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Aldar net profit surges 21pc to $603m, revenue up 2pc

ABU DHABI, February 9, 2022

UAE-based Aldar Properties has registered a AED2.33 billion ($603 million) net profit for 2021, up 21 per cent year-on-year, mainly driven by the strong performance of Aldar Investment’s recurring income portfolio.
 
Announcing the results for 2021, Aldar said its gross profit rose to AED3.6 billion, while its revenues surged to AED8.58 billion, highlighting the resilience of Aldar’s diversified business model.
 
The Abu Dhabi developer also reported a earnings per share of AED0.295, up 20 per cent year-on-year, demonstrating sustainable growth of shareholder value.
 
Its robust financial results were driven by the strong performance of the Aldar Development business and growth in Aldar Investment’s recurring income portfolio, it stated. 
 
Aldar Development also reported its highest-ever revenue backlog of AED5.9 billion, supporting visibility and predictability of future revenue, along with the steady ramp-up of the fee-based business with projects backlog of AED41.1 billion.
 
Aldar Investment’s resilient performance was driven by strong rental rates and leasing activity across the portfolio, which ended the year at 93 percent occupancy.
 
This was primarily driven by Yas Mall, Abu Dhabi’s dominant super regional mall, which is benefitting from a successful redevelopment and repositioning plan, ending the year at 97 percent occupancy.
 
On the results, Chairman Mohamed Al Mubarak said: "Aldar’s robust performance in 2021 represents a resilient business that is diversifying and transforming at pace, and highlights Abu Dhabi’s appeal as a premier global investment destination."
 
"Confidence in the emirate’s real estate market continues to strengthen as a result of the successful economic and social reforms implemented by the Abu Dhabi Government and was demonstrated by the sell-out launches that delivered Aldar’s highest-ever annual development sales. With Aldar’s new operating model introduced during 2021, our future growth will be underpinned by geographic and business diversification, strategic investments, and acquisitions in core sectors. Our focus on sustainability, digital transformation, and talent will ensure continued growth and delivery of increased shareholder value," he stated.
 
Group CEO Talal Al Dhiyebi said: "With the economic rebound gathering momentum throughout 2021, Aldar not only delivered an excellent set of financial results, but also invested in diversifying and futureproofing our business with strategic acquisitions, a strengthened development pipeline, and a first international market entry."
 
"Our development business’ annual sales record and strong revenue backlog coupled with the robust occupancy performance and leasing growth across Aldar Investment’s portfolio demonstrates the resilience of our diversified business and strong execution capabilities," he stated.
 
Al Dhiyebi said the solid performance and corporate initiatives executed throughout 2021 have enabled Aldar to carry forward its strong momentum into 2022.
 
"Already, we have completed an initial entry to Ras Al Khaimah, a substantial investment in our education business, and introduced a range of new sustainability initiatives that are positive for our business and the environment," he noted.
 
"Looking ahead, we are ready to finalise landmark transactions, deploy capital efficiently in new opportunities, and execute on our transformational growth strategy across geographies, businesses and sectors," he added.
 
The Emirati group's other key unit, Aldar Development, has reported sales of AED1.1 billion in Q4, bringing the full year total sales to a record figure of AED7.2 billion.
 
Major project launches including multiple phases of Noya and Yas Acres, Al Gurm and the third phase of Saadiyat Reserve, were the primary drivers behind this highest-ever sales figure. Sales were supported by a broadening customer profile, with an increasing number of younger and female buyers purchasing properties in Abu Dhabi.
 
The overseas and resident expat customer segment showed strong demand throughout the year, representing 44 percent of Aldar’s sales, up 32 per cent from the previous year.
 
Yas Island remains a key priority, with developments on the island accounting for 62 percent of the total value of sales throughout 2021, it added.-TradeArabia News Service



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