Abu Dhabi (Etihad)
Aldar’s net profits increased by 40% year-on-year to reach 4.416 billion dirhams in 2023 compared to about 3.144 billion dirhams in 2022. In the fourth quarter of 2023, Aldar Development recorded its highest quarterly sales ever, reaching 8.5 billion dirhams. With the group's full-year sales reaching a record level of 27.9 billion dirhams. The group's cumulative revenues also doubled to reach 36.8 billion dirhams, which heralds the growth of the group's revenues over the next two to three years.
According to the company’s business results, Aldar Development Company’s revenues in the fourth quarter of 2023 increased by 37% year-on-year to reach 2.4 billion dirhams. This increase was driven by progress in construction work, a recovery in off-plan sales, and continued collection of accumulated revenues. Revenues for the full year also rose by 19% year-on-year to reach 8.3 billion dirhams.
The value of the group’s sales in the fourth quarter of 2023 reached 8.5 billion dirhams, an increase of 65% over the same period last year, and this constitutes the highest quarterly sales ever recorded by the house. The group's full-year sales reached a record level of AED 27.9 billion, an increase of 94% year-on-year driven by strong demand from international buyers and residents for newly launched projects in the UAE, as well as Aldar's strategic entry into Dubai, Ras Al Khaimah and the United Kingdom.
The group's accumulated revenues also achieved a record level of 36.8 billion dirhams at the end of 2023, which heralds the growth of the group's revenues in the UAE, Egypt, and the United Kingdom over the next two to three years.
The company's business results showed the launch of 14 new projects with successful entry into the Dubai and Ras Al Khaimah markets, in addition to an established presence in Abu Dhabi. The company's projects have witnessed strong demand from investors and end users, with international and resident buyers accounting for 66% (16 billion dirhams) of the company's sales in the UAE. Aldar Investment Company achieved revenue growth of 40% driven by recent acquisitions, effective asset management, and strong operational performance.
Aldar confirmed the continued implementation of its international expansion strategy through the acquisition of the British real estate development company London Square, investment in private real estate credit markets in Europe, and direct investments in European logistics assets and self-storage facilities. It said that it is well positioned to achieve further expansion, driven by a strong position in the local markets with a strong liquidity position amounting to 2.9 billion dirhams in unrestricted cash balances in addition to 7.5 billion dirhams in undrawn bank facilities. It announced its investment of 5 billion dirhams in “development and retention” assets across basic sectors, and 1 billion dirhams in logistics assets, with the aim of significantly enhancing recurring income flows and increasing capital in the long term, pointing to the recommended dividends of 0.17 dirhams per share, representing a total Payouts of AED 1.3 billion in 2023. The 9% compound annual growth rate in dividends over 10 years confirms Aldar’s strong track record of delivering sustainable shareholder value.
His Excellency Mohammed Khalifa Al Mubarak, Chairman of the Board of Directors of Aldar Properties, said that the strong foundations of the national economy and the stimulating and supportive business environment for growth contribute to providing favorable conditions for the prosperity of the real estate market. He confirmed the success of Aldar, through its unique business platform, in accelerating the pace of its transformational growth in 2023 to record a significant increase in profits. It also launched many new projects and witnessed a significant improvement in the performance of the recurring income portfolio, indicating that by taking advantage of general trends and shifting to… Achieving a sustainable economy free of carbon emissions. We look forward to enhancing our pivotal role in achieving social and economic development in the United Arab Emirates, and contributing to the growth of its real estate sector in the coming years.
For his part, Talal Al Dhiyebi, CEO of Aldar Properties Group, said that Aldar continues to consolidate its position as a leading global company in the real estate sector, driven by its tireless efforts to significantly expand the scope of its presence, explaining that over the past five years, the group’s business has achieved significant growth, Sales of development projects in 2023 increased 10-fold over 2018, the total asset value of Aldar’s portfolio of investment properties increased by more than 50%, and net profits doubled to record 4.4 billion dirhams.
Al-Dhiyebi continued, “We achieved this outstanding performance within a short period of time and across our various core businesses, which contributed to diversifying and expanding the scope of our business across various sectors and regions, and enhanced our flexibility in the long term. The strength and flexibility of Aldar’s platform and the breadth of its business will enable it to seize new opportunities to continue driving sustainable growth in the long term and create added value for shareholders.”
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