Stock - Aldar
Aldar kept the offplan supply pipeline stoked right through 2022, with Saadiyat Island seeing many of these upscale launches. Image Credit: Bloomberg

Dubai: A solid fourth quarter performance did more than enough to deliver a record performance for Aldar Properties, with revenues for 2022 at Dh11.2 billion, up 31 per cent, and net profit surging 35 per cent to Dh3.1 billion. The numbers attest to significant demand for ready and offplan property in Abu Dhabi, and will also give impetus to Aldar in continuing with its expansion spending spree.

The developer, who last week confirmed an entry into Dubai through an alliance with Dubai Holding, spent Dh11.3 billion in acquisitions during 2022, including resorts, land and a mall in Ras Al Khaimah; super-premium office towers in Abu Dhabi’s Al Maryah Island; and ‘islands’ too.

Aldar has recommended a dividend of Dh0.16 per share, which would represent a total payout of Dh1.3 billion in 2022 (and Dh10 billion over the last decade).

“Aldar has entered a new phase of growth that has driven record financial results in 2022 and reinforced the company’s status as a major force in the regional real estate sector,” said Talal Al Dhiyebi, Group CEO. “Our prime investment property portfolio has proven resilient to global disruption and has experienced an increase in capital values, even at a time of rising interest rates and international market softness.

“Our development business attracted unprecedented demand from overseas buyers, and we have a strong pipeline of new developments, which will attract both local and international investment, including our first communities in Dubai.”

In Dubai, the plan is to build three communities initially, bringing in new concepts that can attract a wider or new buyers.

“Dubai had always been a target (market), and we been saying it was only a matter of time,” said Greg Fewer, who is stepping down as Aldar’s Chief Financial and Sustainability Officer. “The plan for Dubai is to deploy investments in a recurring asset portfolio, whether in logistics or commercial offices within the next 12-24 months.”

Aldar is putting up another Dh5 billion in equity capital to fund potential transactions. It has free cash of Dh6.5 billion and bank lines of another Dh4.5 billion – cash-wise, Aldar’s covered.

  1. Aldar's total UAE sales in 2022 was at a new high of Dh11 billion, up 52% yoy.
  2. The developer launched 9 residential projects, including Louvre Residences Abu Dhabi, Grove Views, Saadiyat Lagoons, Yas Golf Collection and Yas Park Gate.
  3. Sales to overseas property buyers closed 2022 at Dh1.8 billion, also a record.
  4. Gross profit margin for the year stood at 37%, up marginally yoy.

Egypt is delivering

Aldar's Egypt move is starting to yield results, with the developer SODIC contributing Dh1.4 billion to Aldar Development’s FY-22 revenue and with an EBITDA at Dh276 million. (It was last year that Aldar and Abu Dhabi's ADQ combined to take a near 90 per cent stake in SODIC, known for its upscale residential communities.)

SODIC’s 2022 sales came to Dh3.4 billion (21 billion Egyptian pounds), the highest-ever annual sales achieved by it. 

In early 2022, the company attracted Dh5.1 billion of long-term institutional capital from Apollo Global Management, setting the tone for the accelerated execution of Aldar’s transformational growth agenda with significant geographic and sector expansion across the platform over the year

- Mohamed Khalifa Al Mubarak, Chairman of Aldar Properties

More to follow...