The house indicates, in a press release, to have achieved record sales of 4.5 billion dirhams (about 1.23 billion dollars) in the first quarter of 2023, representing a growth of 108%, compared to sales of 2.2 billion. of dirhams that the group had recorded during the first quarter. same period a year ago.
For his part, Talal Al Dhiyebi, CEO of Aldar Real Estate Group, said that Aldar maintained its positive growth momentum during the first quarter of 2023, as it recorded strong financial results supported by the positive economic scene. in the UAE.
Al Dhiyebi explained that during the first quarter of this year, a number of new residential projects were launched in Abu Dhabi, which received strong demand from local and international investors, indicating that the success of these launches opened the way to record the highest quarterly sales. in our history, worth 4.5 billion dirhams, to which the exceptional performance of the house during the first three months of the year largely contributed.
He went on to say: The Aldar Investment platform has grown at an accelerated pace, driven by strong 93% occupancy across various assets, strong rental returns, as well as strong contributions from new acquisitions across the portfolio, in particular the four commercial towers in the Abu Dhabi global market.
He also underlined that the UAE will continue to strengthen its attractiveness as a preferred destination for business and modern lifestyles, expecting the strong performance of the real estate market to continue in 2023.
The group’s most significant financial results for the first quarter of 2023
Growth on the Aldar platform is attributed to revenue generated by the continued implementation and completion of the development project backlog, record quarterly sales and strong recurring income from investment properties, which reflects the booming real estate market in Abu Dhabi. Strong performance across Aldar’s diversified investment portfolio, driven by a strong rental market and increased occupancy rates across the portfolio, and performance that exceeded expectations with recent acquisitions. Record development sales for the quarter of AED 4.5 billion, driven by increased demand from international and UAE-based buyers. A solid list of acquisitions and development projects underway and underway, and plans to make significant capital investments to drive earnings growth, expand the business and increase portfolio diversification. A record level of cumulative revenue for development projects amounting to AED 18.8 billion, heralding revenue growth over the next two to three years. Good levels of liquidity with unrestricted cash balances of AED6.1 billion in addition to unused bank facilities of AED4.4 billion; This increases its growth opportunities. Expansion of Aldar’s strategic stock of land through the acquisition of Al Fahad Island, which adds unique land options overlooking the waterfront that can be developed in the future. Entered the Dubai real estate market through a joint venture with Dubai Holding to develop three residential complexes with a total area of ​​3.5 million square meters. Joint venture partnership with Mubadala to develop retail assets on Al Maryah Island to meet the strong demand for quality office space on the island as it grows in importance as a financial center internationally in Abu Dhabi. Aldar takes the lead in climate action by launching its global plan to achieve net zero emissions which outlines its commitment to decarbonize its business by 2050. In April, Moody’s affirmed Aldar Properties’ Baa2 rating and Aldar’s rating of Aldar Investment Properties. with stable prospects for both companies.
These ratings reflect Aldar’s strong position and large portfolio of developable land, diversified portfolio of recurring revenues, as well as Aldar’s strong liquidity and prudent approach to financial management.
business unit performance:
Aldar Development Company’s revenues in the first quarter of 2023 increased by 8% year-on-year, to reach 1.9 billion dirhams, thanks to the continued collection of accumulated revenues. Gross profit margin reached 40% in the first quarter of 2023, up 37% compared to the first quarter of 2022. EBITDA increased by 20% year-on-year to reach AED551 million. Group sales increased by 105% to reach AED4.5 billion, the highest quarterly sales ever recorded by Aldar, driven by strong demand from its growing base of international and UAE-based buyers. The group’s cumulative revenues amounted to 18.8 billion dirhams, which announces the growth of the group’s revenues in the United Arab Emirates and Egypt over the next two to three years. The cumulative value of project management services of AED62 billion demonstrates the long-term nature of the franchise. Total home sales in the UAE for the first quarter of 2023 hit a record high of MAD 4.2 billion, a 178% year-on-year increase, driven by strong demand for existing stocks and new launches including The Sustainable City, Saadiyat Lagoons, Yas Park Views and Al-Raiman Fay’, Al-Raiman Living and Manarat Living.
operations in the UAE
• Sales to international and expatriate customers reached a record high of AED 1.9 billion, confirming the continued attractiveness of Aldar’s growing offering and the emergence of Abu Dhabi as an investment destination and leading lifestyle. • Cumulative revenue increased to AED14.7 billion with an average period of 29 years. • Inflows reached AED 1.2 billion for the first quarter of 2023.
Operations in Egypt:
• SODIC contributed 177 million dirhams to Aldar Development’s revenues in the first quarter of 2023, its earnings before interest, taxes, depreciation and amortization amounting to 23 million dirhams. • SODIC’s sales amounted to 346 million dirhams (2.7 billion Egyptian pounds) for the first quarter of 2023. SODIC’s cumulative revenues amounted to 4.1 billion dirhams (34 billion Egyptian pounds) , with an average term of 27 months, which heralds the company’s revenue growth over the next two to three years 2. SODIC continues to maintain a strong liquidity position with a total balance of cash and cash equivalents AED 223 million (EGP 1.9 billion).
Aldar investment:
Aldar Investments’ Q1 2023 revenue reached AED1.2 billion, growing 45% year-on-year, while Adjusted EBITDA increased 43% year-on-year to AED536 million AED. This solid performance was supported by higher occupancy rates, high rental rates and significant contributions from new acquisitions at the portfolio level. The adjusted EBITDA of the investment property portfolio in the first quarter of 2023 increased by 16% year-on-year to reach AED 347 million, and this growth was mainly supported by higher occupancy and rental rates at the level of the portfolio, in addition to the positive impact of new acquisitions .
The occupancy rate of the entire portfolio also increased to 93%, compared to 92% in the first quarter of 2022.
Residential Property Adjusted EBITDA in the first quarter of 2023 decreased by 11% year-on-year to AED 95 million, mainly due to the sale of residential unit shares. The residential real estate portfolio continued its strong performance in general, with net operating income increasing by 2% compared to the same period last year, and the occupancy rate reaching 95%. This is due to the excellent location of its main residential complexes, its focus on providing high quality and its commitment to providing an exceptional customer experience.
Retail Assets Adjusted EBITDA during the first quarter of 2023 remained stable at AED 117 million, supported by a high 90% occupancy rate. Tenant footfall and sales at Yas Mall increased by 30% and 48%, respectively. Yas Mall recorded an occupancy rate of 99%, an increase of 3% compared to the same period last year.
Commercial Properties Adjusted EBITDA in the first quarter of 2023 increased by 89% year-on-year to reach AED141 million, mainly driven by the successful implementation of Aldar’s leasing strategy and growing demand for quality office space in Abu Dhabi.
Since the acquisition, rental rates for ADGM’s office towers have increased by more than 10%, while the occupancy rate has increased from 79% to 97%.
On a comparable basis, the occupancy rate of the International Tower and the HQ Building increased by 91% and 92%, respectively, thanks to the increase in rental contracts from international companies and government institutions. Al Maryah Tower, which is expected to receive its first tenants in August 2023, continues to benefit from strong future rental demand with the emergence of the pre-letting market for high-quality office space in Abu Dhabi.
Adjusted EBITDA for the Aldar Asset Logistics business unit in the first quarter of 2023 was AED 13 million, with occupancy across the portfolio reaching 89%.
In April, Moody’s affirmed Al Dar Investment Properties’ rating in the Baa1 category with a stable outlook, reflecting the company’s strong position in the Abu Dhabi market, its diversified and high-quality investment portfolio, as well as that the recovery continues and the positive outlook for Abu Dhabi. Dubai real estate market.
The hospitality and entertainment sector continues to benefit from the continued boom in the travel and tourism sector, which is characterized by a rich calendar of leisure, entertainment and business events. EBITDA increased during the first quarter of 2023 by 417% year-on-year to reach MAD 116 million, and this growth was attributed to the positive impact of new acquisitions, the increase in the occupancy rate and the tariff average daily. Occupancy across the hospitality and leisure portfolio was 74%, compared to 69% at the end of the first quarter of 2022.
The average daily rate rose to 596 dirhams across the entire portfolio, an increase of 65% compared to the same period last year.
Earnings before interest, taxes, depreciation and amortization of Al Dar Education during the first quarter of 2023 increased by 14% year-on-year, reaching 41 million dirhams.33,000 students in 27 schools operated and managed by Al Dar Education , compared to 26,000 students in 20 schools at the end of the first quarter of 2022. The main investing activities in the first quarter of the year saw a 96% year-on-year increase in EBITDA to reach 32 million dirhams. This is mainly due to the contribution of recent acquisitions and the significant growth in the value of contracts.
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