Record development sales and recurring income portfolio delivers 21% increase in revenue to $870 million
Driven by record sales and strong contributions from its recurring income portfolio, Aldar Properties reported a 52 percent increase in net profit to AED1.3 billion ($350 million) in the second quarter of 2023.
Revenues increased nearly 21 percent on an annual basis to about AED3.2 billion ($870 million).
Total net profit for the first half of 2023 was AED2.1 billion ($570 million), an increase of 38 percent compared to the same period last year. Revenues achieved for the first half was AED6.3 billion ($1.72 billion), an increase of about 18 percent.
Mohamed Khalifa Al Mubarak (below), Chairman of Aldar Properties, commented: “Aldar continues to build on its formidable track record, capitalising on significant opportunities to deliver sustainable value to all our stakeholders.”
Aldar’s record sales and strong growth
Aldar reported a record development sales of AED11.6 billion ($3.16 billion) with 10 new project launches year-to-date. The company recorded strong growth in development revenue backlog at AED24.4 billion ($6.64 billion), driven by robust market demand providing revenue visibility over the coming four years.
A sustained increase in demand from both overseas and resident expat buyers underscores the continued appeal of Aldar’s offering and Abu Dhabi’s status as a premier investment and lifestyle destination.
The quarterly report outlined a solid organic growth across the recurring income portfolio, driven by increased leasing activity, higher occupancy, and rental income. Also, acquisitions made in 2022 served as drivers for accelerated growth, yielding strong returns and positively contributing to the bottom line.
Talal Al Dhiyebi (below), Group Chief Executive Officer of Aldar Properties, added: “We look forward to launching our development franchise into Dubai and Ras Al Khaimah in the coming months, and deploying further capital to diversify our investment property platform.”
Notable transactions during the first half of 2023 include the acquisitions of Al Fahid Island, as well as the joint venture partnerships with Dubai Holding and Mubadala. Transactions announced in Q3 2023 include an AED350 million ($95.3 million) investment to establish Cranleigh Bahrain and acquire two additional schools, Kent College Dubai and Virginia International Private School, as well as Aldar Estates’ strategic merger with Eltizam Asset Management Group.
In July, Aldar partnered with Abu Dhabi Housing Authority to develop Balghaiylam, a sustainable residential neighbourhood in the North Yas area valued at AED8 billion ($2.18 billion). The project is scheduled to be completed by 2026 and will offer 1,743 homes for UAE nationals.
The company also reported a healthy liquidity position with AED4.5 billion ($1.23 billion) of free cash and AED5.9 billion ($1.61 billion) of committed undrawn facilities.
Article Source: www.arabianbusiness.com