Aldar Properties reported strong financial results for the first half of the year, with net profit after tax rising 18 percent year on year to Dh4.9 billion, supported by steady revenue recognition from its large development backlog and stable earnings from its investment property portfolio.
The Abu Dhabi-based developer said revenue for the six months ended June 30 increased 8 percent to Dh16.8 billion, while gross profit climbed 17 percent to Dh6.2 billion. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 19 percent to Dh6.3 billion, and earnings per share improved 17 percent to Dh0.53.
Second-quarter performance also remained positive. Net profit reached Dh2.6 billion, an increase of 17 percent from the same period last year, while quarterly revenue grew 5 percent to Dh8.1 billion. EBITDA for the quarter advanced 18 percent to Dh3.3 billion.
Aldar said its development backlog stood at Dh71.6 billion at the end of June, including Dh59.9 billion in the UAE. The company said the backlog provides strong revenue visibility over the next two to three years as projects continue to be completed and handed over.
Despite the solid earnings, development sales slowed during the first half. Group development sales fell 34 percent to Dh12.1 billion, while UAE sales declined 46 percent to Dh9.4 billion. In the second quarter, group sales dropped 43 percent to Dh5.4 billion and UAE sales fell 61 percent to Dh3.5 billion.
The company attributed the decline to a cautious approach to launching new projects in response to current market conditions rather than weaker demand.
International and expatriate buyers continued to play a major role in the company’s sales performance. Overseas and expatriate residents purchased Dh7.6 billion worth of properties during the first half, accounting for 80 percent of total UAE sales.
Chairman Mohamed Khalifa Al Mubarak said Abu Dhabi’s continued investment in infrastructure, industries and quality of life was attracting both people and capital to the emirate, positioning Aldar to benefit from the city’s long-term growth.
Group Chief Executive Officer Talal Al Dhiyebi said the company delivered healthy operating margins, steady revenue growth and strong profitability during the period. He added that the UAE development pipeline continued to generate solid revenue while operations in the United Kingdom and Egypt gained momentum.
Aldar Development, which includes operations in the UAE, Egypt and the UK, reported a 10 percent increase in revenue to Dh12.4 billion, while EBITDA rose 21 percent to Dh4 billion.
The company’s overseas businesses posted particularly strong growth. Egypt’s SODIC recorded first-half sales of Dh1.4 billion, up 171 percent, while UK-based London Square reported sales of Dh1.2 billion, representing a 236 percent increase.
Aldar Investment, which oversees the group’s income-generating assets, recorded revenue of Dh4.2 billion, up 12 percent, while adjusted EBITDA increased 18 percent to Dh1.8 billion. Assets under management reached Dh56 billion, supported by occupancy rates of 99 percent in commercial properties, 96 percent in residential assets and 97 percent across industrial and logistics facilities.
The company also strengthened its financial position by securing a Dh5 billion sustainability-linked revolving credit facility. Total liquidity stood at Dh37.1 billion, including Dh16.8 billion in cash and Dh20.3 billion in committed undrawn banking facilities.
