Aldar Properties announced a 26.5 percent increase in first-quarter profit on Wednesday, owing to record quarterly sales and the inclusion of financial data from Egypt developer Sodic, in whom it owns a controlling stake.
The Abu Dhabi-listed property firm made a net profit of Dh688 million ($187 million) in the January-March quarter, up from Dh544 million a year earlier, according to the business. As the emirate’s real estate market continued to rise, revenue increased by 31.5 percent to Dh2.68 billion.
During the first quarter of 2022, gross profit increased by 44% to Dh1.12 billion, while earnings before interest, taxes, depreciation, and amortization increased by 22.5 percent to Dh806 million. With Dh5.6 billion in free cash and Dh4.9 billion in committed undrawn facilities, the company has a healthy liquidity position.
“During the first quarter, Aldar not only delivered a strong financial performance, but we also diversified our sources of funding and scaled up our operational capabilities in preparation for further growth opportunities,” said Talal Al Dhiyebi, group chief executive officer of Aldar Properties.
“We attracted a major investment from Apollo Global Management, which is driving the accelerated expansion and diversification of our investment property business. We also entered the high potential market of Ras Al Khaimah through two acquisitions in retail and hospitality, further increasing our geographic footprint, having entered the Egypt market at the end of last year,” Al Dhiyebi said.
Robust deal pipeline
Aldar will take advantage of a strong deal pipeline in the coming months, according to Al Dhiyebi, to expand its asset base.
“With demand for quality Abu Dhabi property remaining strong among investors and end-users, we will also ramp up development activity and new project launches, particularly on the expanded strategic land bank on Saadiyat Island,” he said.
During the second quarter, the company added to its strategic land bank for development by purchasing a 6.2 million square meter site on Saadiyat Island. With the inauguration of Louvre Abu Dhabi Residences at Saadiyat Grove, the company’s development focus will remain on Saadiyat Island, which has sparked tremendous demand from international purchasers.
“As we enter an exciting phase of growth, we continue to invest in talent and innovation to ensure efficient delivery of our ambitious strategy, while making strong progress on our ESG framework. By taking concrete steps on energy efficiency and carbon reduction, we aim to be a sustainability leader in the UAE in support of an inclusive, net-zero economy,” Al Dhiyebi said.