Aldar Investment houses Aldar’s core asset management business, comprised of an AED 16 billion portfolio of prime real estate assets (across retail, residential and commercial segments) as well as three additional platforms: Aldar Education, a leading education group in Abu Dhabi, Aldar Estates, which consolidates Aldar’s property services platform, and Aldar Hospitality and Leisure, a portfolio of hotel and leisure assets anchored around Yas Island and Saadiyat Island.
- Aldar Investment demonstrated notable resilience amid challenging macro-economic conditions and lockdowns during the year, drawing on its key strengths: robust governance, active asset management by a highly professional team and a well-diversified portfolio of assets. Total net operating income for the business was AED 1.58 billion in FY 2020, a decline of just 7% year on year.
- FY 2020 revenue declined 15% to AED 3.43 billion partially due to reduced income from the retail and hospitality segments. Revenue was at AED 936 million in Q4 2020, when there was a significant increase in hotel occupancy and improvement in retail footfall and sales.
- Net operating income (NOI) for investment properties (retail, commercial and residential) held firm at AED 1.31 billion in FY 2020, only 5% decline on the previous year. The large portfolio of investment properties has displayed a high degree of stability despite the difficult operating environment due to Covid-19, with average occupancy across the diversified retail, commercial and residential assets standing at 88% at the end of 2020.
- Provis, the property management company which will be contributed to Aldar Estates as part of the new operating structure, and facilities management company Khidmah produced a combined gross profit of AED 50 million in FY 2020, a rise of 22% from the previous year.
- Aldar Education reported a 25% increase in gross profit to AED 122 million in FY 2020. The company is well established as the leading provider of private education in Abu Dhabi, with student enrolments increasing to 25,000 for the 2020-2021 academic year, from 16,000 in the previous year.
- Aldar Hospitality and Leisure, which was impacted significantly by global travel restrictions, recorded gross profit of AED 36 million in 2020, compared to AED 126 million in 2019. Income rebounded in Q4 2020 as Aldar-owned hotels partnered with the Department of Culture and Tourism to host several “event bubbles” on Yas Island including UFC and Formula 1. The ability to implement “safe zones” to allow major sporting events to proceed smoothly affirms Abu Dhabi’s position as one of the leading hubs for cultural and leisure tourism in the region.