Aldar Development records highest-ever quarterly sales of Dh2.69 billion in Q3

Aldar Group on Wednesday said its third-quarter gross profit surged 20 per cent to Dh834 million with Aldar Development recording highest-ever quarterly sales of Dh2.69 billion sales.

In a statement, the Abu Dhabi-based conglomerate said the group sustained growth momentum across its well-balanced business driven by another quarter of record development sales and steady recurring income generated by Aldar Investment. Robust financial performance underpinned by an improving operating environment supported by the UAE’s world-leading vaccination programme, recovering market sentiment and pro-growth government policies and initiatives.

Aldar Development’s quarterly sales of Dh2.69 billion is the fifth consecutive quarter of over Dh1 billion of sales, bringing year-to-date total sales to Dh6.14 billion. Revenue backlog reached at record Dh5.86 billion, supporting future revenue visibility.

"The July-September quarter net profit climbed 14 per cent to Dh474 million," according to the group statement.

Talal Al Dhiyebi, group chief executive of Aldar Property, said Aldar’s strong financial and operating performance this year continued into the third quarter, reflecting the company’s ability to sustain growth.

“As post-pandemic recovery gathered momentum, our diversified businesses continued to rebound at pace, with the third quarter delivering Dh2.69 billion in development sales, complemented by solid leasing activity for our retail and commercial investment property portfolios,” he said.

He said Aldar continues to contribute to the economic and social fabric of the UAE. During the first three quarters of this year, our ‘National In Country Value’ programme reinvested Dh1.92 billion locally through contracts awarded to UAE-based partners.

“Furthermore, we have made a commitment to create employment opportunities for 1,000 UAE nationals over the next five years,” he said.

Return of customer confidence

Aldar said the business continues to deliver strong sales on the back of improving macroeconomic conditions, a return of customer confidence and evolving preferences towards high-quality, spacious, and lifestyle-oriented properties.

Aldar Investment’s third-quarter revenue grew four per cent to Dh792 million and net operating income (NOI) increased one per cent to Dh392 million, mainly driven by strong performance by the retail portfolio and ongoing recovery in the hospitality and leisure business. Nine-month NOI was up five per cent at Dh1.17 billion.

Retail portfolio rebounds

The group further said its retail portfolio reported a notable rebound with increases in footfall and sales to near pre-Covid levels. Strong liquidity position with Dh3.6 billion of unrestricted cash and Dh4 billion of undrawn committed facilities to fuel sustainable long-term growth opportunities, the statement said.

“We expect to see operating activities across our commercial and retail assets continue to grow in line with the macroeconomic recovery that is well underway. Aldar continues to seek attractive and value accretive investment opportunities to grow our portfolio of operating assets and we plan to bring more new developments to the market, driven by our expanding client base, including overseas investors,” Al Dhiyebi said.

The Hospitality and Leisure business continues to recover with 128 per cent year-on-year growth in NOI for the nine-month period, driven by prudent cost management. While performance remains impacted by travel restrictions, several important announcements, including the easing of Abu Dhabi border restrictions and exemptions from quarantine travel requirements, are expected to boost activity.

Aldar Education reported a 27 per cent increase in nine-month NOI to Dh124 million, driven by a three per cent increase in student numbers to 26,370, compared to 25,630 in the same period last year.

— muzaffarrizvi@khaleejtimes.com