For the first three months of 2024, the master developer Aldar in Abu Dhabi achieved a net profit (after tax) of Dh1.6 billion, an 88% increase over the same period in 2023. These came from revenues of Dh5.6 billion, up 83% year over year, and EBITDA of Dh1.8 billion, up 90% year over year.
The developer numbers are increasing as a result of the opening of its first residential community in Dubai and Ras Al Khaimah, in addition to the profits from its ongoing series of off-plan launches in Abu Dhabi. Aldar is expected to introduce its second project in Dubai soon.
“We look to further growth this year through our strong development pipeline and new opportunities to expand our recurring income portfolio,” said Talal Al Dhiyebi, Group CEO.
The backlog for Aldar development currently stands at more than Dh38 billion.
“Our investment portfolio continues to show solid organic growth on the back of a strong macro-economic backdrop, along with our acquisitions continuing to surpass our initial expectations.”
New luxury launch on Al Fahid Island
Aldar’s sales in the UAE increased 46% year over year to Dh6.1 billion. There were three launches in Abu Dhabi during the first quarter, and a new upscale beachfront development on Al Fahid island is scheduled to open in the second half of this year. (The Al Fahid is being promoted as Abu Dhabi’s upcoming popular “island” destination.)
The second project in Dubai by Aldar is getting ready to launch in May.
“Aldar has developed a unique business model that has rapidly increased the company’s scale,” said Mohammed Khalifa Al Mubarak, Chairman, in a statement.
“We have achieved a strong balance between recurring income and development sales, and continue to recycle capital effectively into new growth opportunities.”
London investment
Aldar had in December last bought UK developer London Square, which contributed Dh223 million as revenue in Q1-2024 and Dh101 million in sales. London Square’s ‘revenue backlog was Dh1.59 billion (343 million pounds) as at the end of March, with an average duration of 23 months, providing strong earnings visibility on revenue over the next 2 years,” said the Aldar statement.
