Aldar profit rises 18% on backlog execution

Aldar Properties posted an 18% rise in first-half net profit after tax to AED 4.9 billion, supported by the conversion of its development backlog into revenue and stronger recurring income from its investment properties portfolio.

Revenue for the six months ended June increased 8% year on year to AED 16.8 billion, while gross profit climbed 17% to AED 6.2 billion. Earnings before interest, tax, depreciation and amortisation rose 19% to AED 6.3 billion, and earnings per share advanced 17% to AED 0.53.

Second-quarter net profit after tax increased 17% to AED 2.6 billion. Quarterly revenue grew 5% to AED 8.1 billion, while EBITDA rose 18% to AED 3.3 billion, reflecting continued project delivery and a growing contribution from income-generating assets.

Aldar Development generated first-half revenue of AED 12.4 billion, up 10%, and EBITDA of AED 4 billion, an increase of 21%. The division benefited from the recognition of contracted sales accumulated during earlier periods of strong demand across Abu Dhabi and other markets.

The group’s development revenue backlog stood at AED 71.6 billion at the end of June, including AED 59.9 billion in the UAE. The backlog provides revenue visibility for the next two to three years, with the UAE portion carrying an average recognition period of about 29 months.

Development sales fell 34% to AED 12.1 billion during the half, reflecting fewer project launches and a more measured release strategy amid changing market conditions. UAE sales declined 46% to AED 9.4 billion, while second-quarter UAE sales dropped 61% to AED 3.5 billion.

The company launched three UAE projects during the second quarter: Yas Park Place, Al Ghadeer Gardens and The Orchids at Yas Acres. The developments focus largely on family-oriented villas, townhouses and mid-rise homes, segments that continue to attract end-users and long-term investors.

Overseas and expatriate resident buyers accounted for AED 7.6 billion, or 80%, of Aldar’s UAE sales during the half. The figure underlined the sustained appeal of Abu Dhabi property among international purchasers despite a more selective launch schedule.

International operations helped offset the decline in domestic sales. Egypt-based SODIC recorded first-half sales of AED 1.4 billion, up 171%, supported by additional launches and demand for mid-market housing. Its revenue backlog reached AED 8.7 billion.

London Square delivered sales of AED 1.2 billion, an increase of 236%, driven by launches including Bermondsey Phase 3, Wimbledon Bridge House and Ransome’s Wharf. Its backlog rose to AED 3.1 billion after the company expanded its development pipeline in London.

Aldar Investment reported a 12% rise in first-half revenue to AED 4.2 billion, while adjusted EBITDA increased 18% to AED 1.8 billion. Growth was supported by high occupancy, rental increases and contributions from acquired commercial, residential and logistics properties.

Assets under management rose to AED 56 billion. Aldar’s develop-to-hold pipeline, covering projects intended to generate recurring rental income, reached AED 20 billion after five developments were added during the second quarter.

Investment-property adjusted EBITDA increased 30% to AED 1.3 billion, with portfolio occupancy at 95%. Commercial properties remained 99% occupied, while residential occupancy stood at 96%.

Retail adjusted EBITDA rose 68% to AED 463 million, supported by the performance of core shopping assets and the contribution from The Galleria Luxury Collection. Yas Mall maintained occupancy of 96%, although visitor numbers and tenant sales were slightly below the corresponding period last year.

Industrial and logistics adjusted EBITDA jumped 173% to AED 95 million. The portfolio operated at 97% occupancy and benefited from assets at Al Markaz and Khalifa Economic Zones Abu Dhabi. Aldar also completed an AED 650 million purchase of logistics properties from AD Ports Group, adding 163,000 square metres of gross leasable area.

Hospitality earnings weakened as geopolitical disruption affected regional travel. Adjusted EBITDA from the segment fell 18% to AED 140 million, while occupancy declined to 54% from 70%. Revenue per available room slipped 7% to AED 430, although the average daily rate rose 21% to AED 800.