Aldar Records $3.81 Billion Sales in H1 of 2024

Supported by solid demand for new launches and existing inventory, Aldar Properties on Monday said that the company has witnessed a strong development sales momentum of $3.81 billion in the first six months of this year, which was up 21% y-o-y.

Continued strong demand from overseas and resident expat buyers, accounting for $2.72 billion, or 79%, of the UAE sales in H1 of 2024, the company said in a disclosure with Abu Dhabi Securities Exchange (ADX) this morning.

The company also recorded a backlog of $10.62 billion, and the highest-ever UAE backlog of $9.04 billion, propelling revenue recognition over the next 2-3 years.

“Future growth to be driven continued realisation of backlog supported by substantial pipeline of new project launches, while investment in strategic land bank replenishment laid a solid foundation for further activation,” Aldar Properties said.

The company has also made a strategic entry into Dubai commercial segment through a total commitment of $490 million, with development of an iconic office tower development with a net leasable area of 88,000 sq m on Sheikh Zayed Road and acquisition of ‘6 Falak,’ a newly built Grade A office building located in Dubai Internet City.

The strong investment portfolio performance was driven by high occupancy levels – particularly on the commercial portfolio – underpinned by favourable market conditions and meaningful contributions from prior-year acquisitions.

The company entered into a strategic partnership with DP World to develop a logistics park in Dubai. This forms part of the previously announced $272 million investment commitment towards logistics assets.

Debt Structure

Aldar has optimised debt structure through the issuance of a second $500 million green sukuk, achieving Aldar’s tightest ever credit spread, and the tender buyback of 2025 sukuk.

The company has ample liquidity to support growth agenda with $980 million in free cash, $2.07 billion in undrawn committed credit facilities, and $1.69 billion in unrestricted escrow accounts.

Aldar properties Chairman Mohamed Khalifa Al Mubarak said that the UAE real estate market continues to display solid fundamentals driven by strong end-user demand and increasing global investor interest, and this was reflected in Aldar’s strong financial and operational performance in the first six months of 2024.

Underpinning this strength has been the dynamism of the UAE economy and through its pro-growth policies and a business-friendly environment, the UAE has emerged as a premier destination for international corporates, entrepreneurs and capital, he said.

Aldar is integral to the country’s development, providing exceptional lifestyle destinations and building the commercial and logistics infrastructure needed to cater to the growing demand. “Leveraging its financial strength and technical expertise, Aldar is committed to remaining at the forefront of the UAE’s sustainable economic transformation and capitalising on the attractive market opportunities to drive long term sustainable growth for our shareholders and stakeholders,” he added.

Aldar Group CEO Talal Al Dhiyebi said that the company’s exceptional performance in the first half of 2024 highlighted their effective and diversified business model, strong brand, and a positive operating environment in the UAE.

“With 79% of our UAE residential sales coming from overseas and expats buyers, we are experiencing a significant expansion of our customer base and benefiting from the country’s appeal to international investors. At the same time, our investment portfolio is thriving amid favourable economic conditions and driven by strategic acquisitions over the last couple of years,” he added.