Not only does the Louvre significantly enhance Abu Dhabi s cultural offering, it will also inject fresh impetus into its tourism industry, with the rest of Abu Dhabi benefiting accordingly, including Aldar. Further building on the Emirate s reputation as a leading entertainment destination, Warner Bros Abu Dhabi theme park and SeaWorld Abu Dhabi are also set to be completed in 2018 and 2022 respectively. Aldar made further progress in 2017 in implementing its successful destination strategy. A number of important milestones were achieved: Ansam and Al Hadeel residential projects were completed, with customer handovers taking place from December; a number of key development construction contracts were awarded; and a contract for Aldar to build a new media hub for twofour54 on Yas Island was secured. All of these initiatives support the overall development of Yas Island into a popular and multicultural destination for residents, tourists and investors, a thriving community offering a wide variety of places to live, shop and be entertained. We also launched two new residential developments, The Bridges and Water s Edge, which focused on the underserved mid-market segment of residential within Abu Dhabi. More generally across Abu Dhabi, Aldar has continued to play a key role in the Emirate s development into a thriving hub saw the expansion of our residential and retail offerings all the way from Reem Island, with the launch of The Bridges, to Al Ain, with the extension of Al Jimi Mall: further evidence of the common thread that Aldar represents the fabric of Abu Dhabi. Our operational progress is reflected in our financial performance. We recorded AED 3.5 billion of development sales in 2017, supported by the launch of two new residential developments and achieved AED 1.6 billion in net operating income from our high-quality portfolio of recurring revenue assets. To reflect our confidence in our strength and future prospects, and to reward shareholders for the continued support and loyalty, we have recommended a dividend of 12 fils per share, from 11 fils per share in 2016, representing a 9.1% year on year growth in distribution to shareholders. Also, we further progressed our dividend policy, in line with our commitment to returning cash to shareholders based on the performance of both of our business pillars. Looking ahead to 2018, we have many reasons to be optimistic. Under the leadership of our newly appointed Chief Executive Officer, Talal Al Dhiyebi, we will continue to pursue our strategy of delivering the right property to the right part of the market at the right time. Our experienced team, Abu Dhabi s strong economic fundamentals and its growing reputation as an international business, leisure and entertainment hub position Aldar well to set a new standard for real estate in 2018 for the benefit of our customers, residents and our shareholders. Mohamed Khalifa Al Mubarak Chairman Aldar Annual Report

12 Chief Executive s Review DELIVERING DESIRABLE DESTINATIONS Aldar s uncompromising focus on delivering desirable destinations supported both a strong operational and financial performance during Despite wider macroeconomic and geopolitical challenges across the region, there are clear signs of strength in the Abu Dhabi property market demonstrated through strong sales for our developments and robust occupancy across our portfolio of diverse real estate assets. As key pieces of infrastructure as well as entertainment and cultural attractions drive people to the Emirates, Aldar s high-quality developments cater for the wide-ranging needs of residents, investors, businesses and visitors looking to Abu Dhabi as a destination of choice. STRONG FINANCIAL POSITION Our ability to outperform the wider Abu Dhabi market is testament to our maturation into a stable, dependable and sustainable developer which is reflected in our financial performance. The value of development sales amounted to AED 3.5 billion in 2017, mainly driven by the launch of new developments as well as sales for existing developments including West Yas and Yas Acres. To deliver consistent returns through development cycles, Aldar s unrelenting focus on owning and managing a diversified portfolio of high-quality assets across the residential, retail, office and hospitality sectors continues to yield results. 10 Aldar Annual Report 2017

13 Strategic Report Our strategy, which intertwines our success with Abu Dhabi s ever-increasing reputation as a desirable place to live, work and visit, is creating value for customers, shareholders and the Emirate. Recurring revenue from our investment portfolio was steady at AED 1.6 billion, reflecting its defensive qualities and the continued demand for our high-quality properties. Our full year net profit was AED 2 billion for DEVELOPMENT MANAGEMENT Our agile approach to adapt to the changing market is made possible due to our flexible destination development strategy and active management of our extensive land bank. While closely monitoring buyers fast-changing needs, we never compromise on our focus on creating new communities across our key destinations. During the year, we launched two new residential developments, The Bridges and Water s Edge, targeting the underserved high-quality mid-income market. The response to these developments was exceptional with almost all units released selling out in a matter of weeks. While we are expecting a more normal pace of sales for the future release of phases at these developments, Aldar believes opportunities exist to develop residential products catering to this segment of the market in Including the developments launched this year, we now have 7,000 residential units and villas under development across the Emirate, 5,000 of which are on Yas Island, 83% of which are already sold. Our key focus remains on evolving the urban fabric of Abu Dhabi. However, while we will concentrate on expanding the communities we have established in our three key destinations, we believe other areas of Abu Dhabi and beyond also provide opportunities and we will look to address these in ASSET MANAGEMENT We use our deep knowledge of the Emirate to build, manage and acquire properties and create desirable destinations. Our investment portfolio has out-performed the market with occupancy above 90% for our retail and residential assets, 88% for our office assets and 78% for our hospitality portfolio. In all segments, we are seeing a flight to quality as lessees seek the best developments in the best locations. Across our retail, office and residential assets, occupiers continue to commit, albeit following a more considered decision process. We remain committed to growth of our asset management business and as such increased our investment plan to AED 5 billion from AED 3 billion. With a majority of the original plan committed, the additional allocation will focus on addressing nearer team growth through acquisition opportunities. As part of this plan, we completed the acquisition of International Tower in December 2017, a high-quality office tower location in the heart of one of Abu Dhabi s premier business hubs, Capital Gate District. The acquisition increases the size of our office portfolio by 19% and brings the total NLA across our entire portfolio to 240,000 sqm. We also retained a portion of the new developments launched throughout the year for our investment portfolio, underscoring our belief in the wide appeal of Water s Edge and The Bridges for homeowners as well as occupiers. Yas Mall experienced record footfall driven by a major event drive including a 24-hour Eid Al-Fitr sale in June 2017, which saw more than 250,000 visitors attend the mall in just one day. Aldar Annual Report

14 Chief Executive s Review continued PEOPLE We employ top professionals in their fields who work with partners and suppliers to develop, build, own and operate real estate successfully and remain on top of the constantly changing environment. It is due to the hard work and dedication of this team that we were able to enjoy a successful 2017 and I would like to personally thank every employee at Aldar for their contribution. We want Aldar to be a place where people want to work. That is evident in the fact that, this year, 10% of our employees celebrated a significant milestone, reaching a 10-year tenure at Aldar. Our people strategy is to create a marketdriven performance culture, to enable our team to reach their full potential and prepare us for the future. Our aim is to become smarter and more efficient at what we do in order to deliver long-term sustainable shareholder value. We know the future of Abu Dhabi and the wider Middle East region will result from the bright ideas of the youth of today. This is why a key focus for 2018 is to empower and engage our youth. Recently, we launched the Aldar Youth Council to create a platform for our dozens of employees aged between 20 and 30 years to contribute to the future of this Company. This will prove that Aldar can make a difference not only to those who live, work and play in our developments but the whole Emirate. Our new set of values Performance, Smart, Innovation, Integrity and Team Work and Collaboration underpin everything we do. Aligning our business decisions with our culture, values and strategy is also key to demonstrating how we are committed to developing a long-term sustainable business. OPERATING EFFICIENCY At the start of 2018, we announced a realignment of the business into two operating divisions, Development Management and Asset Management. This simplifies our structure and reflects our focus on operating in the most efficient manner to create more value for our shareholders. By streamlining and simplifying our internal operating model under these two pillars, we are well positioned for a successful year ahead. We have also centralised and realigned our support functions to reflect the importance of our people, digital transformation and innovation as our business environment evolves. OUTLOOK We have ambitious plans for the future and head into the year with an ambitious development programme and a strong portfolio of efficiently-operating assets. Enabled by a team of dedicated individuals, the success of our strategy to deliver desirable destinations is evident in our stable financial position as well as in the creation of communities that respond to the changing lifestyles of our customers. While the external environment may provide a constant challenge, Aldar s resilience, agility and determination to maintain our place as Abu Dhabi s leading developer positions us well to achieve our vision this year and in the years ahead. Talal Al Dhiyebi Chief Executive Officer 12 Aldar Annual Report 2017

15 Strategic Report Aldar Annual Report

16 Why Abu Dhabi? Abu Dhabi is the largest of the seven Emirates that comprise the United Arab Emirates (UAE). Occupying over 80% of the country s territory on 700 kilometres of Arabian Gulf coastline, Abu Dhabi is the UAE s capital and second most populous city with close to three million inhabitants. WHY ABU DHABI? WHERE WE OPERATE The Emirate holds 6% of the world s oil reserves and 3% of the world s gas reserves according to OPEC. However, the Emirate s long-term strategy is to diversify the Abu Dhabi economy away from its dependence on oil and gas as the single major revenue source, which currently makes up about half of Abu Dhabi s GDP. Its flexible approach allows it to adapt to changes in the macro-economic environment however its core areas are the development of a high-end tourism market and an economy-wide focus to raise productivity. The government is currently investing heavily in innovation and development to create a knowledge-driven economy to support its vision across nine policy pillars, which are intended to form the architecture of the Emirate s social, political and economic future. Manufacturing, banking and finance, aviation and tourism and real estate are integral elements of today s Abu Dhabi economy. Abu Dhabi maintains one of the highest GDP per capita levels in the world, estimated by S&P Global Ratings at about $70,900 per capita in S&P estimates the Emirate s population increased by 80% between 2008 and 2017 to 3.0 million people. S&P Global Ratings affirmed Abu Dhabi s AA/A-1+ sovereign credit rating in July 2017 with a stable outlook on the Emirate s strong fiscal and external positions. Rapid development and urbanisation, coupled with the fast historical population growth and relatively high income, has transformed Abu Dhabi into a large and thriving city. Leading this transformation is the Abu Dhabi Plan, a blueprint to guide the Emirate s growth to achieve its vision. With 25 goals across five strategically important sectors, the blueprint sets out 83 programs which will be continuously monitored to deliver the overall plan and ensure the Emirate s sustainable development. Real GDP growth in % (S&P) Many of the initiatives which support the Abu Dhabi Plan feed positively in to the real estate market. There are a number of attractions currently under way on both Yas Island and Saadiyat Island that will continue to drive tourism into the emirate and further diversify non-hydrocarbon revenue streams. Some of these key projects include Warner Bros Abu Dhabi and Sea World Abu Dhabi, both on Yas Island and the recently completed Louvre Abu Dhabi, that opened on Saadiyat Island in November The new Midfield airport terminal will serve the rising number of passengers flying through Abu Dhabi International Airport and provide a lift to the transport, aviation and retail sectors. Education is another significant area of focus, with the government committed to improving education standards. Non-hydrocarbon real GDP growth in % (SCAD) 14 Aldar Annual Report 2017

17 Strategic Report Through the development and management of properties and schools as well as through its employment of UAE Nationals, Aldar s operations directly support the Abu Dhabi Plan to; create integrated urban areas; an attractive tourist destination; and provide a platform for effective participation of UAE Nationals in the labour market. Abu Dhabi s property market has matured over the last decade, supported by the introduction of regulation aimed at protecting both developers and tenants. Key to this maturation is the Abu Dhabi real estate law, introduced in 2016, which aims to create a more transparent and professional property market by enhancing industry standards. The new law is a positive step towards attracting more investment into the emirate and deals with many of the concerns raised by both investors and developers over the last ten years. For further information see Our Market section. While Abu Dhabi is renowned for the depth of its hydrocarbon industry, its ability to successfully utilise its reserves has provided a solid base from which to diversify its economy. While growth is expected to moderate given the current price of oil and a more prudent approach to investment, Abu Dhabi remains an attractive destination to live, work and invest, given the emirate s comparatively transparent operating environment and its reputation as the capital of one of the most liberal countries in the Middle East. Population growth between 2008 and % (S&P) Nominal GDP in 2016 AED 729bn (S&P) Abu Dhabi real estate activities experienced compound annual growth between 2011 and % (SCAD) Real estate activities nominal GDP in % (SCAD) Aldar Annual Report

18 Why Abu Dhabi? continued MARKET OVERVIEW Aldar operates within Abu Dhabi s four main real estate classes; residential, retail, office and hospitality. This section provides an overview of the performance of Abu Dhabi s residential, retail, office and hospitality real estate market in 2017 and provides an outlook for the coming years. Abu Dhabi Prime Rental Clock Q Source: JLL Rental Growth Slowing Rental Growth Accelerating Rents Falling Residential Rents Bottoming Out Retail Hotel Office Abu Dhabi Prime Rental Clock Q Residential RESIDENTIAL During 2017, the Abu Dhabi residential market saw the delivery of 3,000 units, bringing the total stock of residential units to approximately 251,000. As in previous years, the materialisation rate of units was lower than expected as units were delayed. Off-plan development sales were driven by new product offerings into the market, addressing the underserved high quality, investment zone mid-market space. OUTLOOK The supply of new residential units will continue to focus on investment zone locations such as Reem Island, Yas Island, Saadiyat Island and Al Raha Beach, as opposed to the traditional locations on Abu Dhabi Island. These destinations represent more than 60% of residential projects currently under construction and will support investment zone market share growth to 12% by 2020 as opposed to just 8% today. OFFICE There were no major new office completions during 2017, with the total amount of office space supply remaining steady at 3.5 million sqm of GLA as at the end of 2017, in line with Vacancies across the wider market reached 22% as at the end of 2017, up from 20% in December 2016, although this was considerably lower in the high-quality Grade A office space. Office rents remained broadly stable for both Grade A and B over the course of the year. OUTLOOK With approximately 200,000 sqm and 60,000 sqm of GLA expected to enter the market in 2018 and 2019 respectively, this is likely to put pressure on rental prices as tenants look to negotiate better rates and incentives to stay in existing locations. Rental Growth Slowing Rental Growth Accelerating Rents Falling Rents Bottoming Out Office Hotel Rental and sales prices are likely to face some pressure in the near term; however, there remain opportunities in the market for the right product and location. Source: JLL Retail 16 Aldar Annual Report 2017

19 Strategic Report RETAIL Similar to 2016, there were no major retail completions handed over during Total retail space within Abu Dhabi as at the end of 2017 stood at 2.6 million sqm GLA. The last major retail delivery was the 225,000 sqm GLA Yas Mall on Yas Island, that entered the market in Q Some retailers reported lower sales as a result of generally lower consumer sentiment given lower oil prices and the spillover effects onto the economy. Despite this however, rents within primary retail malls remained stable over the course of Vacancies in key retail malls remain low at 2%, with continued demand from retailers for access to primary retail malls. OUTLOOK There is currently approximately 300,000 sqm GLA retail space under construction and set for completion over 2018 and This is predominantly driven by the Al Maryah Central super-regional mall on Al Maryah Island, waterfront expansion of Marina Mall and smaller community retail projects. HOSPITALITY The supply of hotel keys in Abu Dhabi remained stable with 600 rooms entering the market in 2017, taking the total number of keys to 21,800. Despite decreased government spending, occupancy remained relatively stable at 72%, supported by a strong increase in hotel guests into Abu Dhabi. OUTLOOK Abu Dhabi s hospitality pipeline for 2018 and 2019 completion is mainly located off Abu Dhabi Island with a majority of these projects focused on the cultural district of Saadiyat Island. The opening of The Louvre Abu Dhabi in November 2017 will continue to support visitor numbers as will the opening of Warner Bros Abu Dhabi in the summer of Note: All data sourced from JLL. Residential market supply ( 000s UNITS) E E 267 Source: JLL Office market supply (MILLION SQM GLA) 3.5 Hotel market supply ( 000s KEYS) E E 25.7 Source: JLL Retail market supply (MILLION SQM GLA) The introduction of VAT from 1 January 2018 is likely to further impact consumer spending power, which could impact sales E E E E 2.9 Source: JLL Source: JLL Aldar Annual Report

20 Our Strategy CREATE LONG-TERM SHAREHOLDER VALUE OUR VISION DELIVERING DESIRABLE DESTINATIONS MAXIMISING VALUE Strategy Characteristics Dividend policy Debt policy DEVELOPER Monetise and activate our land bank while creating leading destinations Be recognised as the developer of choice Deliver and sell our projects on time, quality and cost 75 million sqm land bank 10 projects under development Stabilised AED 1 billion gross profit 1,500 unit annual launch guidance through the cycle 6 million sqm approved GFA across our three destinations 20-40% pay-out of realised profit on completion of projects Up to 25% LTV against costs incurred and land Read more about development management on page 22 ALDAR THE ASSET MANAGER Grow a large and diverse real estate portfolio Be recognised as the landlord of choice Create superior value in our portfolio AED 18 billion of assets Diverse high-quality, asset base across retail, residential, office and hotels AED 1.6 billion net operating income (NOI) AED 5 billion investment plan in place to grow NOI 65-80% pay-out of the distributable free cash flow Maintain gross debt of 35-40% LTV against assets Read more about asset management on page Aldar Annual Report 2017

21 Strategic Report Aldar Annual Report

22 Our Strategy continued Strategic priority Monetising our land bank by launching new developments and enhancing our three existing key destinations: Yas Island, Reem Island and Al Raha Beach Highlights AED 3.5 billion in development sales value Opened up high-quality mid-market off-plan residential market with launch of The Bridges and Water s Edge Completed and commenced handover on Ansam and Al Hadeel Awarded AED 3 billion in construction contracts Awarded development management contract for AED 1 billion twofour54 media free-zone Maximising the value of our recurring revenue assets by driving valueaccretive growth and enabling optimisation of the asset management portfolio. AED 1.6 billion NOI guidance achieved Increased AED 3 billion investment plan to AED 5 billion Completed and opened Repton School Completion of International Tower acquisition Maintained strong occupancies across portfolio Optimising our capital structure through a clear and robust financial policy Maintained gross debt in line with debt policy Updated conservative financial debt policy to optimise gross debt capacity across both Development Management and Asset Management Updated dividend policy to provide further transparency and underscore commitment to shareholder returns 20 Aldar Annual Report 2017

23 Strategic Report Objectives for 2018 Target AED 3.7 billion in development sales Near-term focus to remain on underserved mid-market segment Complete and commence handover on four projects, Nareel Island, Al Merief, West Yas and Meera KPIs Off-plan development sales (AED BN) Off-plan units launched , ,900 Single-digit NOI growth Commit remaining investment plan allocation to drive near-term NOI growth Maintain strong occupancy levels across portfolio Complete and open Al Jimi Mall expansion Net operating income (NOI) (AED BN) Maintain gross debt in line with financial debt policies Refinance sukuk Gross debt (AED BN) Average debt maturity (YEARS) Aldar Annual Report

24 Operational Review DEVELOPMENT MANAGEMENT The principal activities of the development business are property development and development management HIGHLIGHTS Two major off-plan development launches; The Bridges and Water s Edge AED 3.5 billion development sales AED 3 billion construction contract awards during the year 83% sold across all Aldar units launched for sale Close to 7,000 residential units currently under development, 5,000 on Yas Island Commenced handover on completed projects Ansam and Al Hadeel PROPERTY DEVELOPMENT The primary focus of the development business is property development. Aldar s diverse land bank supports a launch sequence throughout the cycle. Aldar has a significant development pipeline in place, that currently provides visibility out to During the year there were two major development launches, The Bridges and Water s Edge. Both developments catered towards to the underserved mid-market segment of residential within Abu Dhabi and witnessed significant buyer interest. DEVELOPMENT MANAGEMENT Further to developing our own land banks and developments, Aldar tenders to project manage third-party developments on a fee basis. There are currently two fee-based projects under development, West Yas on Yas Island and Abu Dhabi Plaza in Astana, Kazakhstan. 22 Aldar Annual Report 2017

25 Strategic Report LAND BANK Aldar s land bank includes 75 million sqm of land across the Emirate of Abu Dhabi. This map highlights Aldar s key land bank and projects across Abu Dhabi. Aldar s land bank provides many advantages from a development perspective and creates optionality as to how and when land is developed. This translates into a strong development pipeline that can mitigate the different phases of Abu Dhabi s perpetual real estate cycle meaning that we expect development opportunities throughout the cycle. Land bank split 75 million sqm Destinations 14% Abu Dhabi Island 9% Abu Dhabi other 77% Destinations approved GFA 6 million sqm Yas Island 65% Al Raha Beach 18% Reem Island 17% Sales performance (AED BN) Al Sila a Tilal Liwa Hotel AL AIN Seih Sdeirah Alghadeer GHANTOOT Boutik Al Ain Al Oyoun Village Al Ghuraiba Al Naqla Shabhat Plaza Al Jimi Mall Al Jimi Mall Extention Remal Mall Completed Developments Developments in Progress Land Bank Lulu Island Burj Mohammed Bin Rashid and World Trade Center Abu Dhabi Khalidiya Village Nareel Island Tala Tower Baniyas Towers Al Mashtal Al Bateen Park Al Gurm REEM ISLAND Sun and Sky Towers Boutik Sun and Sky The Gate & Arc Towers Boutik Gate Meera Bridges Al Mamoura Al Murjan Tower North Park Imperial College London Diabetes Centre Sas Al Nakhl AL RAHA BEACH HQ Building Al Muneera Al Zeina Al Bandar Al Hadeel Al Raha Beach West Al Raha Gardens and Gardens Plaza Watani Al Rayyana Golf Gardens Injazat Ethihad Plaza Al Merief Masdar Abu Dhabi Aviation Complex Al Ajban YAS ISLAND Ferrari World Abu Dhabi Yas Marina Circuit Yas Links Yas Viceroy Yas Marina and Yacht Club Yas Water World Yas Mall Ikea Ace Hardware big box retail Yas Plaza Hotel Ansam West Yas Mayan Yas Acres Water s Edge Al Falah Shamkha Motor World Aldar Annual Report

26 Operational Review continued DESTINATION DEVELOPMENT As the master developer, Aldar is responsible for the long-term vision and development of these land banks. Bringing in third-party developers to support this vision reduces our long-term destination development risk and widens the array of products for end-users and investors. YAS ISLAND 30km outside of Abu Dhabi downtown, in the direction of Dubai Key completed assets include the Yas Marina Circuit, Ferrari World, Yas Waterworld and Yas Mall Close to 2,000 hotel keys currently on Yas Island, all part of asset management portfolio Major tourism projects currently under development including Warner Bros World Abu Dhabi theme park and Seaworld Abu Dhabi, set for completion in 2018 and 2022 respectively New twofour54 media and entertainment free-zone that will initially bring approximately 5,000 working professionals onto Yas Island 5,000 residential units under development across five projects including West Yas, Mayan, Yas Acres, Water s Edge and recently completed Ansam will support significant population growth over the coming years 24 Aldar Annual Report 2017

27 Strategic Report REEM ISLAND High-rise urban living within close proximity to downtown Abu Dhabi Two major completed projects include the Sun & Sky Towers, which offers a mix of residential and office space, and the 3,500 residential unit Gate Towers and The Arc 1,700 units under development across two projects; Meera and The Bridges AL RAHA BEACH A premium residential destination, running along the waterfront Close-proximity to the main highway links into Abu Dhabi and Dubai as well as the Abu Dhabi International Airport and Yas Island Over 3,000 units completed across four developments including, Al Bandar, Al Muneera, Al Zeina and the recently completed Al Hadeel Aldar Annual Report

28 Operational Review continued DEVELOPMENT PIPELINE COMPLETED Ansam Type: Prime residential apartments Land: Investment zone Location: Yas Island Units launched: 547 Sold*: 93% * % sold as at 31 Dec 2017 COMPLETED Al Hadeel Type: Prime residential apartments Land: Investment zone Location: Al Raha Beach Units launched: 233 Sold*: 93% EXPECTED COMPLETION: 2018 Al Nareel Type: Exclusive land plots for villa development Land: Non-investment zone Location: Nareel Island, off Abu Dhabi Island Units launched: 148 Sold*: 59% EXPECTED COMPLETION: 2018 Al Merief Type: Land plots for villa development Land: Non-investment zone Location: Khalifa City Units launched: 281 Sold*: 100% 26 Aldar Annual Report 2017

29 Strategic Report EXPECTED COMPLETION: 2018 Meera Type: Residential apartments Land: Investment zone Location: Reem Island Units launched: 408 Sold*: 91% EXPECTED COMPLETION: 2020 The Bridges Type: Mid-market residential apartments Land: Investment zone Location: Reem Island Units launched: 636 Sold*:93% EXPECTED COMPLETION: 2019 Mayan Type: Prime residential apartments Land: Investment zone Location: Yas Island Units launched: 512 Sold*: 81% EXPECTED COMPLETION: 2018 West Yas Type: Villa development Land: Investment zone Location: Yas Island Units launched: 1,017 Sold*: 71% EXPECTED COMPLETION: 2019 Yas Acres Type: Villa and townhouse development Land: Investment zone Location: Yas Island Units launched: 652 Sold*: 66% EXPECTED COMPLETION: 2020 Water s Edge Type: Mid-market residential apartments Land: Investment zone Location: Yas Island Units launched: 1,236 Sold*: 79% Aldar Annual Report

30 Operational Review continued ASSET MANAGEMENT The principal activities of the asset management business are predominantly based around four key real estate asset classes: residential, retail, office and hotels HIGHLIGHTS AED 1.6 billion net operating income guidance met Resilient occupancy performance across all key asset classes Investment plan increased to AED 5 billion from AED 3 billion Completion of Repton School Acquisition of International Tower office building completed in December 2017 RESIDENTIAL The residential asset management portfolio includes 4,800 residential units across 10 completed Aldar developments. The residential portfolio includes a wide array of high-quality units ranging from studio apartments to 5-bed villas. This has allowed the portfolio to appeal to a wide spectrum of the market, with emphasis on high-quality developments with good amenities. All of the units are located within Abu Dhabi, with a concentration of units positioned between Reem Island and Khalifa City. Residential unit split Studio 7% 1 bed 30% 2 bed 32% 3 bed 21% 4 bed+ 10% 28 Aldar Annual Report 2017

31 Strategic Report The residential portfolio has experienced significant growth over the last five years with the completion and subsequent handover of two major residential developments in 2014, Al Rayyana and The Gate Towers, each adding approximately 1,500 units to the portfolio. As at 31 December 2017, two projects under development will support additional growth in the portfolio. The Bridges and Water s Edge will expand Aldar s offering to provide a high quality mid-income positioned rental product with the latter also bringing capacity onto Yas Island. The residential strategy has focused on diversifying the tenant mix between individuals, which can be renewed annually and multi-year bulk tenancy agreements with corporates. As at 31 December 2017, bulk deals represented 36% of the units in the portfolio. Occupancy performance of the residential portfolio has been supported by continued demand for high-quality, residential properties that also provide a diverse offering of amenities. As at 31 December 2017, residential occupancy across the portfolio stood at 91%. Residential location split Residential unit evolution Residential lease split Al Raha Beach 5% Reem Island 39% Abu Dhabi Island 8% Abu Dhabi mainland 45% Al Ain 3% ,800 1,800 3,000 4,800 4,800 4, Residential portfolio Individual 64% Bulk 36% Additions Under development Aldar Annual Report

32 Operational Review continued RETAIL Our retail portfolio includes 470,000 sqm gross leasable area (GLA) across 25 assets within the Abu Dhabi metropolitan area and Al Ain. The retail strategy is split between community retail, which offers residents key amenities such as supermarkets and restaurants, as well as destination retail, which provides a much broader retail and entertainment offering. The community retail predominantly includes on-site convenience retail, based around many of Aldar s residential communities. Destination retail includes Aldar s two largest retail assets, Yas Mall and Al Jimi Mall. Other retail incorporates our big box retail on Yas Mall, which includes an IKEA and an Ace Hardware. The main addition to our retail portfolio in recent years was the handover of Yas Mall in As at 31 December 2017, the AED 400 million 30,000 sqm GLA expansion of Al Jimi Mall was still under construction, with completion set for H YAS MALL Yas Mall is the flagship asset in the retail and asset management portfolio. Yas Mall is located in the centre of Yas Island, within close proximity of the key leisure and entertainment offerings on the island. Opened in November 2014, Yas Mall lifted the Abu Dhabi retail offering with the first true super-regional mall experience in the Emirate. The mall has now completed three years of trading and occupancy stands at 94% as at 31 December Yas Mall retail split Anchors 46% Major space users 22% Large space users 8% Line shops 19% F & B 5% Retail type split Retail location split Retail GLA evolution ( 000 sqm) Yas Mall remaining lease length Destination 56% Community 27% Other 17% Yas Island 55% Reem Island 7% Al Raha Beach 4% Abu Dhabi 14% Al Ain 20% Retail portfolio 0 3 years 48% 3 5 years 13% 5+ years 39% Additions Under development 30 Aldar Annual Report 2017

33 Strategic Report OFFICE Our office portfolio includes over 240,000 sqm GLA, predominantly focused around Grade A office building space. The office portfolio is predominantly leased on a long-term basis to government and government related entities (GRE), which is representative of the Abu Dhabi commercial office tenant market. Leases to corporate tenants represent approximately 20% of the total GLA. The commercial strategy is to maintain high-quality commercial space and build long-term relationships with tenants. As at 31 December 2017, the average tenure of remaining leases was approximately 5 years. The majority of our commercial portfolio is high-quality Grade A and Grade B space. The office portfolio is predominantly based on Abu Dhabi Island. The acquisition of 39,000 sqm GLA International Tower was also completed in December Office occupancy stood at 88% as at 31 December 2017, including the recently acquired International Tower (68% occupancy as at 31 December 2017). Commercial tenant split 1 Office type Commercial GLA evolution Government/GRE 75% Corporate 17% Vacant 8% Grade A 65% Grade B/Other 35% Office portfolio Acquired 1 Excluding International Tower Office remaining lease split Office location split 0 3 years 39% Al Raha Beach 20% 3 5 years 37% Abu Dhabi Island 75% 5+ years 24% Shams Abu Dhabi 5% Aldar Annual Report

34 Operational Review continued HOTELS Our hotel portfolio includes 2,536 keys across nine hotels and serviced apartments across the Emirate of Abu Dhabi. The hotel portfolio includes a broad range of product offerings including 5-star, 4-star, 3-star hotel rooms and serviced apartments. The 4-star hotels constitute almost half of the portfolio by number of keys. With 90% of our hotel keys located on Yas Island, our core strategy remains focused on continued activation of the island through major events and promotion, working alongside the relevant bodies to achieve this strategy. Aldar does not operate the hotels, instead employing reputable international operators through hotel management agreements (HMA) to manage the day-to-day operation of the assets. These HMAs include certain performance metrics to align the interests of the operators to those of the asset owners to encourage performance. Hotel occupancy for 2017 full year was 78% (2016: 77%), ahead of the wider Abu Dhabi market of 72%. Hotel occupancy 78% (2016:77%) Hotels type split by keys Hotels location split by keys 5 star 20% 4 star 49% 3 star 18% Serviced 13% Yas Island 90% Abu Dhabi Island 5% Other 5% 32 Aldar Annual Report 2017

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36 Financial Review STRONG FINANCIAL PERFORMANCE 2017 has been another successful year for Aldar. Whilst 2017 revenue and gross profit numbers appear similar to 2016, this doesn t tell the full story results were supported by strong underlying performance driven by growth within our development and our resilient asset management businesses. A BILLION-DIRHAM GROSS PROFIT DEVELOPMENT FRANCHISE Our development business recognised sales of AED 3.5 billion during 2017, supported by the launch of two developments The Bridges and Water s Edge that catered to the underserved mid-market residential segment of Abu Dhabi real estate, demonstrating the flexibility of our land bank to activate new markets through the cycle. As at 31 December 2017, sales across our projects under development exceeded AED 10 billion, with a revenue backlog of AED 4 billion to be recognised over the coming years. During 2017, the development business was spurred by progress across our projects under development that resulted in significant revenue and gross profit growth, as we continued to ramp up construction activities across our projects having reached a base producing well over AED 1 billion gross profit per year on a run-rate basis. We are very pleased to see the progress that we have made having reopened the Abu Dhabi off-plan market in 2014 and building the business to where it is today, firmly demonstrating the sustained value of the franchise. 34 Aldar Annual Report 2017

37 Strategic Report We are very pleased to see the progress that we have made having reopened the Abu Dhabi off-plan market in 2014 and building the business to where it is today, firmly demonstrating the sustained value of the franchise. RESILIENT ASSET MANAGEMENT PERFORMANCE Our Asset Management business also had a solid year, achieving net operating income guidance of AED 1.6 billion for the year, supported by the defensive qualities built into the portfolio that mitigate downside risk and the successful acquisition of the International Tower office building in the fourth quarter. This Asset Management business today features AED 18 billion in high-quality real estate assets across residential, retail, office and hotels that act as a proxy for real estate in Abu Dhabi, one of the few remaining AA rated economies left in the world. We remain focused on Abu Dhabi and see further growth in this business, supported by a recently increased investment plan of AED 5 billion to develop new assets that will complement our existing portfolio, as well as acquiring value accretive real estate assets in the market that will support near-term growth. FURTHER FORMALISATION OF CORPORATE STRUCTURE As we have communicated over the past several years, Aldar s business model revolves around two unique businesses, Development Management and Asset Management. During the year we provided further clarity for shareholders to understand how capital will cycle from the asset level through to shareholders. We introduced a separate financial debt policy and dividend pay-out range for the Development Management business. These policy changes will support optimisation of funding across the Group and clarify our commitment to reward shareholders for our performance. FINANCIAL FLEXIBILITY Our financial position as at 31 December 2017 remains strong. The Group continues to generate strong net cash inflows, with AED 1.9 billion cash generated from operating activities during the year. Total cash for the Group increased by AED 0.2 billion over the course of 2017 to AED 6.9 billion, despite the acquisition of International Tower for AED 658 million and an increased dividend last year. Gross debt stood at AED 6.0 billion as at 31 December 2017, versus AED 5.6 billion as at 31 December A conservative development debt policy to maintain up to 25% loan-to-value (LTV) construction costs incurred and land cost, was introduced to support funding requirements within the development business. As at 31 December 2017, AED 0.1 billion was held against the development business, representing a 4% LTV. The Asset Management debt policy remains unchanged, whereby gross debt should be 35-40% of the value of our investment properties and operating businesses. As at 31 December 2017, AED 5.9 billion was held against the Asset Management business, representing a 33% LTV. COMMITMENT TO SHAREHOLDER RETURNS The dividend policy was updated in 2017 to provide greater clarity and transparency, as well as underscoring commitment to shareholder returns. The dividend policy is based on a 65-80% pay-out on distributable free cash flow from asset management business plus a 20-40% pay-out on realised cash profit from development business upon handover of developments. Based on this dividend policy, 12 fils per share dividend is proposed for 2017, a 9% increase on Aldar Annual Report

38 Financial Review continued The financial information contained in this review is based on the consolidated financial statements. FULL YEAR HIGHLIGHTS Underlying gross profit rose 34% to AED 2.7 billion, excluding exceptional one-off items in 2016, driven by progress on property development projects Net profit of AED 2.0 billion, impacted by a 3% fair value adjustment to our asset management portfolio 2017 development sales of AED 3.5 billion, driven by the two development launches during 2017, The Bridges and Water s Edge Asset Management business achieved AED 1.6 billion net operating income guidance Dividend policy updated to provide further clarification on development dividend component Gross debt stood at AED 6.0 billion as at 31 December 2017 Proposed cash dividend for 2017 of 12 fils per share, a 9% increase over 2016 (11 fils per share) SEGMENTAL ANALYSIS DEVELOPMENT MANAGEMENT Underlying property development revenue and gross profit, excluding one-off land sales in 2016, were up 103% and 136% respectively, driven by progress on development projects under construction. Development Management recognised revenue and gross profit growth during 2017, predominantly driven by a final development fee distribution on a completed managed project. Other operational achievements for the year were as follows: Development sales AED 3.5 billion development sales value 1,900 units launched for sale in 2017, across The Bridges and Water s Edge AED 3 billion construction contract awards during 2017, across Yas Acres, Mayan and The Bridges 83% sold across all Aldar units launched to date Development management Key projects remain on track West Yas to commence handover from Q ASSET MANAGEMENT Revenues from our Asset Management portfolio, which includes investment properties and hotels decreased by 6% in 2017 to AED 2.2 billion predominantly due to a switch to a landlord based business model for operative villages, which are now part of investment properties and a drop in hospitality revenues. Full-year gross profit from Asset Management revenues fell 2% to AED 1.5 billion in 2017, underpinned by resilient occupancy across investment properties over the course of the year. Following the independent fair valuation of its investment properties, the Company recorded AED 495 million of net fair value losses during Q which resulted mainly from a softer outlook on market prices, partly offset by yield compression. Other operational achievements for the year were as follows: Retail Yas Mall trading occupancy stood at 94% as at 31 December 2017 Residential Residential portfolio was 91% leased as at 31 December 2017 Office Completion of International Tower acquisition in December 2017 Office occupancy is 88% as at 31 December 2017 Hotels 2017 full year hotel portfolio occupancy was 78%, ahead of the wider Abu Dhabi market, which recorded a full year occupancy of 72% CORPORATE Selling, general and administrative expenses (excluding depreciation, impairments and amortisation) was AED 407 million during 2017, in line with Other Income which mainly represents income recognised upon handover of infrastructure assets to the Government of Abu Dhabi was AED 636 million for 2017 (2016: AED 954 million). Going forward, Other Income is set to further decline as we finalise handovers of infrastructure assets around our key destinations to the Government of Abu Dhabi. Greg Fewer Chief Financial Officer 14 February Aldar Annual Report 2017

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40 Board of Directors BOARD OF DIRECTORS HIS EXCELLENCY MR. MOHAMED KHALIFA AL MUBARAK CHAIRMAN HE Al Mubarak is Chairman of Aldar Properties and, prior to that, he was Chief Executive Officer, Deputy Chief Executive and Chief Portfolio Management Officer at Aldar. HE Al Mubarak has been integral to the development of Aldar s operational businesses as well as that of the fastgrowing Sales & Leasing, Property & Asset Management and Facilities Management units within the organisation. Prior to joining Aldar, he worked with the corporate and investment bank Barclays Capital in London, focusing on investment and finance in the MENA region. HE Al Mubarak is the Chairman of the Abu Dhabi Tourism & Culture Authority as well as the Chairman of Farah Leisure (operator of Ferrari World Abu Dhabi and Yas Waterworld), Aldar Academies and Image Nation. HE Al Mubarak is a graduate of Northeastern University, USA, with a double major in Economics and Political Science. HIS EXCELLENCY MR. ABUBAKER SEDDIQ AL KHOORI FIRST DEPUTY CHAIRMAN HE Al Khoori is the First Deputy Chairman of Aldar Properties. Previously, he was the Managing Director of Sorouh Real Estate, and worked as the Assistant Director of the Abu Dhabi Investment Authority. HE Al Khoori has over 21 years of experience in the fields of finance and international investment and over nine years in the real estate sector. He is currently the Vice Chairman of both Waha Capital PJSC and Senaat. He is also a board member of Abu Dhabi Ports Company (ADPC) and Abu Dhabi Airports Company (ADAC). HE Al Khoori holds a degree in Finance from Linfield College in McMinnville, Oregon, USA, and is a certified Chartered Financial Analyst (CFA) and a member of AIMR. MR. WALEED AHMED ALMOKARRAB AL MUHAIRI SECOND DEPUTY CHAIRMAN Mr. Waleed Al Muhairi is Mubadala s Deputy Group CEO and he is also Chief Executive Officer, Emerging Sectors of Mubadala. Mr. Al Muhairi is currently the Chairman of the Board of Directors at National Central Cooling Company PJSC (Tabreed) & Cleveland Clinic Abu Dhabi and a Member of the Board of Directors at Abu Dhabi Future Energy Company PJSC (Masdar), Mubadala Petroleum LLC & Tamouh Investments. As Mubadala s Deputy Group CEO, Mr. Al Muhairi oversees the company s broad investment portfolio and is responsible for its strategic, operational and business development activities. Mr. Al Muhairi is also Chief Executive Officer, Emerging Sectors, with oversight of Mubadala s healthcare, real estate and infrastructure, and capital investment portfolios, as well as the Enterprise Technology & Services unit. Mr. Al Muhairi holds Masters from Harvard University in Public Policy with a concentration in Business and Government and Bachelors of Science in Foreign Service from Georgetown University, Washington D.C., USA. 38 Aldar Annual Report 2017

41 Strategic Report MR. HAMAD AL AMERI DIRECTOR Mr. Al Ameri, brings to Aldar significant experience from the construction industry as well as in the fields of business growth and management. Mr. Al Ameri joined the Aldar Properties Board of Directors in November 2015 adding to a portfolio of appointments which among others includes his role as Vice Chairman of the Board and Managing Director of Trojan Holding. In this role he leads the growth strategy of both the holding company and its subsidiaries, which has resulted in the Company expanding from a small base to a team of over 21,000 employees. In addition to his role at Aldar and Trojan Holding, Mr. Al Ameri holds a number of Board positions and holds a degree in Civil Engineering as well as a Masters in Business Administration. MR. MANSOUR MOHAMED AL MULLA DIRECTOR Mr. Al Mulla is the Head of Finance for the Energy Platform in Mubadala Development Company. His prime responsibility, amongst others, is to advise, appraise and recommend to the Platform CEO on all financial matters pertaining to platform assets, which include investments in Oil and Gas (through Mubadala Petroleum LLC) and renewables. Throughout his career with Mubadala, Mr. Al Mulla has played an instrumental role in negotiating and closing numerous award winning financing transactions. Additionally, Mr. Al Mulla has advised and supported a number of Mubadala related assets on raising standalone debt financing as well as other strategic initiatives. In addition to his duties, Mr. Al Mulla also serves as a board member of Waha Capital PJSC and Anglo Arabian Healthcare FZ LLC. Mr. Al Mulla holds a Bachelor s of Science in Business Administration (Information Systems) from Portland State University, Portland, Oregon, USA. MR. AHMED KHALIFA MOHAMED AL MEHAIRI DIRECTOR Mr. Al Mehairi, with more than 10 years of experience, is a senior investment professional at the Direct Investments Department of the Abu Dhabi Investment Council (ADIC). Prior to joining ADIC in 2008, he worked at the Far East Department at Abu Dhabi Investment Authority (ADIA). Mr. Al Mehairi is currently a Member of the Board of Directors at Etihad Airways, Abu Dhabi National Energy Company PJSC (Taqa), Massar Solutions PJSC and FOODCO Holding PJSC. Previously, he served as a Member of the Board of Directors at Sorouh Real Estate PJSC and Aseel Finance PJSC. Mr. Al Mehairi holds a Bachelor s of Commerce degree in Finance from The John Molson School of Business, Concordia University, Montreal, Canada. MR. ALI SAEED ABDULLA SULAYEM AL FALASI DIRECTOR Mr. Al Falasi has extensive experience in the real estate sector and has been Chief Executive Officer of Hydra Properties since He is also a member of the Board of Directors of Commercial Bank International PSC. Mr. Al Falasi holds a Master s of Business Administration from the University of Sharjah, a Bachelor s of Science BSc in Production & Operation Management from California State University and a Bachelor s of Arts in Accounting from United Arab Emirates University. MR. MOHAMED HAJI AL KHOORI DIRECTOR Mr. Al Khoori worked as a financial consultant and served as a senior executive within a number of organisations including until recently as Director General of the Khalifa Bin Zayed Al Nahyan Foundation as well as a number of important positions within the Public and Private Sector Court in Abu Dhabi. Mr. Al Khoori is also on the board of a range of institutions in the UAE, including the Zayed Higher Organisation for Humanitarian Care & Special Needs, International Capital Trading Company, Dalma Company, International Golden Group, Federal Electricity Authority and the Abu Dhabi Chess Club. Mr. Al Khoori holds a Bachelor s degree in Economics from the California State University in San Bernardino, USA. MR. MARTIN LEE EDELMAN DIRECTOR Mr. Edelman is Chairman of the Board of AGT International and is on the Board of Directors of Capital Trust, AMD, and Ashford Hospitality Trust. Mr. Edelman concentrates his practice on large complex international real estate developments, corporate mergers and acquisitions transactions. He is an advisor to Grove Real Estate Partners, The Related Companies and Mubadala, the strategic investment arm of the government of Abu Dhabi. He is also on the boards of the Jackie Robinson Foundation, The Intrepid Fallen Heroes Fund, the Fisher House Foundation and Tribeca Film Institute and Festival. Mr. Edelman holds a Bachelor Degree in Politics from Princeton University and in Law from Columbia University, USA. Aldar Annual Report

42 Executive Management Team MR. TALAL AL DHIYEBI CHIEF EXECUTIVE OFFICER AND ACTING CHIEF DEVELOPMENT OFFICER Mr. Al Dhiyebi is the Chief Executive Officer of Aldar Properties having previously held the position of Chief Development Officer, Executive Director of Asset Management since the merger with Sorouh in He held a number of senior positions at Aldar and currently serves on the boards of several companies including Abu Dhabi Motorsports Management, Al Jazira Capital, and Aldar Academies. Mr. Al Dhiyebi is a graduate of Electrical Engineering (Honours) from the University of Melbourne, Australia. MR. FAHAD AL KETBI DEPUTY CHIEF EXECUTIVE OFFICER Mr. Al Ketbi is Deputy Chief Executive Officer of Aldar Properties. Previously, Mr. Al Ketbi served as the Chief Operations Officer at Aldar Properties and Chief Commercial Officer at Sorouh Real Estate PJSC. He sits on the board of Pivot. Prior to joining Sorouh, Mr. Al Ketbi was a commissioned officer in the UAE Military Forces, rising to the position of Colonel and Director of the Corps of Engineers. Mr. Al Ketbi holds a Masters of Science from the National Defense University, Washington D.C., USA with a major in strategy and a Bachelor of Science in Civil Engineering from the University of Hartford, Connecticut, USA. MR. GREG FEWER CHIEF FINANCIAL OFFICER Mr. Fewer is the Chief Financial Officer of Aldar Properties. Mr. Fewer is responsible for the overall financial leadership of Aldar including the oversight of financial reporting, corporate strategy and innovation, employee experience, CSR, digital transformation and corporate finance. He sits on the boards of Aldar Academies, Khidmah and Abu Dhabi Finance. Prior to his roles at Aldar, Mr. Fewer was Deputy Head of Structured Finance & Capital Markets at Mubadala, where he was jointly responsible for Mubadala s overall debt raising activities and overseeing Mubadala s investment program in the commercial finance market. He holds a BComm (Hons) from the University of Manitoba and an MBA from London Business School, UK. MR. JASSEM SALEH BUSAIBE CHIEF INVESTMENT OFFICER Mr. Busaibe has over 15 years of experience in the fields of finance and investment, having held a number of high-profile roles at several private and public companies in Abu Dhabi and is now Aldar Properties Chief Investment Officer. He sits on the boards and is chairman of Khidmah and Pivot. He was most recently the CFO of SENAAT and prior to that served as CEO of Arady Properties, an investment company focused on the private equity and real estate sectors in the GCC, and was formerly Senior Vice President of Private Equities at Invest AD the Abu Dhabi Investment Company. Prior to that, he spent seven years at the Abu Dhabi Investment Authority (ADIA), where he worked as a Portfolio Manager focusing on European Equities. Mr. Busaibe is a CFA Charter holder and holds an MSc in Finance from London Business School, UK. 40 Aldar Annual Report 2017

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