Aldar Delivers 20% Increase in Gross Profit for Q2 2018

Announced and completed acquisition of AED 3.6 billion of assets from TDIC Revenue for Q2 2018 up 12% to AED 1.5 billion; up 2% to AED 3.0 billion for H1 2018Resilient performance across asset management portfolio

Abu Dhabi, UAE, 7 August 2018: Aldar Properties PJSC ("the Company") announced its financial results for the first half of 2018, delivering a resilient underlying performance across the business.

Financial HighlightsGross profit in Q2 2018 up 20% to AED 649 million (Q2 2017: AED 542 million)Gross profit in H1 2018 up 5% to AED 1.4 billion (H1 2017: AED 1.3 billion)Gross profit margin of 46% (H1 2017: 44%) supported by high margin development and land plot sales revenueQ2 2018 revenue up 12% to AED 1.5 billion (Q2 2017: AED 1.4 billion) supported by recent asset acquisitionH1 2018 revenue up 2% to AED 3.0 billion (H1 2017: AED 2.9 billion) driven by revenue recognition on developments under construction and recent asset acquisitionH1 2018 net profit of AED 1.1 billion (Q2 2018: AED 445 million)Balance sheet remains strong with gross debt well in line with established debt policy

Operational HighlightsCompletion of AED 3.6 billion TDIC asset acquisition in June 2018 within 60 days of being announcedAsset management Q2 2018 net operating income up 6% to AED 377 million, supported by recent asset additions (H1 2018: 773 million, up 2%)Completed handover of Ansam and Hadeel while handover commenced for Nareel Island, Al Merief and West Yas; Meera on track for handover in Q4 2018New AED 10 billion masterplan community launched at Alghadeer at CityScape Abu Dhabi in April77% of properties sold across entire development portfolio

Commenting on the results, Talal Al Dhiyebi, Chief Executive Officer of Aldar Properties, said:

"Aldar delivered a solid underlying performance for the first half of 2018 alongside a number of landmark announcements. In the development business, we launched a new masterplanned community Alghadeer and reinforced our reputation for delivery as we commenced handover of land plots and villas at Nareel Island, Al Merief and West Yas.

"We have cemented our position as Abu Dhabi's leading real estate investment company by completing one of the country's largest ever real estate acquisitions. The transaction, completed in just 60 days after being announced, adds AED 3.6 billion of strategic operating and development assets to our existing portfolio, which continues to deliver a resilient and consistent performance, positioning us well for future growth."

Development Overview

Development sales for the first half of the year were AED 1.1 billion (Q2 2018: 372 million), driven by sales of developments under construction, and two newly launched developments that build on Aldar's destination strategy. Alghadeer, a new AED 10 billion, 14,408 unit masterplan that sits within Aldar's Seih Al Sdeirah landbank on the border between Abu Dhabi and Dubai was launched at Cityscape Abu Dhabi in April 2018. Reflection, launched in March 2018, is a boutique residential development on Reem Island expanding Aldar's portfolio of mid-income developments in a city location.

Handover completed at Ansam and Hadeel, and commenced on West Yas (Aldar's first villa community on Yas Island), Al Merief (a master planned community in Khalifa City) and Nareel Island (an exclusive master planned community near Al Bateen). All other developments under construction are progressing well, with Meera, located on Reem Island, on track for handover in the last quarter of 2018.

In May 2018, Aldar announced the acquisition of a selection of assets from Tourism Development & Investment Company (TDIC). The assets purchased included residential projects on Saadiyat Island at reasonably advanced stages of construction. These high-quality projects expand Aldar's pipeline of existing projects under development and contribute immediate revenue as construction progresses.

Asset Management Overview

Aldar's asset management portfolio of residential, retail, office and hospitality properties delivered another resilient performance, with a 6% increase in net operating income to AED 377 million during Q2 2018, compared with AED 357 million in Q2 2017.

Occupancy remains healthy across the portfolio. Residential occupancy as at 30 June 2018, stood at 91%, while occupancy in the commercial portfolio was 91% and Yas Mall was steady at 89%. The hospitality portfolio recorded occupancy of 74% during the first six months of 2018.

Aldar's acquisition of assets from TDIC included a portfolio of operating assets, predominantly comprising residential, hospitality and leisure and district cooling. The transaction was completed in the second quarter within 60 days of being announced. These assets are now firmly integrated into Aldar's portfolio and will provide a more meaningful contribution during the second half of the year and beyond.

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