Aldar Properties' Net Profit Soars 47% to AED 6.5 Billion in 2024
The company's revenues surged by 62%, totaling AED 22.99 billion by the end of December 2024, compared to AED 14.16 billion in 2023. Basic and diluted earnings per share also saw an uptick, rising to AED 0.69 from AED 0.48 in the prior year.
Mohamed Khalifa Al Mubarak, Chairman of Aldar, highlighted the company's record-breaking sales performance, stating, "Aldar Group sales increased 20% to a record high of AED 33.60 billion, largely driven by exceptional demand for our residential developments in key UAE destinations."
In the first nine months of 2024, Aldar achieved development sales of AED 24 billion, marking a 24% year-on-year increase. This momentum was sustained by strong demand for new project launches and existing inventory. The company introduced three new projects in the third quarter: Verdes by Haven in Dubai, The Arthouse on Saadiyat Island, and Yas Riva, bringing the total number of launches to eight for the year.
The diversification of Aldar's customer base is evident, with overseas and expatriate resident buyers accounting for 76% of UAE sales by the end of September, amounting to AED 15.3 billion. This trend underscores the UAE's growing appeal to international investors.
Aldar's development backlog reached a record high of AED 48.6 billion, with AED 40.5 billion attributed to UAE projects. This backlog is expected to drive revenue recognition over the next two to three years, providing a stable foundation for future growth.
The company has strategically expanded its land bank to support future developments in Abu Dhabi and internationally. Notably, London Square, a subsidiary of Aldar, acquired three new sites in the third quarter, bringing the total number of site acquisitions in London to ten for the year.
Aldar Investment, the company's asset management arm, reported revenues of AED 5 billion for the first nine months of 2024, a 24% year-on-year increase. This growth was bolstered by strategic acquisitions made in 2022 and 2023, which have exceeded performance expectations.
A strategic partnership with Mubadala was established to own and manage assets valued at AED 30 billion in Abu Dhabi. This collaboration aims to drive significant scale, diversification, and value for Aldar's business operations.
The company continued its capital deployment strategy to support a develop-to-hold asset pipeline, which now stands at AED 9.35 billion across the UAE. This approach aligns with Aldar's commitment to long-term value creation and sustainable growth.
Strengthening its presence in Dubai, Aldar entered the commercial sector with the acquisition of '6 Falak', a Grade A tower adjacent to the Dubai International Financial Centre. Additionally, a joint venture with Expo City Dubai was announced, further expanding Aldar's footprint in the emirate.
Aldar maintains ample liquidity to support its growth agenda, with AED 9.5 billion in free and unrestricted cash, and AED 8.4 billion in undrawn committed credit facilities. This financial flexibility positions the company to capitalize on future investment opportunities and navigate market dynamics effectively.
The UAE real estate market continues to display solid fundamentals, driven by strong end-user demand and increasing global investor interest. Aldar's strong financial and operational performance in 2024 reflects these favorable market conditions and the company's strategic initiatives.
Talal Al Dhiyebi, Group CEO of Aldar, commented on the company's performance, stating, "In the first nine months of 2024, Aldar has seen remarkable growth across all areas of the business. Our development arm continues to deliver record performance, with international demand driving robust sales across our developments."
Aldar's success has been driven by the UAE's robust domestic investment climate and its ability to attract international capital and businesses. This favorable environment has enabled the company to scale rapidly, balancing the expansion of recurring income streams with record development sales, while strategically reinvesting capital into new opportunities and securing partnerships that will drive further scale and value for both Aldar and Abu Dhabi.
The company's strategic initiatives, including land bank replenishment, diversification of the customer base, and expansion into new markets, have positioned Aldar for sustained growth. The partnership with Mubadala and the entry into Dubai's commercial sector are expected to contribute significantly to the company's future performance.
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