Aldar’s first-quarter net profit surges 81% on higher property sales

Aldar Properties, Abu Dhabi’s biggest listed developer, reported a more than 81 per cent annual jump in its first-quarter net profit on higher sales.

The surge in profit comes as the UAE’s property market remains robust amid the continued economic momentum.

Net profit attributable to owners of the company for three months to the end of March climbed to Dh1.3 billion ($353 million), the company said in a filing yesterday to the Abu Dhabi Securities Exchange, where its shares are traded. Revenue and rental income for the period surged 83 per cent annually to Dh5.6 billion. Development sales climbed 39 per cent on an annual basis to Dh6.3 billion, with overseas and resident expatriate buyers accounting for 75 per cent of Aldar’s UAE sales at Dh4.6 billion.

“We have achieved a strong balance between recurring income and development sales and continue to recycle capital effectively into new growth opportunities,” said Mohamed Al Mubarak, chairman of Aldar Properties. “In the coming period, our diverse real estate platforms will sustain their pace of expansion.”

The UAE’s property market continues to record strong growth on the back of government initiatives and the expansion of its economy.

Abu Dhabi recorded 2,238 off-plan sales transactions last year (accounting for 75.1 per cent of overall sales), which were up 39.4 per cent annually, according to ValuStrat.

The sales volume for ready homes also rose 36.5 per cent to 740 transactions last year.

The market for luxury properties is also booming in the country, with Dubai’s prime market hitting a record in 2023 as sales of $10 million-plus homes nearly doubled to $7.6 billion, performing better than London and New York, Knight Frank said last month. While sales within the price bracket rose by 91 per cent last year, about a third (28 per cent) of the 431 transactions were completed in the final quarter.

Last month, Aldar sold Abu Dhabi’s most expensive apartment for Dh137 million.

The three-bedroom penthouse, covering an entire floor at Nobu Residences Abu Dhabi on Saadiyat Island, also fetched the emirate’s highest price per square metre, at more than Dh96,000 a square metre.

Aldar has also made several acquisitions in recent quarters as it seeks to expand its portfolio of investments. Last year, the company bought UK developer London Square for Dh1.07 billion, marking its first acquisition outside the Mena region.

In September, the Aldar Estates unit of the company acquired FAB Properties, which provides property management services across the UAE. Earlier this year, it bought seven central logistics hubs and an adjacent land plot in Dubai Investments Park for Dh1 billion.

“Our investment portfolio continues to show solid organic growth on the back of a strong macroeconomic backdrop,” Talal Al Dhiyebi, group chief executive of Aldar, said.

Aldar will “look forward to further growth this year through our strong development pipeline and new opportunities to expand our recurring income portfolio”, Mr Al Dhiyebi said.

Aldar is exploring the issuance of benchmark green sukuk this year to support its growth and sustainability ambitions, its chief financial and sustainability officer Faisal Falaknaz told The National last month.

Revenue and rental income for the threemonth period jumped 83 per cent annually to Dh5.6 billion