Aldar Delivers 34% Increase In Underlying Gross Profit For 2017

AED 3.5 billion in development sales
AED 1.6 billion in net operating income from recurring revenue assets
2017 dividend of 12 fils per share declared, up 9% on 2016

Abu Dhabi, UAE, 15 February 2018: Aldar Properties PJSC ("the Company"), delivered a robust performance across its two business pillars during 2017.

FY 2017 Financial Highlights:Underlying gross profit growth of 34% to AED 2.7 billion driven by activity on projects under construction.Development sales hit AED 3.5 billion, ahead of guidance.Solid fourth quarter development sales of AED 1.2 billion driven by Water's Edge and West Yas.Underlying revenue was up 26% to AED 6.2 billion.Asset Management business achieved AED 1.6 billion net operating income guidance, supported by resilient performance and particularly strong fourth quarter.Net profit of AED 2.0 billion, impacted by a 3% value adjustment to our asset management portfolio.12 fils per share dividend for 2017 proposed, up 9% from 11 fils per share in 2016.

Commenting on the results, H.E. Mohamed Khalifa Al Mubarak, Chairman of Aldar Properties, said:

"Abu Dhabi has a clear and compelling vision, and as the Emirate's leading property developer, Aldar plays a key role in supporting its growth. Our unrelenting focus on creating attractive urban destinations for visitors and residents of Abu Dhabi drives our ambitious growth plans and sets a solid foundation for a successful year ahead."

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

"Our accomplishments during 2017 validate the success of our destination development strategy. Off-plan development sales hit AED 3.5 billion, demonstrating the rich demand for Aldar's properties while we expanded our portfolio of owned assets with the acquisition of International Tower, achieving our target of AED 1.6 billion in net operating income.

"We have bold plans for 2018 - exciting development launches and seeking opportunities to grow our portfolio in existing and new markets. With solid foundations, an extensive land bank, deep industry experience and an enviable portfolio of assets, Aldar is well positioned to achieve its strategy to deliver desirable destinations in Abu Dhabi in 2018 and beyond."

Dividend

Balancing our commitment to rewarding shareholders for their loyalty while maintaining a strong financial profile to facilitate growth, Aldar is proposing a 12 fils per share dividend to the Board for 2017. It is also providing further clarity on its progressive dividend policy, by extending the defined pay-out range policy to the Development Management business from 2017.

Operational Highlights - Development

Aldar launched two new residential developments – The Bridges and Water's Edge – during 2017, targeting a broader spectrum of the market. The response to these developments was exceptional with almost all units selling out in a matter of weeks following their respective launches in April and September. Aldar recorded AED 3.5 billion in development sales across 1,900 units during the year, both ahead of guidance.

Aside from off-plan launches, construction is ongoing at Aldar's other developments with AED 3 billion awarded in construction contracts for the year. The handover of Ansam to customers began in December 2017, marking the establishment of Yas Island's permanent residential population, creating communities with close proximity to Aldar's leisure assets on the island. Al Hadeel, located on Al Bandar, also started handover in December 2017. Nareel Island, West Yas and Al Merief are entering final stages of construction and are on track to be handed over during the first half of 2018.

Operational Highlights - Asset Management

Aldar's asset management portfolio of residential, retail, office and hospitality properties delivered a resilient performance during 2017 recording AED 1.6 billion net operating income, in line with FY 2016 and guidance. This was supported by a strong fourth quarter with high occupancy and rates at Aldar's portfolio at hotels, mainly driven by the busy calendar of events on Yas Island and the acquisition of International Tower.

Residential portfolio occupancy remained steady at 91% as at 31 December 2017. Occupancy at the expanded office portfolio and Yas Mall stood at 88% and 94% respectively. Full year hospitality portfolio recorded occupancy in the of 78%, outperforming the wider Abu Dhabi market of 72%.

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