Abu Dhabi’s Aldar achieves annual property sales of Dhs7.2bn in 2021

Aldar Properties has announced its preliminary financial results for 2021, reporting revenues of Dhs8.58bn, up 2 per cent year-on-year (YoY), a gross profit of Dhs3.6bn, up 21 per cent YoY and a net profit of Dhs2.33bn, up 21 per cent YoY. The company also reported earnings per share of Dhs0.295, up 20 per cent YoY.

Mohamed Al Mubarak, chairman of Aldar Properties, said: “Aldar’s robust performance in 2021 represents a resilient business that is diversifying and transforming at pace, and highlights Abu Dhabi’s appeal as a premier global investment destination. Confidence in the emirate’s real estate market continues to strengthen as a result of the successful economic and social reforms implemented by the Abu Dhabi Government and was demonstrated by the sell-out launches that delivered Aldar’s highest-ever annual development sales.”

Aldar Development witnessed sales to the tune of Dhs1.1bn in Q4

Aldar Development reported sales of Dhs1.1bn in the fourth quarter, bringing the year’s total sales to Dhs7.2bn. Major project launches, including multiple phases of Noya and Yas Acres, Al Gurm and the third phase of Saadiyat Reserve, were the primary drivers powering this growth. Sales were supported by a broadening customer profile, with an increasing number of younger and female buyers purchasing properties in Abu Dhabi. The overseas and resident expat customer segment showed demand throughout the year, representing 44 per cent of Aldar’s sales, up 32 per cent from the previous year. Yas Island continues to remain a key priority, with developments on the island accounting for 62 per cent of the total value of sales throughout 2021.

Aldar Project’s fee-based business saw a continued ramp-up throughout the year. A total of Dhs6.9bn in capex was spent in 2021, resulting in a remaining backlog of projects worth Dh41.1bn.

The last quarter of 2021 also saw an Aldar-led consortium acquire an 85.52 per cent stake in Egypt-based real estate development company, Sixth of October Development and Investment Company (SODIC). This acquisition is part of the company’s overall expansion strategy into the Egyptian real estate market.  The consortium will continue to grow SODIC’s portfolio of mixed-use residential communities in Greater Cairo, the North Coast and other major markets.

Aldar Investment assets’ commercial and residential occupancy rates rose

Yas Mall achieved 97 per cent occupancy at the end of December, up 17 per cent from a year earlier, resulting from leasing and the introduction of new concepts and offerings as part of the mall’s repositioning plan. In addition, the community retail assets’ occupancy saw an increase of 17 per cent from last year to 95 per cent, mainly due to the ramp-up in Mamsha retail. The retail segment’s weighted average unexpired lease terms increased by 38 per cent, reflecting the long-term leases secured during the year.

The commercial portfolio’s performance was driven by leasing growth, ending the year at 93 per cent occupancy. The residential portfolio like-for-like occupancy was up 5 per cent year-on-year to 93 per cent.

Aldar Education saw an increase in enrollments reaching over 26,000 in total, the highest since its inception. In the first quarter of this year, the education business has also committed over Dhs1bn in investments to diversify its portfolio of schools and increase the number of students to more than 40,000 by the 2024-2025 academic year.

Provis, Aldar’s property management company, witnessed an increase in new contracts. Currently, Provis includes a portfolio of 55,000 residential units, 490,000 gross leasable area of retail assets, and 318,000 sqm of commercial assets under management.

Corporate updates

Multiple ESG, digital transformation and talent development initiatives were delivered in 2021.  The company’s ESG focus saw it secure the region’s first sustainability-linked loan, with the Dhs300m five-year facility linked to the company’s sustainability performance. Aldar also joined the United Nations Global Compact, adopted the Task Force on Climate Related Financial Disclosures framework and achieved the highest ESG rating among publicly listed real estate developers in the UAE.

In January this year, Aldar signed an agreement signed with Emirates Water and Electricity Company to adopt clean energy across all of Aldar’s owned and managed operating assets.

Read: UAE’s Aldar signs agreement with EWEC to promote clean energy adoption

The company also recently launched a portfolio-wide energy management project to reduce its energy consumption by approximately 20 per cent across 80 assets, including hotels, schools, commercial, leisure, retail and residential buildings.

Read: UAE’s Aldar to reduce carbon emissions by 80,000 tons annually across assets

As part of its digital transformation strategy, Aldar launched the second cycle of its Scale Up programme, a programme to support international start-ups with technologies that have the potential to shape the open Metaverse. The company also signed an agreement with Majid Al Futtaim to collaborate on the digitalisation of real estate transactions to make property purchases, sales and management a simple and convenient process for both UAE-based and overseas customers.

Additionally, Aldar has committed to hire and train 1,000 UAE nationals by 2026. The company was also named as a ‘top 10’ employer for the working environment it has created for women by ‘Great Place to Work’.

Talal Al Dhiyebi, group CEO of Aldar Properties, said: “The solid performance and corporate initiatives executed throughout 2021 have enabled us to carry forward our strong momentum into 2022. Already, we have completed an initial entry to Ras Al Khaimah, a substantial investment in our education business, and introduced a range of new sustainability initiatives that are positive for our business and the environment.”

Mubarak added: “With Aldar’s new operating model introduced during 2021, our future growth will be underpinned by geographic and business diversification, strategic investments and acquisitions in core sectors. Our focus on sustainability, digital transformation and talent will ensure continued growth and delivery of increased shareholder value.”