During the first nine months of 2024, Aldar witnessed remarkable growth across all areas of business with a strong development sales momentum of AED24 billion ($6.53 billion), up 24 percent annually, driven by solid demand for new launches and inventory. As demand for its latest developments rose, the company’s profit surged 52 percent to AED4.6 billion (1.25 billion) in the first nine months of 2024.
Aldar launched three new projects in the third quarter of 2024, Verdes by Haven in Dubai, The Arthouse on Saadiyat Island, and Yas Riva, taking the total number of launches so far this year to eight.
“Aldar’s success has been driven by the UAE’s robust domestic investment climate and its ability to attract international capital and businesses. This favorable environment has enabled us to scale rapidly, balancing the expansion of recurring income streams with record development sales, while strategically reinvesting capital into new opportunities and securing partnerships that will drive further scale and value for both Aldar and Abu Dhabi,” stated Mohamed Khalifa Al Mubarak, chairman of Aldar.
Aldar developments attract overseas customers
By the end of September 2024, Aldar continued to see an expansion in its overseas and expat resident customer base, which now accounts for 76 percent or AED15.3 billion of UAE sales. The group’s increasingly diverse backlog reached a record high of AED48.6 billion and the highest ever UAE backlog of AED40.5 billion, driving revenue recognition over the next 2-3 years.
“In the first nine months of 2024, Aldar has seen remarkable growth across all areas of the business. Our development arm continues to deliver record performance, with international demand driving robust sales across our developments,” stated Talal Al Dhiyebi, group CEO of Aldar.
The company also expanded its landbank to support the future growth of Abu Dhabi. Moreover, it acquired three new sites with London Square in Q3, taking year-to-date site acquisitions in London to 10 plots. “The continued diversification of our investment portfolio is driving significant value creation on the back of strategic acquisitions and strong operational performance in a thriving UAE real estate market,” he added.
Investment revenues surge to AED5 billion
In the first nine months of 2024, Aldar’s investment revenues reached AED5 billion, marking a 24 percent annual increase supported by strategic acquisitions the company made in 2022 and 2023 that are contributing to the bottom line and surpassing expectations.
Further supporting growth is the strategic partnership with Mubadala to own and manage assets worth AED30 billion in Abu Dhabi. This partnership will drive significant scale, diversification, and value for the group.
“An expanding landbank and newly formed strategic partnerships with Mubadala and Expo City Dubai are creating exciting new avenues for growth, enabling us to expand our presence across key segments and geographies. We are extremely confident that we will maintain our current growth trajectory in the coming years and continue unlocking value for our shareholders,” Al Dhiyebi added.
Commercial sector expansion
Aldar also continued to deploy capital to support its develop-to-hold asset pipeline, which now stands at AED9.35 billion across the UAE. In addition, it strengthened its presence in Dubai with the entry into the commercial sector with the six Falak acquisition, a Grade A tower set for development adjacent to DIFC, and the recently announced joint venture with Expo City Dubai.
Aldar also maintained ample liquidity to support its growth agenda with AED9.5 billion in free cash and unrestricted cash, and AED8.4 billion in undrawn committed credit facilities.
As of September 30, 2024, Aldar fully paid down all its secured debt across UAE and U.K. businesses, reinforcing its financial strength and providing increased access to capital for future opportunities. Moody’s also reaffirmed Aldar’s Baa2 credit rating and Aldar Investment Properties’ Baa1 rating, both with a stable outlook in August.
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