Aldar's Q2 2023 net profit rises 52% driven by record
development sales and strong contributions from its
recurring income portfolio
Abu Dhabi, UAE: 31 July 2023
Revenue Gross Profit EBITDA Net Profit
Q2 AED 3.2 bn AED 1.4 bn AED 1.4 bn AED 1.3 bn
2023 + 21% YoY + 26% YoY + 47% YoY + 52% YoY
H1 AED 6.3 bn AED 2.7 bn AED 2.4 bn AED 2.1 bn
2023
+ 18% YoY + 21% YoY + 34% YoY + 38% YoY
Group H1 2023 Highlights
▪ Cross-platform growth gathers pace fueled by ▪ Notable transactions during H1 2023 include
the execution of development revenue backlog, the acquisitions of Al Fahid Island, as well as
strong quarterly development sales, and the joint venture partnerships with Dubai
growing contributions from the recurring income Holding and Mubadala.
portfolio.
▪ Transactions announced in Q3 2023 include
▪ Record development sales of AED 11.6 billion an AED 350 million investment to establish
with 10 new project launches year-to-date. Cranleigh Bahrain and acquire two
additional schools, Kent College Dubai and
▪ Sustained increase in demand from both
Virginia International Private School, as well
overseas and resident expat buyers
as Aldar Estates’ strategic merger with
underscoring the continued appeal of Aldar’s
Eltizam Asset Management Group.
offering and Abu Dhabi’s status as a premier
investment and lifestyle destination. ▪ In July, Aldar partnered with Abu Dhabi
Housing Authority to develop Balghaiylam,
▪ Strong growth in development revenue backlog
an integrated, sustainable residential
at AED 24.4 billion, driven by robust market
neighborhood in the North Yas area valued
demand providing revenue visibility over the
at AED 8 billion. The project is scheduled to
coming 4 years.
be completed by 2026 and will offer 1,743
▪ Solid organic growth across the recurring homes for UAE Nationals.
income portfolio driven by stronger operating
▪ AED 500 million investment earmarked to
performance, with increased leasing activity,
redefine the retail experience at Al Jimi Mall
higher occupancy, and rental income.
and Al Hamra Mall.
▪ Acquisitions made in 2022 serve as drivers for
▪ Healthy liquidity position with AED 4.5 billion
accelerated growth, yielding strong returns and
of free cash and AED 5.9 billion of committed
positively contributing to the bottom line.
undrawn facilities, providing the dry powder
▪ Ongoing execution of transformational growth to pursue attractive growth opportunities.
strategy with a continued focus on disciplined
▪ Aldar reinforced its commitment to
capital deployment and geographic expansion
sustainability through the issuance of its
outside of Abu Dhabi to unlock new
inaugural USD 500 million green sukuk,
opportunities.
which forms part of a wider USD 2 billion
sukuk programme.H.E. MOHAMED KHALIFA AL MUBARAK
CHAIRMAN OF ALDAR PROPERTIES
“I am pleased to report that Aldar has produced a strong financial
performance in the first half of 2023, driven by effective
implementation of its ambitious growth strategy in the context of
the UAE’s robust macro-economic fundamentals. Solid consumer
and business confidence is supporting domestic demand, which is translating into
strong development sales and high occupancy across the company’s portfolio of prime
assets. This is a direct result of the successful socio-economic reforms enacted by the
UAE government, which have positioned the country as a premier lifestyle, investment
and business destination. Aldar continues to build on its formidable track record,
capitalising on significant opportunities to deliver sustainable value to all our
stakeholders.”
TALAL AL DHIYEBI
“
GROUP CHIEF EXECUTIVE OFFICER OF ALDAR PROPERTIES
“As Aldar continues to pursue its transformational growth agenda,
the company is today operating at a significantly elevated scale
than just a couple of years ago. We achieved 10 new launches in
the first half, more than in full-year 2022, and the investment
business has seamlessly integrated new acquisitions, with the total value of Aldar’s
owned recurring income asset portfolio increasing by almost a third over the last 12
months. Our operating model has proven highly effective at delivering accelerated
growth. We look forward to launching our development franchise into Dubai and Ras
Al Khaimah in the coming months, and deploying further capital to diversify our
investment property platform.”
Business Unit Highlights
ALDAR DEVELOPMENT
This core business unit comprises three main segments: Property Development and Sales, which is responsible
for developing and marketing Aldar’s diverse and strategic land bank located in key investments zones across Abu
Dhabi, Dubai, and Ras Al Khaimah; Project Management Services, which manages Aldar's project management
business, including government housing and infrastructure projects in the UAE; and Egypt, which manages Aldar’s
investment in Egyptian real estate company SODIC.
Aldar Q2 2023 Q2 2022 % change H1 2023 H1 2022 % change
Development
AED million
Revenue 1,969 1,761 12% 3,886 3,537 10%
EBITDA 715 501 43% 1,266 958 32%
Group Sales 7,027 3,119 125% 11,576 5,332 117%UAE sales 6,397 2,497 156% 10,600 4,010 164%
▪ Aldar Development’s Q2 2023 revenue increased 12% YoY to AED 2.0 billion with EBITDA
increasing 43% YoY to AED 715 million. This was driven by construction progress and continued
development backlog revenue recognition. H1 2023 revenue increased 10% to AED 3.9 billion
compared to the same period last year with EBITDA increasing 32% YoY to AED 1.3 billion.
▪ Group sales in Q2 2023 reached a record of AED 7.0 billion, a 125% increase from the same period
last year. Meanwhile, H1 2023 group sales increased 117% YoY to AED 11.6 billion. This marks
Aldar’s highest-ever quarterly and half-yearly sales, driven by a record number of launches and
strong demand from a growing vein of overseas and resident expat buyers in the UAE.
▪ Group revenue backlog reached a record AED 24.4 billion year to date, providing strong visibility
on the group’s revenue across both the UAE and Egypt with revenue recognition expected over the
next 4 years.
▪ Project management services backlog of AED 61 billion demonstrates the long-term and
perpetual nature of the franchise with AED 2.2 billion in new projects awarded year-to-date.
UAE Operations:
▪ Total sales for Q2 2023 reached a record AED 6.4 billion, up 156% YoY, driven by high demand for
existing inventory from Q1 launches as well as new Q2 launches including AlKaser, Reeman Living
2, and The Source 2. H1 2023 UAE sales increased 164% YoY to AED 10.6 billion.
▪ Sales from overseas and expat buyers reached a record AED 3.3 billion in Q2 2023 underscoring
the emergence of Abu Dhabi as a premier investment and lifestyle destination and the success of
Aldar in attracting demand from a diverse range of international investors and expat resident buyers.
Meanwhile, H1 2023 sales from overseas and expat buyers totalled AED 5.2 billion, representing a
four-fold increase compared to H1 2022.
▪ Revenue backlog of AED 19.9 billion, increased 65% year to date with an average duration of 29
months.
▪ Cash collections stood at AED 1.55 billion.
Egypt Operations:
▪ SODIC contributed AED 158 million (EGP 1.3 billion) to Aldar Development’s Q2 2023 revenue, with
EBITDA standing at AED 49 million (EGP 409 billion). SODIC’s H1 2023 revenue stood at AED 335
million (EGP 2.7 billion), with EBITDA reaching AED 72 million (EGP 590 million).1
▪ SODIC’s Q2 2023 sales reached AED 630 million (EGP 5.3 billion) while H1 2023 sales totalled
AED 976 million (EGP 8 billion).1
▪ Revenue backlog for SODIC reached AED 4.5 billion (EGP 37.8 billion), with an average duration
of 25 months, providing strong visibility on revenue over the next 2-3 years.2
▪ SODIC continues to maintain a strong liquidity position with total cash and cash equivalents
amounting to AED 191 million (EGP 1.6 billion).2
ALDAR INVESTMENT
Aldar Investment comprises four main segments representing over AED 33 billion of assets under management.
Investment Properties houses Aldar’s core asset management business comprising over AED 24 billion of prime
1 EGP figures stated at the average exchange rate during each quarter (Q1 2023 EGP/AED: 0.128; Q2 2023 EGP/AED: 0.119)
2 EGP figures stated based on exchange rate as at 30/06/2023 (EGP/AED 0.119)real estate assets across retail, residential, commercial, and logistics segments. Hospitality and Leisure owns a
AED 4 billion portfolio of hotel and leisure assets principally located on Yas Island, Saadiyat Island, and Ras Al
Khaimah. Aldar Education is the leading private education provider in Abu Dhabi with owned and managed schools
footprint extending across UAE. Principal Investments comprises Aldar Estates, the region’s largest integrated
property and facilities management platform offering a comprehensive range of services including property
management, facilities management, advisory, security, and landscaping through its diverse portfolio of businesses,
as well as Pivot, a construction services business, and Cloud, a flexible workspace solutions provider.
Aldar Q2 2023 Q2 2022 % change H1 2023 H1 2022 % change
Investment3
AED million
Revenue 1,244 893 39% 2,491 1,752 42%
Adjusted 499 369 35% 1,036 743 39%
EBITDA4
Occupancy 94% 92% - 94% 92% -
(Investment
Properties)5
▪ Aldar Investment’s Q2 2023 revenue reached AED 1.2 billion, representing a 39% YoY growth
while Q2 2023 Adj. EBITDA rose 35% YoY to AED 499 million. H1 2023 revenue stood at AED 2.5
billion, representing a 42% YoY growth with Adj. EBITDA reaching slightly above AED 1.0 billion.
This growth was mainly driven by contributions from acquisitions in 2022 as well as strong
performance across core real estate assets and a notable rebound of the Hospitality portfolio.
▪ The Investment Properties Q2 2023 Adj. EBITDA6 increased 26% YoY to AED 347 million while
H1 2023 Adj. EBITDA increased 21% YoY to AED 694 million. This was primarily driven by higher
occupancy and rental rates across the portfolio, as well as positive contributions from 2022
acquisitions. Occupancy across the portfolio rose to 94% compared with 92% for the same period
last year.
˗ Residential Q2 2023 Adj. EBITDA was stable at AED 97 million, while H1 2023 Adj.
EBITDA fell 7% YoY to AED 192 million due to the sale of strata units, and increased
investment into the platform. The overall portfolio showed continued strength with a solid
occupancy rate of 95%.
˗ Retail Q2 2023 Adj. EBITDA rose 4% to AED 115 million supported by strong occupancy
rate at 92% compared to 90% for the same period last year. H1 2023 Adj. EBITDA
increased 2% YoY to AED 231 million. Tenant sales and footfall in Yas Mall rose 30% and
36% YoY respectively. Meanwhile, the occupancy rate at Yas Mall stood at 99%,
representing a 4-percentage point increase compared to the same period last year. In July,
Aldar announced an AED 500 million investment plan to redevelop two of its key retail
portfolio assets in the UAE - Al Jimi Mall in Al Ain and Al Hamra Mall in Ras Al Khaimah.
˗ Commercial Q2 2023 Adj. EBITDA increased 147% YoY to AED 140 million, while H1
2023 Adj. EBITDA increased 115% YoY to AED 281 million. This was driven primarily by
stronger operating performance across the portfolio with occupancy at 96%. On the asset
front, HQ and International Towers witnessed strong leasing activity, while Aldar’s four
ADGM office towers have continued to outperform with occupancy at 98%. Continued
3 Excludes Pivot.
4 Aldar Investment EBITDA adjusted for fair value movements (excluding amortization of leasehold assets), reversal of impairments, and one-
off gains/losses on acquisitions.
5 Contracted or leased occupancy as of 30/06/2023.
6 EBITDA adjusted for fair value movements (excluding amortization of leasehold assets), reversal of impairments, and one-off gains/losses
on acquisitions.robust demand for prime offices among GREs and international corporates has also led to
Aldar’s upcoming Al Maryah Tower being 35% pre-leased with tenant handovers expected
in August 2023.
˗ Aldar Logistics recorded H1 2023 Adj. EBITDA of AED 25 million, with occupancy of 89%.
▪ Hospitality and Leisure Q2 2023 EBITDA surged 184% YoY to AED 66 million while H1 2023
EBITDA increased three-fold YoY to AED 181 million. This was driven by positive contributions from
2022 acquisitions, as well as stronger operating performance across the portfolio. On a like-for-like
basis (excluding the 2022 acquisitions), H1 2023 revenue rose 25% while EBITDA increased 153%
YoY. Occupancy across the portfolio stood at 69%, up from 66% as at the end of Q2 2022 with
average daily rates (ADRs) rising 53% across the portfolio.
▪ Aldar Education Q2 2023 EBITDA increased 11% YoY to AED 52 million while H1 2023 EBITDA
increased 12% YoY to AED 93 million driven by a 22% YoY increase in enrolments to just under
33,000 students across 27 operated and managed schools, up from over 27,000 students and 21
schools as at the end of Q2 2022. In July, Aldar Education increased its investment programme by
AED 350 million to AED 1.35 billion with the acquisition of Kent College Dubai and Virginia
International Private School as well as the establishment of Cranleigh Bahrain, which is set to open
in the academic year 2024/2025.
▪ The Principal Investments7 witnessed a 51% YoY increase in Q2 2023 EBITDA to AED 35 million
largely while H1 2023 EBITDA increased 70% YoY to AED 67 million driven by increased
contributions from 2022 acquisitions. This was further supported by the organic growth of the Aldar
Estates platform (mainly Khidmah and Provis).
˗ Aldar Estates H1 2023 EBITDA increased 51% YoY to AED 59 million driven by
meaningful contributions from new acquisitions and organic growth across existing
businesses. During the year, Aldar Estates acquired Basatin Landscaping, and announced
a strategic merger with Eltizam Asset Management Group as part of its drive to add scale,
enhance diversification and broaden the offering and reach of its integrated property and
facilities management platform.
ESG Highlights
As one of the UAE’s leading real estate developers, Aldar has a duty to uphold best practice international ESG
standards. ESG is a core pillar of the company’s long-term growth strategy, with strong governance and
responsible environmental and social impact integrated into its investment processes and business decisions.
Highlights of Aldar’s recent ESG activities include:
▪ During the year, Aldar Investment Properties (AIP) successfully raised USD 500 million through an
inaugural green sukuk which forms part of a wider USD 2 billion sukuk programme. The 10-year
sukuk was priced with a 4.875% coupon rate and is amongst the highest price tightening of any
corporate issuance in 2023. The issuance was four times oversubscribed, attracting a range of local,
regional, and international investors that placed total orders of over USD 2.3 billion. The proceeds
of the sukuk will be used in accordance with Aldar’s Green Finance Framework to finance green
initiatives and acquisitions.
▪ The successful green sukuk issuance has bolstered Aldar's sustainability-linked financing to a total
of AED 3.3 billion.
▪ During Q2, Aldar completed a LEED gap assessment for its existing portfolio with plans to uplift
more than 20 assets to LEED Gold and Platinum standards by H2 2024. The Company is also
introducing green leases across its recurring income portfolio and finalising a tender for an onsite
solar energy generation project to reduce Scope 2-related emissions.
7 Excluding Pivot▪ Aldar and its subsidiaries have made considerable progress in attracting Emirati talent, resulting in
UAE nationals now accounting for 42% of the total workforce. Since the beginning of the year, a total
of 104 Emiratis have been successfully recruited, while 432 Emiratis have been hired since the
announcement of NAFIS.
▪ In Q2 2023, 41 graduate trainees successfully completed the Aldar Graduate Program and have
been confirmed for full-time positions in various departments across Aldar Group. This achievement
reflects Aldar's strong commitment to nurturing and empowering local talent.
▪ Aldar launched a number of initiatives to deliver a positive impact to communities including the
Annual Thrive Scholarship Programme for low-income families, a Worker Wellbeing Programme,
and internships for people of determination.
Market Highlights
The UAE introduced corporate tax from June 1, 2023, which is aligned with the new global minimum corporate tax
from the Organisation for Economic Cooperation and Development (OECD) that aims to combat tax avoidance in a
global economy. The 9% corporate tax reflects the UAE’s determination to remain competitive and business friendly,
especially for SMEs and startups. The Ministry of Finance have since issued multiple clarifications in relation to the
real estate sector.
▪ The Ministry of Finance issued transitional rules to help businesses to transition smoothly from the
pre-implementation period of the Corporate Tax Law to post-implementation. As per these rules,
companies with immovable property, such as land, buildings, and infrastructure assets, recorded on
a historical 'cost basis,' are given relief on gains related to pre-implementation period and have an
option to select the basis of relief, using either a 'time apportionment method' or 'valuation method'.
This allows business groups to determine the most favorable outcome on immovable property
on an asset-by-asset basis, ensuring a fair and transparent approach for assets and liabilities held.
▪ The Ministry clarified that real estate investment income earned from immovable property owned by
foreign or resident individuals, either directly or through a trust, foundation or other vehicle that is
treated as fiscally transparent for Corporate Tax purposes, would not be subject to Corporate Tax.
Moreover, REITs and other qualifying investment funds may benefit from an exemption from
Corporate Tax on income derived from the investment in UAE immovable property, provided that
the relevant conditions are met.
-ENDS-
For further information, please contact:
Media
Obaid Al Yammahi Sarah Abdelbary
Aldar Properties Brunswick
+971 2 810 5555 +971 2 234 4600
aldar@brunswickgroup.com
Investor Relations
Omar Nashaat
Aldar Properties
+971 2 810 5555
About AldarAldar Properties PJSC is the leading real estate developer, investor, and manager in the UAE with a diversified and sustainable
operating model centered around two core businesses: Aldar Development and Aldar Investment.
Aldar Development is a master developer of integrated, liveable, and thriving communities across Abu Dhabi’s most desirable
destinations, including Yas Island, Saadiyat Island, Al Raha, and Reem Island. It is responsible for developing Aldar’s c. 69
million sqm land bank and includes three businesses: Aldar Projects, which is Aldar's dedicated project delivery arm and the
manager of its project management business; Aldar Ventures, which incubates and nurtures new business opportunities and
innovation areas; and Aldar Egypt, the platform focused on developing mixed-use communities in Egypt.
Aldar Investment houses Aldar’s core asset management business comprising over AED 33 billion portfolio of investment
grade and income-generating assets diversified across retail, residential, commercial, hospitality, and logistics segments. Aldar
Investment also manages three core platforms: Aldar Education, Aldar Estates, and Aldar Hospitality and Leisure. Aldar
Education includes Aldar’s entire educational portfolio, with almost 33,000 students across 27 operated and managed schools,
and a growing network of 3,000 educators from over 100 nationalities, offering a wide range of curriculum and ancillary services
such as a Teacher Training Academy. Aldar Estates, the region’s largest integrated property and facilities management
platform, consolidates Aldar’s Retail Operations alongside existing Residential and Commercial real estate operations within
Provis and will further include Community Management under one integrated property management platform. Aldar Hospitality
and Leisure looks after Aldar’s portfolio of hotel and leisure assets, which are anchored around Yas Island and Saadiyat, in
addition to Ras Al Khaimah. It includes Aldar’s portfolio of 13 hotels, comprising over 4,250 hotel keys and managing
operations across golf courses, beach clubs, and marinas.
Aldar’s shares are traded on the Abu Dhabi Securities Exchange (Stock quote: ALDAR:UH), and is a profitable, cash-
generative business that provides recurring revenues, and benefits from a diverse and supportive shareholder base. Aldar
operates according to high standards of corporate governance and is committed to operating a long-term and sustainable
business in order to provide ongoing value for its shareholders.
Aldar is driven by a vision to be a leading real estate developer and manager in the region by playing a key role in the
development of quality, comfortable, desirable destinations that people can live in, work at and visit.
For more information on Aldar please visit www.aldar.com or follow us on:Form for disclosure of the results of the Board of Directors ةرادلإا سلجم عامتجا جئاتن نع حاصفلإا جذومن
meeting
Ref. ALD-LG-GN-23-LTR-00050
Date 31st July 2023 2023 ويلوي 31 خيراتلا
Name of the Listed Company Aldar Properties PJSC ع.م.ش ةيراقعلا رادلا ةكرش ةجردملا ةكرشلا مسا
Date and day of the meeting: Monday, 31st July 2023 2023 ويلوي 31 قفاوملا نينثلإا عامتجلاا مويو خيرات
The starting time of the
03:00 pm. ء اسم 03:00 عامتجلاا ءدب تيقوت
meeting
The ending time of the meeting 03:45 pm. ء اسم 03:45 عامتجلاا ةياهن تيقوت
Number of board members ةرادلإا سلجم ءاضعأ ددع
7 7
present نيرضاحلا
Quorum achieved (%) 100% %100 )%( روضحلا باصن
 Approval of the Financial ةصاخلا ةيلاملا تانايبلا ىلع قيدصتلا 
Statements of Q2/ 2023. .2023 ماع نم يناثلا عبرلاب
Decisions / Resolutions of the
عامتجلاا جئاتنو تارارق
meeting  Consider general business, طاشنب ةلصلا تاذ ةماعلا لئاسملا يف رظنلا 
operational & strategic Items. .ةيجيتارتسلااو ةيليغشتلا اهرومأو ،ةكرشلا
نمحرلادبع متاح دمحم
Authorized Signatory عيقوتلاب لوخملا مسا
Mohammad Hatim Abedalrahman
ةكرشلا ررقم
Designation يفيظولا ىمسملا
Company Secretary
Signature عيقوتلا
Classification : External General PurposeCompany’s Seal ةكرشلا متخ
Classification : External General Purpose

Sentiment: neutral