Aldar Properties net profit rises by 52% to AED 1.3 billion in Q2 2023

Aldar Properties

Aldar Properties reported a net profit of AED 1.3 billion in the second quarter of 2023 (Q2 2023), recording an increase of 52 percent, Driven by record development sales and strong contributions from its recurring income portfolio.

The value of revenues amounted to about AED 3.2 billion, representing an increase of 21 percent on an annual basis.

Aldar recorded AED 2.1 billion of net profits for the first half of 2023, an increase of 38 percent compared to the same period last year. It also achieved revenues of AED 6.3 billion dirhams, an increase of about 18 percent. Additionally, the value of total profits in the first half of 2023 (H1 2023) amounted to about AED 2.7 billion, of which 1.4 billion amounted to Aldar's total profits in Q2 2023.

Cross-platform growth gathers pace fueled by the execution of development revenue backlog, strong quarterly development sales, and growing contributions from the recurring income portfolio.

Aldar reported a record development sales of AED 11.6 billion with 10 new project launches year-to-date.

Sustained increase in demand from both overseas and resident expat buyers underscores the continued appeal of Aldar’s offering and Abu Dhabi’s status as a premier investment and lifestyle destination, the reported stated.

Aldar recorded strong growth in development revenue backlog at AED 24.4 billion, driven by robust market demand providing revenue visibility over the coming 4 years.

The quarterly report outlined a solid organic growth across the recurring income portfolio, driven by stronger operating performance, with increased leasing activity, higher occupancy, and rental income. Moreover, acquisitions made in 2022 served as drivers for accelerated growth, yielding strong returns and positively contributing to the bottom line.

The report also highlighted the ongoing execution of transformational growth strategy with a continued focus on disciplined capital deployment and geographic expansion outside of Abu Dhabi to unlock new opportunities.

Notable transactions during H1 2023 include the acquisitions of Al Fahid Island, as well as the joint venture partnerships with Dubai Holding and Mubadala. Transactions announced in Q3 2023 include an AED 350 million investment to establish Cranleigh Bahrain and acquire two additional schools, Kent College Dubai and Virginia International Private School, as well as Aldar Estates’ strategic merger with Eltizam Asset Management Group.

In July, Aldar partnered with Abu Dhabi Housing Authority to develop Balghaiylam, an integrated, sustainable residential neighborhood in the North Yas area valued at AED 8 billion. The project is scheduled to be completed by 2026 and will offer 1,743 homes for UAE Nationals. Additionally, AED 500 million investment earmarked to redefine the retail experience at Al Jimi Mall and Al Hamra Mall.

Aldar's quarterly report emphasised healthy liquidity position with AED 4.5 billion of free cash and AED 5.9 billion of committed undrawn facilities, providing the dry powder to pursue attractive growth opportunities.

Aldar reinforced its commitment to sustainability through the issuance of its inaugural US$ 500 million green sukuk, which forms part of a wider US$ 2 billion sukuk programme, the report added.

Mohamed Khalifa Al Mubarak, Chairman of Aldar Properties, expressed his pleasure at Aldar's strong financial performance. “Aldar continues to build on its formidable track record, capitalising on significant opportunities to deliver sustainable value to all our stakeholders,” he added.

Talal Al Dhiyebi, Group Chief Executive Officer of Aldar Properties, stated, “We look forward to launching our development franchise into Dubai and Ras Al Khaimah in the coming months, and deploying further capital to diversify our investment property platform”.