Abu Dhabi-based Aldar records net profit of Dhs3.1bn in 2022

February 11, 2023 680

Aldar’s group revenue in 2022 rose to Dhs11.2 billion, up 31 per cent year on year

Aldar reported a 35 per cent increase in net profit to Dhs3.1bn for the year ending December 31, 2022.

The company’s revenue in 2022 rose to Dhs11.2bn, up 31 per cent YoY, it said in a statement.

Gross profit for the full year was Dhs4.7bn (up 31 per cent YoY) and earnings before interest, taxes, depreciation and amoritisation (EBITDA) increased 32 per cent YoY to Dhs3.7bn.

The company announced a Q4 2022 net profit of Dhs1bn, up 28 per cent year-on-year (YoY), in a statement. Revenue for Q4 was Dhs 3.1bn.

Aldar Group Development

Aldar’s development business recorded its highest-ever annual development sales, which reached Dhs14.4bn, supported by strong resident and investor demand across existing inventory and new launches in Abu Dhabi and contributions from Egypt.

Group development revenue backlog reached a record Dhs17.6bn, enhancing the platform’s revenue visibility and predictability over the next two to three years to drive further scale, diversification, and earnings growth.

Aldar Investment

Aldar Investment’s revenue reached Dhs4.1 bn for the year, representing a 25 per cent YoY growth while adjusted EBITDA rose 34 per cent YoY to Dhs1.6bn.

Strong contributions from new acquisitions completed during the year, as well as a significant rebound in both the retail and hospitality portfolios underpinned by higher occupancy rates and strong market recovery contributed to the growth.

Mohamed Khalifa Al Mubarak, chairman of Aldar Properties, said, “Aldar’s agenda for transformational growth has advanced at scale and pace in the last year through significant transactions and a number of strategic development projects. In early 2022, the company attracted Dhs5.1bn of long-term institutional capital from Apollo Global Management, setting the tone for the accelerated execution of Aldar’s transformational growth agenda with significant geographic and sector expansion across the platform over the year.”

Talal Al Dhiyebi, group CEO of Aldar Properties, commented, “Our prime investment property portfolio has proven resilient to global disruption and has experienced an increase in capital values, even at a time of rising interest rates and international market softness. Meanwhile, our development business attracted unprecedented demand from overseas buyers, and we have a strong pipeline of new developments, which will attract both local and international investment, including our first communities in Dubai.”

The company recommended a cash dividend of Dhs0.16 per share. 10-year dividend CAGR of 10 per cent. This represents a total dividend payout of Dhs1.3bn in 2022 and Dhs10bn over the last decade.

Aldar Group highlights

  • Dhs11.3bn of acquisitions made over 13 transactions completed in 2022 across logistics, commercial, retail, education, and hospitality sectors, as well as geographic expansion across Abu Dhabi, Dubai, and Ras Al Khaimah.
  • Transformational growth agenda set to accelerate further over the next 12-18 months with Dhs5bn of surplus equity capital earmarked to fund a strong pipeline of value-accretive acquisitions.
  • The Dhs5.1bn Apollo transaction demonstrates the company’s ability to attract foreign institutional capital.
  • The recent joint venture with Dubai Holding marks Aldar’s entry into the lucrative Dubai market, expanding the company’s geographic footprint, enhancing revenue diversification, and increasing its strategic land bank.
  • Aldar recently launched its comprehensive Net Zero Plan.
  • During the year, the company recirculated over Dhs7.6bn in the local economy through the National In-Country Value (ICV) Program, by awarding contracts to local contractors and suppliers.
  • Strong performance across its diversified and recurring income investment portfolio supported by contributions from new acquisitions and a strong recovery in the hospitality and retail portfolios.
  • A strong liquidity position with Dhs6.5bn of free cash and Dhs4bn of committed undrawn facilities, shows the company is well placed to capture growth opportunities.