Aldar Properties has reported a significant increase in its net profit for the first half of 2024, driven by robust sales and a strong investment portfolio. The company announced a revenue of AED 14 billion ($3.81 billion) for H1 2024, marking a 21% year-on-year increase.
This revenue boost resulted in a gross profit of AED 3.9 billion ($1.06 billion), up 43%, and a net profit after tax of AED 3.3 billion ($900 million), representing a 57% rise.
The demand for Aldar’s new launches and existing inventory remains high, with overseas and resident expatriate buyers contributing AED 10.2 billion ($2.78 billion), or 79%, of the UAE sales in the first half.
Aldar’s record development backlog now stands at AED 39 billion ($10.62 billion), with the highest-ever UAE backlog of AED 33.2 billion ($9.04 billion), ensuring revenue recognition over the next two to three years.
Strong Financial and Operational Performance
Mohamed Khalifa Al Mubarak, chairman of Aldar Properties, commented: “The UAE real estate market continues to display solid fundamentals driven by strong end-user demand and increasing global investor interest, and this is reflected in Aldar’s strong financial and operational performance in the first six months of 2024. Underpinning this strength is the dynamism of the UAE economy. Through pro-growth policies and a business-friendly environment, the UAE has emerged as a premier destination for international corporates, entrepreneurs, and capital. Aldar is integral to the country’s development, providing exceptional lifestyle destinations and building the commercial and logistics infrastructure needed to cater to the growing demand.”
Talal Al Dhiyebi, Group Chief Executive Officer, added: “Aldar’s exceptional performance in the first half of 2024 highlights our effective and diversified business model, strong brand, and a positive operating environment in the UAE. With 79% of our UAE residential sales coming from overseas and expat buyers, we are experiencing a significant expansion of our customer base and benefiting from the country’s appeal to international investors. At the same time, our investment portfolio is thriving amid favorable economic conditions and driven by strategic acquisitions over the last couple of years. We are entering into one of the most exciting periods of activity and growth in Aldar’s history.”
Growth Across All Business Units
Aldar Properties Development reported a 94% increase in revenue, rising from AED 3.88 billion to AED 7.52 billion, while Aldar Investment saw a 30% increase in revenue, reaching AED 3.23 billion.
In the hospitality sector, Adjusted EBITDA decreased by 2% year-on-year in H1 2024 to AED 178 million, due to one-off income recognized in the same period last year. However, it was up 8% year-on-year to AED 71 million for Q2 2024, with occupancy rates at 73%.
Aldar Education reported an adjusted EBITDA of AED 61 million for Q2 2024, up 19% year-on-year, and AED 116 million for H1 2024, showing a 25% year-on-year growth. Enrollments increased by 27%, with the total number of students in 11 owned-and-operated schools and 19 managed schools across Abu Dhabi, Dubai, and Northern Emirates exceeding 36,500.
Aldar Estates significantly ramped up its operations, now managing 158,000 units across 2 million sqm of gross leasable area and holding contracts valued at AED 1.9 billion. This led to a 175% surge in Adjusted EBITDA in Q2 2024 to AED 84 million and a 160% growth in H1 2024 to AED 155 million.
