Aldar achieves record annual property sales of AED 7.2 billion and reports preliminary full year net profit increase of 21% for 2021
Abu Dhabi – UAE, 09 February 2022
- Net profit increase of 21% year-on-year, reaching AED 2.33 billion, supported by strong performance across the group businesses
- Record sales of AED 7.2 billion supported by successful new project launches across varied price points (sales up 100% year-on-year)
- Significant ramp-up of development fee-based business (total project back log of AED 41.1 billion), with over AED 6.9 billion of capex deployed in 2021
- Strong balance sheet and undrawn facilities with liquidity of AED 9.0 billion providing significant dry powder for growth
Note: All figures are both unaudited and preliminary for Aldar Properties PJSC, excluding the financial impact of Sixth of October Development and Investment Company (EGX ticker symbol OCDI; SODIC). Due to the timing of the SODIC acquisition, these preliminary results for Aldar Properties PJSC exclude the financial impact from the consolidation of SODIC that closed on December 15, 2021. Aldar’s full year audited financial results, which will be consolidated and include SODIC figures, will be published in March 2022.
Aldar Properties (Aldar) today announced its preliminary financial results for the full year of 2021, reporting revenues of AED 8.58 billion, up 2% year-on-year, a gross profit of AED 3.60 billion, up 21% year-on-year, and a net profit of AED 2.33 billion, up 21% year-on-year, highlighting the resilience of Aldar’s diversified business model. Aldar also reported earnings per share of AED 0.295, up 20% year-on-year, demonstrating sustainable growth of shareholder value. Aldar’s robust financial results were driven by the strong performance of the Aldar Development business and growth in Aldar Investment’s recurring income portfolio. Aldar Development also reported its highest-ever revenue backlog of AED 5.9 billion, supporting visibility and predictability of future revenue, along with the steady ramp-up of the fee-based business with projects backlog of AED 41.1 billion. Aldar Investment’s resilient performance was driven by strong rental rates and leasing activity across the portfolio, which ended the year at 93% 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% occupancy.
Commenting on the results, H.E. Mohamed Al Mubarak, Chairman of Aldar Properties, 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.”
Talal Al Dhiyebi
Group Chief Executive Officer of Aldar Properties“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. The solid performance and corporate initiatives executed throughout 2021 have enabled us to carry forward our 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. 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.”
Aldar Development, Abu Dhabi’s leading property development company, reported sales of AED 1.1 billion in Q4, bringing the full year total sales to a record figure of AED 7.2 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% of Aldar’s sales, up 32% from the previous year. Yas Island remains a key priority, with developments on the island accounting for 62% of the total value of sales throughout 2021. Aldar Project’s fee-based business delivered strong results, with a continued ramp-up throughout the year. A total of AED 6.9 billion in capex was spent in 2021, resulting in a remaining backlog of projects worth AED 41.1 billion. The last quarter of 2021 also saw an Aldar-led consortium acquire an 85.52% stake in one of Egypt’s leading listed real estate development companies, Sixth of October Development and Investment Company (SODIC). This acquisition is part of Aldar’s overall expansion strategy into the Egyptian real estate market. The consortium will now pursue its objective to advance SODIC’s position as a leading national developer by scale and reputation, growing its portfolio of mixed-use residential communities in Greater Cairo, the North Coast and other major markets.