Record development sales and recurring income portfolio delivers 21% increase in revenue to $870 million
Aldar Properties had a successful second quarter in 2023, with its net profit increasing by 52% to $350 million. The company’s record development sales and recurring income portfolio contributed to a 21% rise in revenue, totaling $870 million. For the first half of 2023, Aldar’s net profit reached AED2.1 billion ($570 million), a 38% increase compared to the same period last year, and revenues achieved were AED6.3 billion ($1.72 billion), up by 18%.
Aldar’s success was driven by strong demand from both overseas and resident expat buyers, affirming the appeal of its offerings and Abu Dhabi’s status as a premier investment and lifestyle destination. The company experienced solid organic growth in its recurring income portfolio, with increased leasing activity, higher occupancy, and rental income. Additionally, strategic acquisitions made in 2022, such as Al Fahid Island, joint venture partnerships with Dubai Holding and Mubadala, and investments in schools and residential projects, contributed positively to the company’s bottom line.
The company maintains a healthy liquidity position with AED4.5 billion ($1.23 billion) of free cash and AED5.9 billion ($1.61 billion) of committed undrawn facilities. This financial stability, along with a robust market demand, provides revenue visibility for the coming four years.
In summary, Aldar Properties reported significant growth in net profit and revenue during Q2 2023, driven by record development sales and a thriving recurring income portfolio, supported by strategic acquisitions and investments. The company remains well-positioned for continued success and expansion in the future.