Abu Dhabi-based real estate heavyweight Aldar’s net profit for the year 2023 was up 40 percent to AED4.4 billion ($1.2 billion) on the back of record development sales and expanded investment portfolio. It includes the highest-ever quarterly development sales of AED8.5 billion ($2.31 billion) in Q4, up 65 percent, which took full-year sales to a record AED27.9 billion ($7.6 billion), up 94 percent.
Aldar Development’s revenue in Q4 2023 increased 37 percent YoY to AED2.4 billion ($650 million) and full-year revenue increased 19 percent to AED8.3 billion ($2.2 billion).
The company launched 14 new projects during the year. Development revenue backlog doubled to AED36.8 billion ($10 billion), providing strong income visibility over the next 2-3 years.
Aldar Investment recorded 40 percent revenue growth driven by recent acquisitions, active asset management, and strong operational performance across the business.
Adjusted EBITDA for Aldar Investment rose 43 percent to AED635 million ($172.9 milion) in Q4 2023 and up 40 percent for the whole year to AED2.3 billion ($630 million). Its assets under management grew from AED32 billion ($8.71 billion) in the previous year to AED37 billion ($10.07 billion).
Aldar enjoys a strong liquidity position of AED2.9 billion ($789.6 million) in free cash and AED7.5 billion ($2.04 billion) in undrawn credit facilities, which will contribute to further expansion, centred on its home market.
The board has recommended a dividend of AED0.17 per share, which represents a total payout of AED1.3 billion ($350 million) in 2023.
Mohamed Khalifa Al Mubarak, Chairman of Aldar, commented: “The strength of the UAE economy, driven by a thriving business-friendly environment, continues to provide conducive conditions for the real estate market. Leveraging its unique platform, 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.
“By further capitalising on secular trends and the transition to a net zero economy, we look forward to continuing to play a central role in the UAE’s dynamic socioeconomic development and the growth of its real estate sector in the coming years.”
Talal Al Dhiyebi, Group Chief Executive Officer, Aldar, added: “Aldar is transforming into a world-class industry heavyweight, operating at a significantly elevated scale. Over the past five years, our business has grown significantly. Development sales in 2023 surged tenfold compared to 2018, the gross asset value of our investment property portfolio grew by more than fifty percent, and net profit more than doubled, reaching AED 4.4 billion.
“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. The strength, agility, and scale of our platform will allow Aldar to capitalise on new opportunities to continue driving long-term sustainable growth and shareholder value.”
Aldar’s successful expansion spurs growth
Strong demand for both new and existing developments in Abu Dhabi, as well as the successful foray into Dubai and Ras Al Khaimah led to total all-time high sales in the UAE for Q4 2023 of AED7.2 billion ($1.96 billion), up 91 percent YoY. Full-year sales in the country also increased to a record AED24.3 billion ($6.62 billion), up 121 percent YoY.
SODIC, the Egyptian real estate company acquired by Aldar and ADQ, contributed AED616 million ($167.7 million) in revenue and AED152 million ($41.4 million) of EBITDA to Aldar Development in Q4 2023, while the full-year revenue stood at AED1.2 billion ($326.75 million) and EBITDA at AED227 million ($61.8 million).
