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Abu Dhabi's Aldar posts 22% YoY increase in Q1 net profit

Quarterly development sales hit record Dh4.5 billion

Aldar Properties on Wednesday announced that it posted record quarterly development sales of Dh4.5 billion.

The Abu Dhabi developer has announced a series of achievements and strategic initiatives in its latest quarterly report. The company’s strong performance was driven by increased demand from both international and resident expat buyers.

Aldar’s development revenue backlog also hit an all-time high of Dh18.8 billion, which provides visibility over the next two to three years. The company’s expansion plans include the acquisition of Al Fahid Island, which will add a waterfront offering to its development pipeline. Additionally, Aldar has entered the Dubai real estate market through a joint venture with Dubai Holding, which will see the development of three new communities across 3.5 million square metres of land.

Aldar has also partnered with Mubadala to develop commercial assets in Al Maryah Island, tapping into the high demand for prime office spaces in Abu Dhabi’s growing international finance centre.

The company’s diversified investment portfolio also performed well, with a buoyant rental market and rising occupancy across the portfolio. Recent acquisitions have also performed above expectations, adding to the company’s solid financial position.

The company maintained a healthy liquidity position with Dh6.1 billion of free cash and Dh4.4 billion of committed undrawn facilities, enabling the company to capture attractive growth opportunities. Aldar has also reaffirmed its commitment to climate action, launching a comprehensive Net Zero Plan that outlines its pledge to decarbonize the business by 2050.

Moody’s has reaffirmed Aldar Properties’ and Aldar Investment Properties’ Baa2 and Baa1 ratings, respectively, with a stable outlook for both. Moody’s recognition reflects the company’s sizeable development landbank, diversified recurring income portfolio, strong liquidity position, and prudent approach to financial management.

Talal Al Dhiyebi, group chief executive officer of Aldar Properties, said: “Aldar has maintained positive momentum in the first quarter of 2023, reporting a strong set of results against the backdrop of positive economic fundamentals in the UAE. During Q1, we launched a variety of new residential concepts in Abu Dhabi that proved incredibly popular amongst investors locally and overseas. The success of these launches paved the way for our highest ever quarterly sales of Dh4.5 billion and played a large part in Aldar’s stellar performance during the first three months of the year. Aldar’s investment platform continued to grow at pace driven by tenant occupancy of 93 per cent across assets, strong rental returns, and positive contributions from new acquisitions within the portfolio, particularly the four office towers at ADGM.

“As the UAE continues to broaden its appeal as a business and lifestyle destination, we expect robust real estate market dynamics to sustain through 2023. Against this backdrop, Aldar will continue to deploy capital in a disciplined manner across its platforms to drive our transformational growth agenda.”