Aldar records Dh7.2b property sales in 2021

Aldar Properties on Wednesday announced strong financial results for 2021 and attributed the credit to its diversified business model.

In a statement, the Abu Dhabi-listed real estate giant said it recorded double-digit growth of 21 per cent in net profit which rose to Dh2.33 billion last year despite a challenging business environment across the globe. In addition to 21 per cent surge in its gross profit at Dh3.6 billion, the property group also reported two per cent year-on-year growth in revenues at Dh8.58 billion.

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,” he said.

“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,” Al Mubarak added.

Growth drivers

Aldar, which reported earnings per share of Dh0.295, up 20 per cent year-on-year basis, demonstrated a sustainable growth of shareholder value. It attributed Aldar’s robust financial to the strong performance of the Aldar Development business and growth in Aldar Investment’s recurring income portfolio.

Aldar Development also reported its highest-ever revenue backlog of Dh5.9 billion, supporting visibility and predictability of future revenue, along with the steady ramp-up of the fee-based business with projects backlog of Dh41.1 billion.

Moreover, Aldar Investment’s resilient performance was driven by strong rental rates and leasing activity across the portfolio, which ended the year at 93 per cent occupancy. This was primarily driven by Yas Mall, Abu Dhabi’s dominant super regional mall, which is benefitting from a successful redevelopment and repositioning plan, ending the year at 97 per cent occupancy.

Futureproofing business model

Talal Al Dhiyebi, group chief executive officer of Aldar Properties, said the company’s strong financial results demonstrate the resilience of its diversified business model.

“With the economic rebound gathering momentum throughout 2021, Aldar not only delivered an excellent set of financial results, but also invested in diversifying and futureproofing our business with strategic acquisitions, a strengthened development pipeline, and a first international market entry,” he said.

“Our development business’ annual sales record and strong revenue backlog coupled with the robust occupancy performance and leasing growth across Aldar Investment’s portfolio demonstrates the resilience of our diversified business and strong execution capabilities,” Al Dhiyebi added.

He 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.

“Looking ahead, we are ready to finalise landmark transactions, deploy capital efficiently in new opportunities, and execute on our transformational growth strategy across geographies, businesses and sectors,” he said.

Aldar Development

Aldar Development, Abu Dhabi’s leading property development company, reported sales of Dh1.1 billion in the fourth quarter, bringing the full year total sales to a record figure of Dh7.2 billion. Major project launches including multiple phases of Noya and Yas Acres, Al Gurm and the third phase of Saadiyat Reserve were the primary drivers behind this highest-ever sales figure.

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 strong demand throughout the year, representing 44 per cent of Aldar’s sales, up 32 per cent from the previous year. Yas Island remains 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 delivered strong results, with a continued ramp-up throughout the year. A total of Dh6.9 billion in capex was spent in 2021, resulting in a remaining backlog of projects worth Dh41.1 billion.

The last quarter of 2021 also saw an Aldar-led consortium acquire an 85.52 per cent stake in one of Egypt’s leading listed real estate development companies, Sixth of October Development and Investment Company (SODIC). This acquisition is part of Aldar’s overall expansion strategy into the Egyptian real estate market. The consortium will now pursue its objective to advance SODIC’s position as a leading national developer by scale and reputation, growing its portfolio of mixed-use residential communities in Greater Cairo, the North Coast and other major markets.

Aldar Investment

Aldar Investment, the largest diversified real estate asset management platform in the region, continued to demonstrate the resilience and defensiveness of its portfolio in 2021.

Yas Mall achieved 97 per cent occupancy at the end of December, up 17 per cent from a year earlier, highlighting successful leasing and the introduction of new and unique concepts and offerings as part of the successful mall repositioning.

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 (WAULT) increased by 38 per cent, demonstrating the long-term leases secured during the year.

• Strong balance sheet and undrawn facilities with liquidity of Dh9 billion providing significant dry powder for growth