Aldar Properties, the leading real estate developer, manager, and investor in the UAE has reported a 22 percent surge in profit during the first quarter of 2023.
This record growth was supported by the increase in revenue as a result of the rise in property sales. The strong demand from both the local and expat buyers along with the record development in the first quarter supports this growth.
The Q1 development sales worth AED 4.5 billion have boosted the net profit up to AED228 million
The driving forces behind the cross-platform growth are the strong quarterly revenue sales, continued execution of the development revenue backlog, and the increasing recurring income from investment properties. All this reflects the development of the real estate market in Abu Dhabi.
The revenue of Aldar Properties has increased by 14 percent to a value of AED 3.1 billion during the first three months of 2023 from AED 2.7 billion in the same quarter the previous year. The company said that the highest-ever revenue backlog of AED 18.8 billion provides them revenue visibility over the following two to three years.
Chief Executive of the Aldar Group, Talal Al Dhiyebi stated that the company has maintained an excellent result in the first three months of 2023, against the backdrop of strong economic fundamentals in the United Arab Emirates.
The company plans an expansion of its landbank by attaining the Al Fahid Island which will offer a waterfront to its development pipeline. It has also made an entry into the real estate market of Dubai through a collaborative venture with Dubai Holding.
This new connection will help in the development of three new communities which will be built on 3.5 million square meters of land.
Aldar Properties has also joined hands with Mubadala for a new venture to develop commercial properties on Al Maryah Island. This initiative takes advantage of the huge demand for prime office spaces in the expanding financial center of Abu Dhabi.
Talal Al Dhiyebi said that the company has introduced several new residential concepts in Abu Dhabi during the first quarter of the year.
And these concepts gained much popularity among local and foreign investors. The victory of these launches supported the biggest quarterly sales worth AED 4.5 billion. This has certainly played a significant role in the outstanding performance of Aldar Properties during the first quarter of the year.
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A 93 percent tenant occupancy across all assets, strong rental returns, and favorable contributions from new purchases within the portfolio, particularly the four office buildings at ADGM all contributed towards the continuing growth of Aldar’s investment platform, he said.
Aldar Properties has kept strong liquidity status a free cash of about AED 6.1 billion and AED 4.4 billion of committed undrawn facilities which helped the company to attain great opportunities for growth.
The company has also proved its dedication towards climate action with the launch of a comprehensive Net Zero Plan that summarizes the plan pledge of the company to decarbonize the business by 2050.
The company expects that as the UAE continues to expand its appeal as a lifestyle and business destination, the real estate market too will continue to experience strong growth. And the company will continue to make disciplined capital arrangements across all its platforms in this light to attain the transformational development goal, said the CEO.