Aldar, one of the UAE’s top real estate developers, on Tuesday reported a 24 per cent year-on-year increase in net profit after tax to Dh4.1 billion for the first-half.

Net profit before tax surged 35 per cent to Dh4.7 billion, driven by strong demand across its residential and commercial offerings and continued expansion of its investment portfolio.

The developer recorded group development sales of Dh18.3 billion in the first six months of 2025, marking a 31 per cent jump from the same period last year. This sales momentum was fuelled by robust demand for existing inventory and five high-profile project launches in the UAE, including two developments on Fahid Island, Waldorf Astoria Residences Yas, Manarat Living III, and The Wilds in Dubai.

The company’s development backlog climbed to a record Dh62.3 billion, with Dh53.4 billion concentrated in the UAE, offering solid revenue visibility over the next two to three years. The group’s earnings per share rose 27 per cent to Dh0.45, underscoring cross-platform growth.

Chairman Mohamed Khalifa Al Mubarak credited the results to the strength of Aldar’s diversified business model, and the UAE’s sound economic fundamentals. “The country’s growing population and global appeal are driving sustained demand for quality real estate,” he said.

With Dh12.2 billion in free cash and Dh17.5 billion in undrawn bank facilities, Aldar said it remains well-positioned for sustained growth. Group CEO Talal Al Dhiyebi said, “Our momentum in the first half reflects disciplined capital deployment and a clear focus on long-term value creation across all platforms.”

Aldar’s expanding investment business also played a significant role. Adjusted Ebitda for Aldar Investment increased 18 per cent year-on-year to Dh1.6 billion, supported by high occupancy and rising rents. The group’s assets under management reached Dh47 billion by the end of June, bolstered by the strategic acquisition of commercial and residential assets in Masdar City and warehousing facilities at Almarkaz Industrial Park.

A notable transaction in July — a Dh400 million record-setting mansion sale at Faya Al Saadiyat — demonstrated Abu Dhabi’s growing luxury real estate appeal, particularly among ultra-high-net-worth individuals. International investor interest continued to climb, with overseas and expatriate buyers accounting for Dh14.7 billion, or 84 per cent, of Aldar’s UAE sales in H1.

Additionally, Aldar sold a residential tower in Mamsha Gardens to Hong Kong-based Gaw Capital for Dh586 million, further underscoring global institutional appetite for UAE real estate assets. In terms of development revenue, Aldar reported Dh11.3 billion for H1, up 50 per cent year-on-year, with Ebitda rising 47 per cent to Dh3.3 billion. Cash collections stood at Dh7.9 billion, reflecting accelerated project delivery.

Project management services backlog hit Dh86 billion, including Dh56.9 billion worth of developments currently under construction, mostly for the Abu Dhabi government and Aldar. Aldar’s international arms also contributed meaningfully.

Egypt-based SODIC posted Dh291 million in revenue and Dh536 million in sales, with a backlog of Dh6.6 billion. UK-based London Square generated Dh710 million in revenue and Dh362 million in sales in H1, with a backlog of Dh2.3 billion. In the investment portfolio, commercial assets delivered Dh420 million in EBITDA, up 11 per cent, supported by near full occupancy and rising rents.

Residential assets added Dh263 million in EBITDA, marking a 35 per cent increase, aided by strong rental growth and 98 per cent occupancy. Retail EBITDA rose 12 per cent to Dh277 million, with Yas Mall maintaining 98 per cent occupancy and a 15 per cent rise in footfall. The logistics platform also grew, with a 14 per cent rise in H1 EBITDA to Dh35 million, backed by 97 per cent occupancy and the acquisition of prime warehousing assets in Almarkaz. A cold storage facility in Dubai South and the Al Falah logistics hub are expected to support future growth. Aldar’s hospitality segment saw 70 per cent occupancy in H1, with RevPAR rising 3 per cent and ADR up 8 per cent.

However, H1 EBITDA declined 4 per cent to Dh171 million due to asset repositioning under its Dh1.5 billion redevelopment plan. The Aldhafra Resort opened in March as part of this portfolio upgrade. In education, EBITDA increased 9 per cent to Dh127 million, supported by rising enrolments and fee growth.

Total student numbers reached 37,000, with further growth expected from new campuses, including a super-premium King’s College School Wimbledon branch planned for Fahid Island.Aldar Estates recorded 24 per cent growth in H1 EBITDA to Dh192 million, with expansion in property and facilities management services contributing to the performance.

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Source: Khaleej Times 

30th July 2025