Aldar Properties’ Q2 2023 profit jumps 52% to Dhs1.3bn

Abu Dhabi’s Aldar Properties posted a 52 per cent increase in Q2 2023 net profit to $354m (Dhs1.3bn) from Dhs842m a year earlier, driven by record development sales and strong contributions from its recurring income portfolio.

The property giant’s development sales hit a record Dhs11.6bn in the three months to June 30, with 10 new project launches a year to date (YTD), surpassing the number of launches last year. Aldar, said in a bourse filing, that the record sales mark the highest-ever quarterly and half-yearly sales, thanks to the strong demand from a growing vein of overseas and resident expat buyers in the UAE.

Aldar Development’s revenues in the second quarter of 2023 surged by 12 per cent year-on-year (YoY) to Dhs2bn with earnings before interest, taxes, depreciation and amortisation (EBITDA) standing at Dhs715m, up 43 per cent YoY. The company attributed the revenue growth to construction progress and continued development backlog revenue recognition.

“Project management services backlog of Dhs61bn demonstrates the long-term and perpetual nature of the franchise with Dhs2.2bn in new projects awarded year-to-date (YTD),” Aldar said in a statement.

The company said total sales from its UAE operations reached Dhs6.4bn in Q2 2023, up 156 per cent YoY on high demand for existing inventory from the previous quarter’s launches as well as new Q2 launches including AlKaser, Reeman Living 2, and The Source 2.

profit driven by record development sales of AED 11.6 billion and strong contributions from recurring income portfolio.
Read more here https://t.co/qTwFeRSAD0 pic.twitter.com/76VM1B9Ony

— ALDAR (@AldarTweets) July 31, 2023

Aldar said properties worth Dhs3.3bn were sold to foreign investors and expat buyers, underscoring the emergence of Abu Dhabi as a premier investment and lifestyle destination. UAE operations’ revenue backlog increased by 65 per cent to Dhs19.9bn YTD with an average duration of 29 months.

Egypt’s SODIC contributed Dhs158m to the company’s Q2 2023 revenue with EBITDA standing at Dhs49m. SODIC’s Q2 2023 sales reached Dhs630m while H1 2023 sales totalled Dhs976m.

“As Aldar continues to pursue its transformational growth agenda, the company is today operating at a significantly elevated scale than just a couple of years ago,” said Talal Al Dhiyebi, group CEO of Aldar Properties.

“We achieved 10 new launches in the first half, more than in full-year 2022, and the investment business has seamlessly integrated new acquisitions, with the total value of owned recurring income asset portfolio increasing by almost a third over the last 12 months.”

Aldar’s investment strategy

Meanwhile, the Abu Dhabi-based property developer has been investing extensively across the Middle East’s crowded property market amid a spectacular recovery in the real estate sector. Aldar Investment, the developer’s investment unit, reported revenues of Dhs1.2bn in the first three months of the year, up 39 per cent YoY compared to last year.

The unit said its EBITDA reached slightly above Dhs1bn owing to contributions from acquisitions in 2022, strong performance across core real estate assets, and a notable rebound of the hospitality portfolio.

Aldar Investment’s hospitality and leisure business posted an EBITDA of Dhs66m in the quarter, a 184 per cent YoY increase while its half-year’s EBITDA jumped a three-fold YoY to Dhs181m. Similarly, the Abu Dhabi-based property giant’s education portfolio reported EBITDA Dhs52m in Q2 2023, driven by a 22 per cent YoY increase in enrolments to just under 33,000 students across 27 operated and managed schools.

The property firm said it will invest over Dhs350m in its education portfolio, in addition to the initial Dhs1bn commitment that was announced in 2022, as the property firm expands its reach into Dubai and Bahrain.

Read: Abu Dhabi real estate sector records over Dhs46.33bn in deals in H1 2023