Aldar's third-quarter net profit surges 43% on higher revenue

Net income in the three months to the end of September rose to $216 million amid record sales

Aldar's headquarters in Abu Dhabi. The developer has unveiled several projects this year as it expands its property portfolio. Victor Besa / The National

Aldar Properties, Abu Dhabi’s biggest listed developer, reported a 43 per cent annual increase in third-quarter profit as revenue climbed on the back of record development sales and strong performance across recurring income portfolio.

Net profit attributable to equity-holders of the company for the three months to the end of September rose to Dh794 million ($216 million), Aldar said in a filing on Monday to the Abu Dhabi Securities Exchange, where its shares trade.

Revenue and rental income for the period increased by 27 per cent, year on year, to Dh3.5 billion.

Record development sales of Dh7.8 billion in the third quarter brought nine-month sales to their highest level of Dh19.4 billion, with 11 new projects launched so far this year.

Aldar will continue to explore opportunities for further “disciplined capital deployment” in its home market and abroad, it said.

“The increasing interest from international buyers in our developments not only highlights the global appeal of Aldar’s offering but also reaffirms Abu Dhabi’s position as a preferred destination for business, leisure and long-term residency,” said Aldar's group chief executive Talal Al Dhiyebi.

“Our investment properties, particularly our thriving commercial portfolio, consistently exhibit solid operational performance and we are really seeing the positive impact of recent acquisitions across the office, retail and hospitality sectors.”

Aldar is at the heart of Abu Dhabi’s efforts to develop its property sector. The developer continues to expand its portfolio, announcing a number of new deals this year.

A unit of Aldar Properties in September said it acquired FAB Properties, which provides property management services, as the ADX-listed developer continues to expand its portfolio in the country.

In July, Aldar unveiled a $2.18 billion Yas Island project called Balghaiylam in partnership with the Abu Dhabi Housing Authority to boost the stock of integrated and sustainable residential communities in the capital.

Aldar is also looking to develop new commercial assets on Al Maryah Island in Abu Dhabi and expand its property portfolio further.

The company's first residential development in Dubai – Haven by Aldar – is set for the public launch due to start on October 31.

The UAE’s residential market continued its robust growth in the third quarter of 2023, with transaction volumes and prices rising in Abu Dhabi on the back of higher demand from buyers, according to consultancy CBRE.

The total volume of residential transactions in Abu Dhabi rose by 84.3 per cent annually to 2,930 in the three months to the end of September, driven by a 101.6 per cent growth in off-plan sales and a 46 per cent increase in secondary or ready home sales, CBRE said in an October report.

Average apartment prices in Abu Dhabi were up 0.9 per cent on an annual basis while average villa prices dropped marginally by 0.1 per cent during the three-month period, the report said.

New growth strategy

"Our home market, Abu Dhabi, is bolstered by a robust economy, and a regulatory environment that is conducive to business and investment," Mohamed Al Mubarak, chairman of Aldar Properties, said in the statement on Monday.

"This positive backdrop has allowed Aldar to undertake a journey of transformational growth, including entry into regional markets such as Egypt, Ras Al Khaimah and Dubai."

To further its growth, Aldar has a new strategy to enter into select international markets, with a particular focus on Europe, the chairman said.

The move "will allow us to build scale, diversify, and deliver sustainable growth. We aim to target investments that are core to our current operations and across high-growth real estate sectors in mature markets that are characterised by strong fundamentals, demographic shifts, digitised economies, and evolving consumer preferences", Mr Al Mubarak said.

“We see this as an opportune moment to tap emerging trends and also to leverage new relationships to bring investment and innovation back to our core market, the UAE.”