Mashable: The Abu Dhabi-based business conglomerate’s revenues surge 31% to Dh11.2 billion on strong operational performance

Aldar on Thursday announced that its annual net profit for 2022 surged 35 per cent to Dh3.1 billion while revenues soared 31 per cent to Dh11.2 billion as the UAE economy is demonstrating remarkable stability despite global economic headwinds.

In a statement, the Abu Dhabi-based business conglomerate delivered record net profits and attributed it to strong operational performance and significant capital development of the group. It also reported 31 per cent year-on-year growth in gross profit to Dh4.7 billion.

The group also registered 28 per cent year-on-year growth in net profit to Dh1 billion during the fourth quarter while revenues climbed 39 per cent to Dh3.1 billion during the period.

 
Focus on acquisitions

In 2022, Aldar also completed over 13 transactions worth Dh11.3 billion across logistics, commercial, retail, education, and hospitality sectors, as well as geographic expansion across Abu Dhabi, Dubai, and Ras Al Khaimah. It said transformational growth agenda is set to accelerate further over the next 12-18 months with Dh5 billion of surplus equity capital earmarked to fund a strong pipeline of value-accretive acquisitions.

The UAE economy is demonstrating remarkable stability in the face of global economic headwinds, with the country forging a confident path as a premier investment, business, and lifestyle destination. Against this backdrop, real estate market fundamentals remain robust, underpinning Aldar’s bold steps to play a pivotal role in the sustainable development of the sector and the wider economy,” said Mohamed Khalifa Al Mubarak, chairman of Aldar Properties.

He 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 Dh5.1 billion 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,” he said.

Importantly, he said Aldar’s rapid growth is matched by an unwavering commitment to sustainability.

“We have recently launched a detailed Net Zero roadmap, which is one of the most comprehensive plans to de-carbonise a business of scale in our region. The company is focused on delivering strong financial performance, while driving fundamental change through its operations, supply chains and communities to create lasting value for its diverse stakeholders,” he said.

The group, which recently announced a joint venture with Dubai Holding to enter Dubai market, said Aldar’s development business recorded the highest-ever annual group development sales of Dh14.4 billion driven 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 Dh17.6 billion, enhancing the platform’s revenue visibility and predictability over the next 2-3 years to drive further scale, diversification, and earnings growth,” according to the statement.

It further said total UAE sales rose 52 per cent year-on-year basis to a record Dh11 billion due to strong demand for existing inventory and a record nine new individual developments launched in the UAE including Louvre Residences Abu Dhabi, Grove Views, Saadiyat Lagoons, Yas Golf Collection, Yas Park Gate, Yas Park Views, Yas Acres North Bay, Fay Alreeman and Reflection.

“Sales from overseas customers reached a record Dh1.8 billion demonstrating the continued appeal of Aldar’s growing offering and the elevated demand from international end-users and investors,” the statement said.

New phase of growth

Talal Al Dhiyebi, group chief executive officer of Aldar, said the Aldar has entered a new phase of growth that has driven record financial results in 2022 and reinforced the company’s status as a major force in the regional real estate sector.

“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. 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,” he said.

Al Dhiyebi said the accelerated growth of our business coupled with prudent financial management is creating sustainable value for our shareholders.

“We are in a unique position whereby we have progressively increased dividends over the past decade, while continuing to invest significantly for long term growth and concurrently maintaining conservative leverage,” he said.

Strong liquidity position

Aldar has a strong liquidity position with Dh6.5 billion of free cash and Dh4 billion of committed undrawn facilities and this is well placed to capture attractive growth opportunities.

It recommended dividend of Dh0.16 per share; 10-year dividend CAGR of 10 per cent demonstrates Aldar’s solid track record of delivering long-term and sustainable shareholder value through continued investment-led growth and cash returns. This represents a total dividend payout of Dh1.3 billion in 2022 and Dh10 billion over the last decade.

“The year ahead will see our financial strength position us well to capitalise on our growing opportunity set. We will continue to deploy substantial capital in a disciplined manner to scale our platform across a diversified range of real estate asset classes,” he said.