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Q1 2024: Aldar Properties registers 88% surge in net profit on the back of robust property sales

Aldar Properties attributed its success to robust demand and strategic expansion

Q1 2024: Aldar Properties registers 88% surge in net profit on the back of robust property sales Aldar Properties reported a significant increase in net profit for the first quarter of 2024, rising by 88 per cent to $436 million (AED 1.6 billion) from $228 million (AED 836 million) in the same period last year. The surge in profit was attributed to robust property sales. In the first quarter of 2024, revenue for the company increased by 83% year-on-year to $1.5 billion (AED 5.6 billion). Development sales also saw a growth of 39% annually to $1.7 billion (AED 6.3 billion), driven by the launch of three new projects during this period. “We have achieved a strong balance between recurring income and development sales and continue to recycle capital effectively into new growth opportunities,” says Mohamed Khalifa Al Mubarak, chairman, Aldar Properties. “Aldar’s exceptional first-quarter results reflect the strength of the real estate market in the UAE, particularly in Abu Dhabi, where the emirate’s growing appeal as an international investment destination is our driving growth,” adds Talal Al Dhiyebi, Group CEO, Aldar Properties. Total sales across the UAE grew by 46% annually to reach $1.6 billion (AED 6.1 billion), driven by strong demand for new and existing developments in Abu Dhabi, Dubai, and Ras Al Khaimah. In Q1 2024, Sodic, Aldar’s Egyptian subsidiary, reported revenue of $45.2 million (AED 166 million). Sales for the same period amounted to $26.4 million (AED 97 million). Sodic and Nobu have teamed up for their third hospitality project in Egypt, with the Nobu Hotel and Restaurant set to open in east Cairo next year. This venture adds to their existing projects in West Cairo and North Coast Egypt. In a separate partnership, Aldar and Nobu Hospitality have also collaborated on a luxury hotel, branded residences, and fine dining experience at Abu Dhabi’s Mamsha Al Saadiyat, featuring 165 rooms and suites, including the rooftop Nobu villa. UK property developer London Square (LSQ), which was acquired in December 2023, contributed $60.7 million (AED 223 million) in revenue during the first quarter. The revenue backlog was at $436 million (AED 1.6 billion) as of the end of March. LSQ has completed the acquisition of four plots since its acquisition by the Abu Dhabi developer. Aldar also revealed that it re-circulated $544 million (AED 2 billion) to the local economy during Q1 through the localisation programme based on new contracts awarded. Since the launch of the Nafis, a federal job-oriented programme, the developer has hired 748 UAE nationals and remains on track to create 1,000 jobs by 2026.

Aldar Properties reported a significant increase in net profit for the first quarter of 2024, rising by 88 per cent to $436 million (AED 1.6 billion) from $228 million (AED 836 million) in the same period last year. The surge in profit was attributed to robust property sales.

In the first quarter of 2024, revenue for the company increased by 83% year-on-year to $1.5 billion (AED 5.6 billion). Development sales also saw a growth of 39% annually to $1.7 billion (AED 6.3 billion), driven by the launch of three new projects during this period.

“We have achieved a strong balance between recurring income and development sales and continue to recycle capital effectively into new growth opportunities,” says Mohamed Khalifa Al Mubarak, chairman, of Aldar Properties.

“Aldar’s exceptional first-quarter results reflect the strength of the real estate market in the UAE, particularly in Abu Dhabi, where the emirate’s growing appeal as an international investment destination is our driving growth,” adds Talal Al Dhiyebi, Group CEO, Aldar Properties.  

Total sales across the UAE grew by 46% annually to reach $1.6 billion (AED 6.1 billion), driven by strong demand for new and existing developments in Abu Dhabi, Dubai, and Ras Al Khaimah.

In Q1 2024, Sodic, Aldar’s Egyptian subsidiary, reported revenue of $45.2 million (AED 166 million). Sales for the same period amounted to $26.4 million (AED 97 million). Sodic and Nobu have teamed up for their third hospitality project in Egypt, with the Nobu Hotel and Restaurant set to open in east Cairo next year. This venture adds to their existing projects in West Cairo and North Coast Egypt. In a separate partnership, Aldar and Nobu Hospitality have also collaborated on a luxury hotel, branded residences, and fine dining experience at Abu Dhabi’s Mamsha Al Saadiyat, featuring 165 rooms and suites, including the rooftop Nobu villa.

UK property developer London Square (LSQ), which was acquired in December 2023, contributed $60.7 million (AED 223 million) in revenue during the first quarter. The revenue backlog was at $436 million (AED 1.6 billion) as of the end of March. LSQ has completed the acquisition of four plots since its acquisition by the Abu Dhabi developer.

Aldar also revealed that it re-circulated $544 million (AED 2 billion) to the local economy during Q1 through the localisation programme based on new contracts awarded.

Since the launch of the Nafis, a federal job-oriented programme, the developer has hired 748 UAE nationals and remains on track to create 1,000 jobs by 2026.