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Aldar Properties achieved a net profit of 836 million dirhams during the first quarter of 2023, a growth of 22% compared to the same period in 2022. It also recorded record sales that touched 4.5 billion dirhams. The company’s revenues in the first quarter of 2023 amounted to about 3.1 billion dirhams, an increase of 14% compared to the same period in 2022, and total profits reached 1.3 billion dirhams, a growth of 18%, and profits before interest, taxes, depreciation and amortization amounted to 955 million dirhams, a growth of 18%.
The growth across the Aldar platform is attributed to the revenues generated from the continued implementation and completion of the backlog of development projects, recording record quarterly sales, and high recurring income from investment properties, which reflects the booming real estate market in Abu Dhabi, in addition to the strong performance across Aldar’s diversified investment portfolio, driven by the strength of the rental market. and increased occupancy rates across the portfolio, and outperformed expectations with recent acquisitions.
Record sales
The company recorded a record level of development sales for the quarter of 4.5 billion dirhams, driven by increased demand from international buyers and residents of the United Arab Emirates. It achieved a strong list of acquisitions and development projects in preparation and implementation, and plans to inject large capital investments to enhance profit growth, expand the scope of business and increase portfolio diversification.
The accumulated revenues reached a record level for development projects at a value of 18.8 billion dirhams, which heralds the growth of revenues during the next two to three years. Which enhances its opportunities for growth.
strategic stock
Aldar Properties has succeeded in expanding its strategic stock of land through the acquisition of Al Fahad Island, which adds unique options of land overlooking the waterfront that can be developed in the future. It announced entering the Dubai real estate market through a joint venture with Dubai Holding to develop three residential complexes on a total land area of 3.5 million square meters, in addition to a joint venture partnership with Mubadala to develop commercial assets on Al Maryah Island to meet the high demand for high-quality office space. On the island with its growing importance as an international financial center in Abu Dhabi.
leading site
Aldar takes the lead in climate action by launching its comprehensive plan to achieve net-zero emissions, which outlines its commitment to decarbonize its business by 2050. In April, Moody’s confirmed the classification of Aldar Properties in the category Baa2, and the classification of Aldar Properties The investment is in the Baa1 category with a stable outlook for the two companies. These ratings reflect Aldar’s strong position and large portfolio of developable land, diversified recurring income portfolio, as well as Aldar’s strong liquidity and prudent approach to financial management.
Talal Al Dhiyebi, CEO of Aldar Properties Group, said: “Aldar maintained its positive growth momentum during the first quarter of 2023, as it recorded strong financial results supported by the positive economic scene in the United Arab Emirates. During the first quarter, we launched a number of new residential projects in Abu Dhabi, which received a strong response from local and international investors. The success of these launches paved the way for recording the highest quarterly sales in our history at a value of 4.5 billion dirhams, which contributed significantly to this exceptional performance of the house during the first three months of the year. The Aldar investment platform has grown at an accelerated pace, driven by achieving a high occupancy rate of 93% across various assets, strong rental returns, as well as strong contributions from new acquisitions across the portfolio, particularly the four commercial towers in Abu Dhabi Global Market.
Al Dhiyebi added, “The UAE continues to enhance its attractiveness as a preferred destination for business and modern lifestyles. We expect the strong performance of the real estate market to continue during 2023. In light of this, Aldar will continue to employ capital wisely across its various platforms to achieve the desired goals of its ambitious transformational growth program.” .
Aldar for development
This basic unit consists of three main divisions: the Real Estate Development and Sales Department, which is responsible for developing, marketing and selling Aldar’s diversified and strategic land stock, which is distributed in the most prominent investment areas across Abu Dhabi, Dubai and Ras Al Khaimah; the Project Management Services Division, which oversees development project management work, including government housing and infrastructure projects in the UAE; and the Egypt division, where this unit manages Aldar’s investments in the Sixth of October Development and Investment Company (SODIC).
Aldar Development Company’s revenues increased in the first quarter of 2023 by 8% year-on-year, to reach 1.9 billion dirhams, thanks to the continued collection of accumulated revenues, and the gross profit margin reached 40% in the first quarter of 2023, up by 37% from the first quarter of 2022. EBITDA increased by 20% year-on-year to AED 551 million.
Group sales jumped 105% to reach 4.5 billion dirhams, the highest quarterly sales ever recorded by the house, driven by the strong demand for its growing base of international buyers and residents of the UAE, and the accumulated revenue of the group increased to 18.8 billion dirhams, which heralds the growth of group revenues. In the UAE and Egypt during the next two to three years. The cumulative value of project management services at AED 62 billion illustrates the long-term nature of the franchise.
local operations
The total sales of the house in the UAE for the first quarter of 2023 reached a record high of 4.2 billion dirhams, an increase of 178% year-on-year.
