Offplan launches drive 88% rise in Q1 net profit for Aldar
Abu Dhabi developer makes strong start to 2024 with Dh1.6b in Q1 net profit
Dubai: The Abu Dhabi master-developer Aldar has scored a Dh1.6 billion net profit (after tax) for the first three months of 2024, which works out to be an 88 per cent increase over its 2023 figures. These came from Dh5.6 billion in revenues, which is an 83 per cent spike year-on-year, and EBITDA of Dh1.8 billion, which is 90 per cent higher.
Tax calculations are already starting to show up in financials put out by UAE's publicly listed companies, with the introduction of the 9 per cent corporate tax regime.
Clearly, the Aldar numbers are getting a boost from its launch of a residential community in Dubai, its first in the emirate, and from Ras Al Khaimah, on top of returns from its stream of offplan launches in Abu Dhabi. Shortly, Aldar should be launching its second Dubai project.
“We look to further growth this year through our strong development pipeline and new opportunities to expand our recurring income portfolio,” said Talal Al Dhiyebi, Group CEO.
The Aldar development backlog now weighs in at Dh38 billion plus.
Our investment portfolio continues to show solid organic growth on the back of a strong macro-economic backdrop, along with our acquisitions continuing to surpass our initial expectations.
Dh137m
New luxury launch on Al Fahid Island
Aldar’s UAE sales came to Dh6.1 billion from a 46 per cent year-on-year increase. In the first quarter, it had three launches in Abu Dhabi and in the second half of this year, there will be a new luxury beachfront development on Al Fahid island. (The Al Fahid is being marked as the next big 'island' destination in Abu Dhabi.)
Aldar's second Dubai project is being readied for a May launch.
“Aldar has developed a unique business model that has rapidly increased the company’s scale,” said Mohammed Khalifa Al Mubarak, Chairman, in a statement.
“We have achieved a strong balance between recurring income and development sales, and continue to recycle capital effectively into new growth opportunities.”
London investment
Aldar had in December last bought UK developer London Square, which contributed Dh223 million as revenue in Q1-2024 and Dh101 million in sales. London Square's 'revenue backlog was Dh1.59 billion (343 million pounds) as at the end of March, with an average duration of 23 months, providing strong earnings visibility on revenue over the next 2 years," said the Aldar statement.
We will continue to be very focused on what we have on our plate.
According to Faisal Falaknaz, CFO at Aldar, the near-term priorities would be:
- Accelerate development activities in Abu Dhabi, Dubai, Ras Al Khaimah, Egypt and the UK. "We will continue to be very focused on what we have on our plate," said Falaknaz.
- In Egypt, Aldar and its developer entity there, SODIC, will continue to focus on hedging against offplan sales and project costs alike. This is after the Egyptian currency devaluation was devalued in Q1-24.
- The Al Hamra Mall in Ras Al Khaimah will return to the market after an expansive makeover in H2-2024.
- Deploy between Dh4 billion to Dh5 million as capex over the course of the year.