UAE master-developer Aldar's 2023 net profit zooms 40% to Dh4.4b; dividends to total Dh1.3b
Developer gains from new markets and sustained offplan demand in Abu Dhabi
Dubai: Aldar Properties delivered big-time for a third straight year, with 2023 net profit zooming 40 per cent to Dh4.4 billion. This came off revenues of Dh14.2 billion, itself going through a 26 per cent surge.
The Abu dhabi developer - which in recent times has expanded into Dubai, Ras Al Khaimah, Egypt, London and west Europe with projects and investments - has recommended a dividend of 17 fils per share, making for a total payout of Dh1.3 billion in 2023.
The 10-year dividend CAGR (compounded annual growth rate) of 9 per cent 'demonstrates Aldar’s solid track record of delivering sustainable shareholder value'.
In the final 3 months of 2023, Aldar's net profit hit Dh1.4 billion, which was also the period that saw the launch of its maiden Dubai project - the Haven - and announcement of its Nikki Beach venture in Ras Al Khaimah. And its development revenue backlog doubled to Dh36.8 billion, allowing for 'strong income visibility over the next 2-3 years'.
Coming up - two new communities in Dubai
A second residenitial community in Dubai will launch in the second quarter, and the third before the year-end.
More in London - and Saudi Arabia?
In London, there could be more asset buys using the platform provided by London Square, the developer it bought recently. Then there would be the next big entry point, which would be Saudi Arabia, with the possibility of investing in a mix of real estate classes. That makes sense 'given the breadth and scope of that market', according to Faisal Falaknaz, Group CFO.
The other group entity, Aldar Investments, currently has Dh37 billion of assets under management.
"Development sales in 2023 surged ten-fold compared to 2018, the gross asset value of our investment property portfolio grew by more than 50 per cent, and net profit more than doubled, reaching Dh4.4 billion," said Talal Al Dhiyebi, Group CEO of Aldar.
Recurring income is a focus too
"Aldar accelerated its transformative growth trajectory in 2023 to deliver remarkable earnings growth, with an intensive programme of new development launches and the enhanced performance of its recurring income portfolio," said Mohammed Khalifa Al Mubarak, Chairman. (Aldar has just announced its intention to spread Dh5 billion on building an additional portfolio of assets that can deliver on recurring income.)
The funds are very much there - the liquidity position at Dh2.9 billion in free cash and Dh7.5 billion in undrawn credit facilities is rated as 'strong'.
“This tremendous performance over a short timeframe has been witnessed across our core businesses, where we have delivered significant geographic and sector diversification and scale and enhanced long-term resilience," said Talal Al Dhiyebi, Group CEO.