Aldar Investment is comprised of four main segments including Investment Properties, which houses Aldar’s core asset management business, comprised of an AED 16.5 billion portfolio of prime real estate assets across retail, residential and commercial segments. Education, a leading education group in Abu Dhabi. Hospitality and Leisure, a portfolio of hotel and leisure assets anchored around Yas Island and Saadiyat Island. Principal Investments, which includes Provis, property management business, Khidmah, facilities management business and Pivot, construction services business.
- Aldar Investment’s revenue was AED 763 million in Q1 2021, 5% lower than in Q1 2020, when the impact of Covid-19 was negligible. The resilience of the commercial and residential portfolio, and the positive contribution from other parts of the business including Provis and Aldar Education, mitigated the impact the global pandemic had on tourism-oriented assets including retail, hospitality and leisure.
- Aldar Investment continued to demonstrate stability, operational resilience, and enhanced efficiency, recording NOI of AED 403 million, unchanged YoY.
- Within Investment Properties, the commercial and residential investment portfolio produced a 2% YoY increase in NOI to AED 224 million. Occupancy was firm at 91% and 90% respectively as at 31 March 2021, supported by Aldar’s commitment to tenants and wider stakeholder engagement through premium offerings and service, and high quality facilities maintenance.
- Despite the impact of Covid-19 on the retail portfolio, it witnessed a modest 4% YoY decline in NOI to AED 110 million. Occupancy rates across the retail portfolio stood at 83% as at 31 March 2021, in line with Q4 2020 while footfall and sales per square metre continue to improve, indicating a recovery in the retail segment.
- The AED 500 million redevelopment of Yas Mall is on track for delivery in phases over the next 12 to 18 months. The redevelopment plan is repurposing 40% gross leasable area to create high impact experiential retail and F&B spaces.
- Within Hospitality and Leisure, occupancy rates and revenue declined YoY due to global travel restrictions, however, the portfolio is benefiting from an increase in domestic tourism. Gross profit for the segment was flat YoY due to effective cost saving measures across all hotels. The business is expected to recover when global travel restrictions are eased, due to the UAE’s success in implementing highly effective testing and vaccination programmes.
- Education reported a 24% YoY increase in NOI to AED 39 million supported by a 14% increase in student numbers over the last academic school year and due to enhanced operational efficiencies.
- Within the Principal Investments business, Aldar’s property management company Provis produced a 2% YoY rise in NOI to AED 7.5 million in Q1 2021, while facilities management company Khidmah achieved 171% YoY growth in NOI to AED 8.1 million. With Provis’ recent acquisition of Asteco Property Management and its enhanced market leadership position, the business is expected to grow rapidly through new contracts in the coming months.