Aldar profit climbs 40% as sales hit $7.6bn in 2023

Aldar

Aldar Properties, Abu Dhabi’s largest developer, said net profit rose 40 percent year on year to AED4.4 billion ($1.2 billion) in 2023 as annual revenue jumped 26 percent to AED14.2 billion.

Full-year property sales hit a record AED27.9 billion ($7.60 billion), with Q4 2023 reaching an all-time of AED8.5 billion, the developer said in a statement to the Abu Dhabi bourse on Friday.

The development revenue backlog doubled to AED36.8 billion, providing strong income visibility over the next two to three years.

• Aldar awards $6bn contracts for Abu Dhabi projects

• Aldar unveils $1.4bn plan for new real estate assets

• Aldar invests $272m to expand logistics business

Aldar launched 14 new projects last year, making its first forays into Dubai and Ras Al Khaimah.

There was strong demand from end-users and investors, with overseas and resident expat buyers accounting for 66 percent, or AED16 billion, of UAE sales.

“The strength of the UAE economy, driven by a thriving business-friendly environment, continues to provide conducive conditions for the real estate market,” said chairman Mohamed Khalifa Al Mubarak.

Net profit for the fourth quarter of 2023 rose 39 percent year on year to AED1.4 billion. Revenue was up 40 percent year on year to AED4.4 billion.

The company is planning further expansion in its home market, with a strong liquidity position of AED2.9 billion in free cash and AED7.5 billion in undrawn credit facilities.

The AED5 billion pipeline of “develop-to-hold” assets across core segments and AED1 billion investment in logistics is likely to bolster recurring-income streams and long-term capital appreciation.

The developer recommended a dividend payout of AED1.3 billion for 2023.

Aldar awarded 49 contracts worth AED22 billion across various projects in 2023, it reported on Thursday. The contracts are made up of infrastructure, residential, commercial, and mixed-use developments.