The Aldar Group’s third-quarter gross profit surged 20 percent to Dh834 million, with Aldar Development recording its highest-ever quarterly sales of Dh2.69 billion.
According to a statement from the Abu Dhabi-based conglomerate, its well-balanced business continued to grow, driven by another quarter of record development sales and steady recurring income generated by Aldar Investment. Exceptional financial performance driven by improved operating conditions underpinned by the UAE’s world-leading vaccination program, recovering sentiment in the markets, and pro-growth government policies and initiatives.
Aldar Development’s quarterly sales of Dh2.69 billion marks its fifth consecutive quarter of sales over Dh1 billion, bringing the company’s year-to-date total to Dh6.14 billion. A record Dh5.86 billion in revenue backlog supports future revenue visibility.
“The July-September quarter net profit climbed 14 per cent to Dh474 million,” according to the group statement.
Aldar Property’s group chief executive, Talal Al Dhiyebi, stated that the company’s strong performance continued into the third quarter, displaying its ability to sustain growth.
“As post-pandemic recovery gathered momentum, our diversified businesses continued to rebound at pace, with the third quarter delivering Dh2.69 billion in development sales, complemented by solid leasing activity for our retail and commercial investment property portfolios,” he said.
Aldar continues to contribute to the economic and social fabric of the UAE, he said. In the first three quarters of this year, our ‘National In Country Value’ programme invested Dh1.92 billion locally through contracts awarded to UAE-based partners.
“Furthermore, we have made a commitment to create employment opportunities for 1,000 UAE nationals over the next five years,” he said.
Return of customer confidence
In addition to improving macroeconomic conditions, a return of customer confidence, and evolving preferences toward high-quality, spacious, and lifestyle-oriented properties, Aldar said the company continues to deliver strong sales.
The company’s revenue grew by four per cent to Dh792 million in the third quarter, and its net operating income (NOI) increased by one per cent to Dh392 million, led by the retail portfolio and the hospitality and leisure businesses. The nine-month NOI was Dh1.17 billion, up five percent.
A rebound in retail portfolios
Further, the company said its retail portfolio reported a noticeable rebound in footfall and sales to levels approaching pre-Covid levels. Strong liquidity position, with Dh3.6 billion of unrestricted cash and Dh4 billion of undrawn committed facilities, to fuel sustainable long-term growth opportunities, according to the statement.
“We expect to see operating activities across our commercial and retail assets continue to grow in line with the macroeconomic recovery that is well underway. Aldar continues to seek attractive and value accretive investment opportunities to grow our portfolio of operating assets and we plan to bring more new developments to the market, driven by our expanding client base, including overseas investors,” Al Dhiyebi said.
The Hospitality and Leisure business continues to grow with 128% growth in NOI for the nine-month period, primarily driven by prudent cost management. Despite travel restrictions, several important announcements, such as the easing of Abu Dhabi border restrictions and exemptions from quarantine requirements, are expected to boost activity.
Aldar Education reported a 27% increase in nine-month NOI to Dh124 million, driven by an increase of 3% in student enrollment to 26,370, up from 25,630 in the same period last year.