Leading UAE developer Aldar Properties has reported a 52% jump in its net profit for the second quarter of 2023 which soared to AED1.3 billion ($353 million) mainly driven by record development sales and strong contributions from its recurring income portfolio.
Announcing the results for the three-month period ended June 30, 2023, Aldar said the value of revenues amounted to about AED3.2 billion ($871 million), up 21% on an annual basis.
The quarterly report outlined a solid organic growth across the recurring income portfolio, driven by stronger operating performance, with increased leasing activity, higher occupancy, and rental income.
Moreover, acquisitions made in 2022 served as drivers for accelerated growth, yielding strong returns and positively contributing to the bottom line, it stated.
The report also highlighted the ongoing execution of transformational growth strategy with a continued focus on disciplined capital deployment and geographic expansion outside of Abu Dhabi to unlock new opportunities.
On its H1 results, the Abu Dhabi developer said it had recorded a net profit of AED2.1 billion, thus registering an increase of 38% compared to the last year, while its revenue soared to AED6.3 billion, posting an increase of about 18%.
Additionally, the value of total profits for the first six months amounted to about AED2.7 billion, of which AED1.4 billion amounted to Aldar’s total profits in Q2 2023.
On the solid performance, Chairman Mohamed Khalifa Al Mubarak, said: “Aldar continues to build on its formidable track record, capitalizing on significant opportunities to deliver sustainable value to all our stakeholders.”
Aldar, he stated, reported a record development sale of AED11.6 billion with 10 new project launches year-to-date.
Aldar recorded strong growth in development revenue backlog at AED24.4 billion, driven by robust market demand providing revenue visibility over the coming 4 years, he stated.
Sustained increase in demand from both overseas and resident expat buyers underscores the continued appeal of Aldar’s offering and Abu Dhabi’s status as a premier investment and lifestyle destination, he added.
Group CEO Talal Al Dhiyebi said cross-platform growth gathers pace fueled by the execution of development revenue backlog, strong quarterly development sales, and growing contributions from the recurring income portfolio.
“We look forward to launching our development franchise into Dubai and Ras Al Khaimah in the coming months and deploying further capital to diversify our investment property platform,” he added.