Aldar Investment is comprised of four main segments representing over AED 20 billion of assets under management. Investment Properties, which houses Aldar’s core asset management business comprising 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 AED 2.1 billion 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 revenue grew 15% to AED 874.5 million in Q2 and net operating income (NOI) increased 23% to AED 375.1 million. This was supported by steady occupancy across Aldar’s diversified portfolio of investment properties and higher contributions from Provis and Aldar Education.
- The Investment Properties portfolio produced a 5% YoY increase in NOI to AED 308.6 million. Occupancy across the diversified properties was stable at 88%, supported by Aldar’s commitment to tenants and wider stakeholder engagement through premium offerings and service, and high-quality facilities maintenance.
o The Residential portfolio reported 0.4% YoY growth in NOI driven by income from new leases. Occupancy increased to 89% at the end of Q2, from 88% a year earlier.
o The Retail segment NOI increased 17.7% YoY mainly due to higher footfall and sales, reflecting improving consumer sentiment and purchasing power. Occupancy held firm at 86% and is expected to be supported by progression of handovers related to the Yas Mall redevelopment plan.
o The Commercial portfolio NOI declined 0.5% YoY, mainly due to lease maturities in the Operating Village segment. However, underlying office occupancy held firm at 90% supported by long-term, committed lease contracts from government related entities and corporate clients.
- The Hospitality and Leisure business is recovering with 79% growth in NOI driven by an increase in third-party asset management fees and prudent cost control measures across all hotels. The business is expected to experience a gradual improvement as global travel restrictions are eased and as the Meetings, Incentives, Conventions and Exhibitions (MICE) industry recovers.
- In Q2, Aldar Education reported a 208% YoY increase in NOI to AED 49.4 million, driven by a 16% increase in student numbers to 21,983. This was supported by significant cost savings from enhanced operational efficiencies.
- Within the Principal Investments business, Aldar’s property management company Provis has increased scale significantly through the acquisition of Asteco Property Management. Currently, Provis includes a portfolio of 50,000 residential units, 600,000 Gross Leasable Area (GLA) of retail assets, and 317,000 sqm of commercial assets under management. The company produced a significant growth in NOI to AED 16.9 million in Q2 driven by Asteco contribution, growth across several service lines and upturn in the market.