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Aldar Properties reports 26.5% Q1 profit jump

The Abu Dhabi-listed property giant earned Dh688 million ($187 million) net profit during the the quarter January-March quarter

Aldar Properties on Wednesday reported a 26.5 per cent increase in first-quarter profit driven by record quarterly sales and the inclusion of the financial results of Egypt developer Sodic, in which it co-owns a majority share.

The Abu Dhabi-listed property giant earned Dh688 million ($187 million) net profit during the the quarter January-March quarter, up from Dh544 million a year earlier, the company said. Revenue was up 31.5 per cent to Dh2.68 billion as the emirate’s real estate market sustained an upward momentum.

Gross profit also surged 44 per cent to Dh1.12 billion while earnings before interest, taxes, depreciation, and amortisation climbed 22.5 per cent to Dh806 million during the first quarter of 2022. The company enjoys strong liquidity position with Dh5.6 billion of free cash and Dh4.9 billion of committed undrawn facilities.

“During the first quarter, Aldar not only delivered a strong financial performance, but we also diversified our sources of funding and scaled up our operational capabilities in preparation for further growth opportunities,” said Talal Al Dhiyebi, group chief executive officer of Aldar Properties.

“We attracted a major investment from Apollo Global Management, which is driving the accelerated expansion and diversification of our investment property business. We also entered the high potential market of Ras Al Khaimah through two acquisitions in retail and hospitality, further increasing our geographic footprint, having entered the Egypt market at the end of last year,” Al Dhiyebi said.

Robust deal pipeline

In the coming months, Al Dhiyebi said Aldar will capitalise on a robust deal pipeline to further broaden our asset base.

“With demand for quality Abu Dhabi property remaining strong among investors and end-users, we will also ramp up development activity and new project launches, particularly on the expanded strategic land bank on Saadiyat Island,” he said.

The company has expanded its strategic land bank for development with a 6.2 million square metre plot acquired on Saadiyat Island during the second quarter. Its  development focus will remain on Saadiyat Island with the launch of Louvre Abu Dhabi Residences at Saadiyat Grove, attracting significant interest from international buyers.

“As we enter an exciting phase of growth, we continue to invest in talent and innovation to ensure efficient delivery of our ambitious strategy, while making strong progress on our ESG framework. By taking concrete steps on energy efficiency and carbon reduction, we aim to be a sustainability leader in the UAE in support of an inclusive, net-zero economy,” Al Dhiyebi said.

— muzaffarrizvi@khaleejtimes.com