Aldar posts 22% YoY increase in Q1 net profit with record
quarterly development sales of AED 4.5 billion and
strong contributions from recurring income portfolio
Abu Dhabi, UAE: 03 May 2023
Revenue Gross Profit EBITDA Net Profit
Q1 AED 3.1 bn AED 1.3 bn AED 955 mn AED 836 mn
2023 + 14% YoY + 18% YoY + 18% YoY + 22% YoY
Group Q1 2023 Highlights
▪ Cross-platform growth driven by ongoing ▪ Solid performance across Aldar’s diversified
execution of development revenue backlog, investment portfolio driven by a buoyant rental
strong quarterly development sales and rising market and rising occupancy across the
recurring income from investment properties, portfolio, with recent acquisitions performing
reflecting the evolution of Abu Dhabi’s real estate above expectations.
market.
▪ Significant dry powder for disciplined capital
▪ Record quarterly development sales of AED 4.5 deployment to drive earnings growth, build
billion supported by increased demand from scale, and enhance diversification.
overseas and resident expat buyers in the UAE.
▪ Healthy liquidity position with AED 6.1 billion of
▪ Highest ever development revenue backlog of free cash and AED 4.4 billion of committed
AED 18.8 billion providing revenue visibility over undrawn facilities; well placed to capture
the next 2-3 years. attractive growth opportunities.
▪ Expansion of Aldar's strategic landbank through ▪ Aldar leads the way in climate action with the
the acquisition of Al Fahid Island, adding a unique launch of its comprehensive Net Zero Plan
waterfront offering to its development pipeline. outlining its commitment to decarbonize the
business by 2050.
▪ Entry into Dubai real estate market through a joint
venture with Dubai Holding to develop three new ▪ In April, Moody’s reaffirmed Aldar Properties’
communities across 3.5 million sqm of land. Baa2 rating and Aldar Investment Properties’
Baa1 rating with a stable outlook for both,
▪ A joint venture partnership with Mubadala to
reflecting the company’s sizeable development
develop commercial assets in Al Maryah Island,
landbank, diversified recurring income portfolio,
capitalising on the high demand for prime office
strong liquidity position, and prudent approach
spaces in Abu Dhabi’s growing international
to financial management.
finance centre.TALAL AL DHIYEBI
“
GROUP CHIEF EXECUTIVE OFFICER OF ALDAR PROPERTIES
“Aldar has maintained positive momentum in the first quarter of 2023,
reporting a strong set of results against the backdrop of positive economic
fundamentals in the UAE.
During Q1, we launched a variety of new residential concepts in Abu Dhabi that proved
incredibly popular amongst investors locally and overseas. The success of these launches
paved the way for our highest ever quarterly sales of AED 4.5 billion and played a large part
in Aldar’s stellar performance during the first three months of the year. Aldar’s investment
platform continued to grow at pace driven by tenant occupancy of 93% across assets, strong
rental returns, and positive contributions from new acquisitions within the portfolio, particularly
the four office towers at ADGM.
As the UAE continues to broaden its appeal as a business and lifestyle destination, we expect
robust real estate market dynamics to sustain through 2023. Against this backdrop, Aldar will
continue to deploy capital in a disciplined manner across its platforms to drive our
transformational growth agenda.”
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 Development Q1 2023 Q1 2022 % change
AED million
Revenue 1,917 1,777 8%
EBITDA 551 457 20%
Group Sales 4,549 2,191 108%
UAE sales 4,202 1,512 178%
▪ Aldar Development’s Q1 2023 revenue increased 8% YoY to AED 1.9 billion driven by ongoing
execution of the revenue backlog.
▪ Gross profit margin for the first quarter of 2023 stood at 40%, up from 37% in Q1 2022.
▪ EBITDA increased 20% YoY to AED 551 million.
▪ Group sales rose 105% to AED 4.5 billion, Aldar’s highest-ever quarterly sales, driven by strong
demand from a growing base of overseas and resident expat buyers in the UAE.
▪ Group revenue backlog reached a record AED 18.8 billion, providing strong visibility on the group’s
revenue across both the UAE and Egypt with revenue recognition expected over the next 2-3 years.▪ Project management services backlog of AED 62 billion demonstrates the long-term nature of the
franchise.
UAE Operations:
▪ Total sales for Q1 2023 reached a record AED 4.2 billion, up 178% YoY, driven by high demand for
existing inventory and new launches including The Sustainable City, Saadiyat Lagoons, Yas Park
Views, Fay Al Reeman, Reeman Living, and Manarat Living.
▪ Sales from overseas and expat buyers reached a record AED 1.9 billion demonstrating the
continued appeal of Aldar’s growing offering and Abu Dhabi’s emergence as a premier investment
and lifestyle destination.
▪ Revenue backlog of AED 14.7 billion with an average duration of 29 months.
▪ Cash collections for Q1 2023 stood at AED 1.2 billion.
Egypt Operations:
▪ SODIC contributed AED 177 million to Aldar Development’s Q1 2023 revenue, with EBITDA
standing at AED 23 million.1
▪ SODIC’s Q1 2023 sales reached AED 346 million (EGP 2.7 billion).1
▪ Revenue backlog for SODIC reached AED 4.1 billion (EGP 34 billion), with an average duration of
27 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 223 million (EGP 1.9 billion). 2
ALDAR INVESTMENT
Aldar Investment comprises four main segments representing over AED 32 billion of assets under management.
Investment Properties houses Aldar’s core asset management business comprising over AED 24 billion of prime
real estate assets across retail, residential, commercial, and logistics segments. Hospitality and Leisure owns a
AED 4.5 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 managed schools footprint
extending across UAE. Principal Investments includes Provis, the property management business, Khidmah, the
facilities management business, Spark Security Services, and Pivot, a construction services business.
Aldar Investment3 Q1 2023 Q1 2022 % change
AED million
Revenue 1,247 859 45%
Adjusted EBITDA4 536 374 43%
Occupancy (Investment Properties)5 93% 92% -
1 EGP figures stated at the average exchange rate during the quarter (EGP/AED 0.127990)
2 EGP figures stated based on exchange rate as at 31/03/2023 (EGP/AED 0.119)
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 31/03/2023.▪ Aldar Investment’s Q1 2023 revenue reached AED 1.2 billion, representing a 45% YoY growth
while Q1 2023 Adj. EBITDA rose 43% YoY to AED 536 million. The standout performance was
driven by higher occupancy rates, strong rental rates, and significant contributions from new
acquisitions across the portfolio.
▪ The Investment Properties Q1 2023 Adj. EBITDA6 increased 16% YoY to AED 347 million. This
was primarily driven by higher occupancy and rental rates across the portfolio, as well as positive
contributions from new acquisitions. Occupancy across the portfolio rose to 93% compared with
92% for the same period last year.
˗ Residential Q1 2023 Adj. EBITDA declined 11% YoY to AED 95 million, mainly attributed
to the sale of strata units. The overall portfolio showed continued strength as NOI increased
by 2% on a like-for-like basis and occupancy reached 95%. This is due to the excellent
location of its prime residential communities, unwavering focus on delivering high quality,
and enduring commitment to providing an exceptional customer experience.
˗ Retail Q1 2023 Adj. EBITDA held firm at AED 117 million supported by a strong occupancy
rate at 90%. Tenant sales and footfall in Yas Mall rose 30% and 48% respectively.
Meanwhile, the occupancy rate at Yas Mall stood at 99%, representing a 3-percentage
point increase compared to the same period last year.
˗ Commercial Q1 2023 Adj. EBITDA increased 89% YoY to AED 141 million driven primarily
by the successful execution of Aldar’s leasing strategy and the ongoing high demand for
prime Grade A office space in Abu Dhabi. Since the time of acquisition, market leasing rates
at the ADGM office towers have increased by more than 10%, with occupancy rising to 97%
from 79%. Likewise, occupancy at International Tower and HQ Building increased to 91%
and 92% respectively driven by higher leases from both global corporate firms and GREs.
Al Maryah Tower, set to be tenant-ready in August 2023, continues to benefit from the
strong leasing pipeline with the emergence of Grade A commercial pre-leasing market in
Abu Dhabi.
˗ Aldar Logistics recorded a Q1 2023 Adj. EBITDA of AED 13 million. Occupancy across
the logistics portfolio stood at 89%.
˗ In April, Moody’s reaffirmed Aldar Investment Properties’ (AIP) Baa1 rating with stable
outlook citing AIP’s strong market position in Abu Dhabi, AIP’s high quality and diversified
investment property portfolio, and the ongoing recovery and positive real estate market
outlook in Abu Dhabi.
▪ The Hospitality and Leisure business continues to benefit from a busy entertainment, leisure, and
business events calendar and the return of travel and tourism more broadly. Q1 2023 EBITDA
surged 417% YoY to AED 116 million driven by positive contributions from new acquisitions as well
as higher occupancy and average daily rates (ADR). Occupancy across the portfolio stood at 74%,
up from 69% as at the end of Q1 2022. ADR increased to AED 596 across the portfolio, up 65%
compared to the same period last year.
▪ Aldar Education Q1 2023 EBITDA increased 14% YoY to AED 41 million driven by a 25% YoY
increase in enrolments to just under 33,000 students across 27 operated and managed schools, up
from over 26,000 students and 20 schools as at the end of Q1 2022.
▪ The Principal Investments7 witnessed a 96% YoY increase in Q1 2023 EBITDA to AED 32 million
largely driven by contributions from recent acquisitions – which have added considerable scale to
the platform – and significant growth in the value of contracts.
6 EBITDA adjusted for fair value movements (excluding amortization of leasehold assets), reversal of impairments, and one-off gains/losses
on acquisitions.
7 Excluding PivotESG 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 ESG activities this quarter
include:
▪ In January, Aldar launched its Net Zero Plan, with a commitment to becoming a Net Zero carbon
business (“Net Zero”) across its Scope 1, Scope 2, and Scope 3 greenhouse gas (“GHG”) emissions
by 2050. Aldar also set science-aligned 2030 interim targets, which will see it achieve Net Zero in
its Scope 1 and Scope 2 GHG emissions and deliver a 45% reduction in the intensity of its Scope 3
GHG emissions relative to the company’s 2021 baseline.
▪ In February, Aldar and the Ministry of Climate Change and Environment (‘MOCCAE’) launched a
Real Estate Climate Pledge. By signing the Pledge, the signatories will be supporting the UAE’s Net
Zero by 2050 Strategic Initiative through a commitment to publishing their own decarbonisation
targets before COP 28 as well as sharing data and best practices to help improve carbon emissions
and reporting throughout the lifecycle of a real estate asset.
▪ In Q1 2023, Aldar renewed its strategic partnership with Special Olympics UAE until 2025 and
reinforced its long-standing partnership with Emirates Red Crescent by signing a new year-long
agreement to cooperate on humanitarian efforts.
▪ At the end of the first quarter, UAE Nationals represented 41% of Aldar’s head office employees,
with Emiratis now forming 66% of Aldar’s leadership team. Aldar also received awards from NAFIS
during Q1 in recognition of outstanding Emiratisation efforts within the private sector.
-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 Aldar
Aldar 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 32 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. AldarEducation 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 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:

Sentiment: positive