Abu Dhabi: ADX-listed master developer Aldar reported a 38 per cent increase in net profit at Dh2.1 billion in the first half of 2023, while revenue climbed 18 per cent to Dh6.3 billion during the same period.
The results were buoyed by the company’s record development sales of Dh11.6 billion with 10 new project launches year-to-date.
Mohamed Khalifa Al Mubarak, Chairman of Aldar Properties, said: “Solid consumer and business confidence is supporting domestic demand, which is translating into strong development sales and high occupancy across the company’s portfolio of prime assets.”
I am pleased to report that Aldar has produced a strong financial performance in the first half of 2023, driven by effective implementation of its ambitious growth strategy in the context of the UAE’s robust macro-economic fundamentals
“This is a direct result of the successful socio-economic reforms enacted by the UAE government, which have positioned the country as a premier lifestyle, investment and business destination. Aldar continues to build on its formidable track record, capitalising on significant opportunities to deliver sustainable value to all our stakeholders.”
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On a quarterly basis, net profit stood at Dh1.3 billion in Q2, a 52 per cent increase compared to the year-ago period, while revenue stood at Dh3.2 billion, up 21 per cent.
Among the group’s divisions, Aldar Development reported H1 revenue of Dh3.9 billion, up 10 per cent, with sales increasing 117 per cent year-on-year to Dh11.6 billion.
Aldar Investment saw its H1 revenue grow to Dh2.5 billion in the first half, a 42 per cent increase over the previous year. “We achieved 10 new launches in the first half, more than in full-year 2022, and the investment business has seamlessly integrated new acquisitions, with the total value of Aldar’s owned recurring income asset portfolio increasing by almost a third over the last 12 months," said Talal Al Dhiyebi, Group CEO of Aldar Properties.
He added, "Our operating model has proven highly effective at delivering accelerated growth. 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."
Aldar Development's total sales in the UAE during Q2 2023 reached a staggering Dh 6.4 billion, up 156 per cent YoY. And this was driven by high demand for existing inventory from Q1 launches and new Q2 launches including AlKaser, Reeman Living 2, and The Source 2, said the deveoper. And half year 2023 UAE sales increased 164 per cent YoY to Dh10.6 billion.
Sales from overseas and expat buyers reached a record Dh3.3 billion in Q2 2023 underscoring the emergence of Abu Dhabi as a premier investment and lifestyle destination. Meanwhile, H1 2023 sales from overseas and expat buyers totalled Dh5.2 billion, representing a four-fold increase compared to H1 2022.
The company (Aldar) is operating at a significantly elevated scale than just a couple of years ago.
Notable transactions during H1 include the acquisitions of Al Fahid Island, as well as the joint venture partnerships with Dubai Holding and Mubadala. In July, Aldar partnered with Abu Dhabi Housing Authority to develop Balghaiylam, an integrated, sustainable residential neighborhood in the North Yas area valued at Dh8 billion.
The project is scheduled to be completed by 2026 and will offer 1,743 homes for UAE Nationals. The company also earmarked a Dh500 million investment to redefine the retail experience at Al Jimi Mall and Al Hamra Mall.