Aldar Properties reported a 42 per cent year-on-year jump in sales during the first quarter of 2025, with strong demand for existing inventory and new launches propelling its revenues to AED8.9 billion (US$2.42 billion).
That led to a 33 per cent YoY increase in profit before tax to AED2.2 billion (US$599 million) and a 22 per cent rise in net profit after tax to AED1.9 billion (US$520 million).
The increasingly diversified group development backlog has reached a record AED55.7 billion (US$15.17 billion), including UAE backlog of AED46.7 billion (US$12.72 billion), driving revenue recognition over the next 2-3 years. The group revenue backlog was AED54.6 billion at the end of December 2024.
Aldar reports strong Q1
Chairman Mohamed Khalifa Al Mubarak was confident of his company’s continuing momentum, given its strong fundamentals, a healthy UAE economy, and a massive order book.
Al Mubarak commented: “Aldar’s strong start to the year demonstrates the depth and resilience of our diversified platform, and our ability to execute and grow with discipline against a clear strategy for long-term value creation.
“Looking forward, the UAE’s sustained investment in strategic sectors and its commitment to a business-friendly environment and economic diversification provide a powerful foundation for stability and growth. In this conducive environment and with a development backlog reaching a record AED55.7 billion, Aldar is well-positioned to deliver sustainable performance, deploying capital with care and reinforcing our role as a long-term partner in shaping the UAE’s economic development.”
Aldar developments continued to attract strong interest from international buyers, with UAE sales to overseas and expat resident customers rising to AED7.4 billion (US$2 billion), representing 87 per cent of total UAE sales.
Both Aldar Development, comprising Property Development and Sales, Project Management Services, and International Business; and Aldar Investment, comprising four main segments (Investment Properties, Aldar Hospitality, Aldar Education and Aldar Estates) representing over AED46 billion (US$12.53 billion) of assets under management (AUM) performed strongly during the quarter.
High occupancy and strong rental growth across the core investment portfolio underpinned solid performance by Aldar Investment as revenue increased 15 per cent to AED1.9 billion (US$520 million), while adjusted EBITDA rose 10 per cent to AED764 million (US$208 million). Excluding gains from disposals and divestments, the platform’s adjusted EBITDA rose 20 per cent.
Aldar Development’s revenue increased 46 per cent YoY to AED5.7 billion (US$1.55 billion), driven by recognition of a sizeable backlog, alongside strong sales from new launches and existing inventory. EBITDA rose 50 per cent to AED1.8 billion.
The company also strengthened its capital structure, issuing AED3.7 billion (US$1 billion) hybrid capital notes and a AED1.8 billion (US$500 million) green sukuk, apart from securing a AED9 billion syndicated revolving credit facility and a AED1.8 billion (US$500 million) hybrid capital solution from Apollo. Its strong liquidity position supports growth with AED10.2 billion (US$2.78 billion) in free and unrestricted cash, and AED19.3 billion (US$5.26 billion) in undrawn committed credit facilities as at end of March.
Group Chief Executive Officer, Talal Al Dhiyebi, said: “Aldar delivered a robust financial performance in the first quarter, with continued momentum across our core businesses.
“Our development sales remained extremely strong, while our pipeline of new launches is on track amid continued demand from both local and international buyers. Meanwhile, our investment portfolio continued to perform positively, with recent acquisitions, increasing rental rates, and near-full occupancy levels driving revenue growth and income stability.
“In early 2025, we took proactive steps to reinforce Aldar’s financial strength and resiliency, increasing liquidity through capital markets issuances and a syndicated loan. We have full confidence that our diversified platform, robust revenue backlog, and prudent capital deployment strategy position the company well to create long-term value for our stakeholders.”
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