Report
Jaap Meijer
EUR 7.30 For Business Accounts Only

Aldar Properties: 74% of NAV via

The Abu Dhabi property market is softening, with residential and hotel rents down by 10% in 2016, while office rents are at 8-yr lows. This can compromise Aldar’s NOI growth targets in the short-term, but does little to erode valuation

 But Aldar continues to guide for NOI growth to AED 2.2bn in FY 20e, of which we think AED 1.9bn is achievable from escalations in existing rental contracts. We see AED 2.4/share of value out of Aldar’s recurring income portfolio, which single-handedly accounts for 90% of CMP

ï‚· Aldar will continue to focus on the undersupplied affordable property segment, by developing and handing over 1.5k resi units/annum. Land bank can support at least 10 years of sales. Reiterate Buy and tweak TP to AED 3.4

Underlying
Aldar Properties

Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

Analysts
Jaap Meijer

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