TDIC on Track to Achieve Positive EBITDA Performance

Ahmed al Fahim, Executive Director of Sales and Leasing for TDIC stated: "In 2011, we accomplished phenomenal sales of TDIC's residential properties - AED 2.1 billion in sales were closed and these will be reflected in the company's financial statements as they are handed over to their owners in the coming year. A combination of the opening of revenue-generating assets and exceptional residential sales suggests that 2012's financial statements could show a positive EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) performance for the first time in the company's history." 2011's highlights include the openings of significant properties on TDIC's flagship development of Saadiyat. The St. Regis Saadiyat Island Resort - a 377-room, five-star hotel - began its soft opening stage in November 2011 and features a number of amenities and world-class restaurants. The Monte-Carlo Beach Club, Saadiyat, which opened in September 2011, is the first Monte-Carlo property outside of Monaco, and features a range of facilities that are complemented by outstanding service and a unique lifestyle experience.

Away from Saadiyat, in November 2011, TDIC delivered the Westin Abu Dhabi Golf Resort '&' Spa. The 172-room property is a welcome addition to Abu Dhabi's expanding tourism portfolio, and appeals to guests who are looking to do business in the emirate while capitalising on the hotel's leisure draw of being adjacent to the Abu Dhabi Golf Club and being in close proximity to Abu Dhabi International Airport. During 2011, TDIC began to deliver its residential communities on Saadiyat. These include Saadiyat Beach Villas, which offers three, four, five and six-bedroom villas and townhouses, as well as The Residences at The St. Regis Saadiyat Island Resort, which features four and five bedroom villas.

TDIC's stabilised assets, Qasr Al Sarab and Desert Islands Resort and Spa, have seen a significant uplift in business in 2011. The company's joint venture hospitality projects have experienced strong growth, while across TDIC's hospitality portfolio, revenue increased 11 per cent and occupancy increased 20 per cent when compared to 2010. In 2011, TDIC made significant progress towards improving its long term financial strength through a series of transactions. These transactions, coupled with strong financial discipline across the company helped TDIC end the year with over AED 2 billion in cash.

Earlier this year the Government of Abu Dhabi announced the confirmed opening dates for the museums of the Saadiyat Cultural District - the Louvre Abu Dhabi is set to open in 2015, Zayed National Museum in 2016 and Guggenheim Abu Dhabi 2017. 2011 published results show a net loss of 1.27 billion or 10 per cent lower when compared to 2010. The additional loss, driven predominantly by increased depreciation of newly completed assets, was lower than projected due to strong cost control across the company.