Abu Dhabi-based developer, Aldar Properties, has reported a YoY increase of 22% in its Q1 net profit, with a record quarterly development sales of Dh4.5 billion. The strong performance was driven by increased demand from both international and resident expat buyers.
It’s development revenue backlog also hit an all-time high of Dh18.8 billion, providing 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, It 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 meters of land.
It 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 center. 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 CEO 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.”
“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,” he added.
Aldar’s success in Q1 2023 marks a promising start to the year, and its strategic initiatives and diverse investment portfolio are set to ensure continued growth and stability for the company in the coming months and years.
