Aldar Q1 Net Profit Soars 20% to AED 2.3 Billion, Highlighting Resilient Diversification Strategy

Aldar Properties has reported a significant increase in its net profit for the first quarter of 2026, rising 20% year-on-year to AED 2.3 billion. This growth is attributed to the successful realization of development revenue backlog and robust earnings from a diversified portfolio of investment properties. Earnings per share for the period also saw a notable increase of 25%, reaching AED 0.25.

Strong Sales Performance

The company achieved group sales totaling AED 6.7 billion in Q1 2026, with AED 5.9 billion generated from the UAE market. Aldar launched two major projects in the UAE during this quarter: The Wilds Residences in Dubai and Baccarat Residences on Saadiyat Island in Abu Dhabi.

International demand remained strong, with sales to overseas and expatriate residents amounting to AED 5.3 billion, representing 88% of total UAE sales. The launch of Yas Park Place in mid-April further underscored this trend, with 80% of the released units sold, generating over AED 800 million and reflecting ongoing confidence in Abu Dhabi’s real estate market.

Development Revenue Backlog and Landbank Expansion

Aldar’s development revenue backlog has increased to AED 72.1 billion, with AED 62.2 billion attributed to projects in the UAE. This backlog provides clear visibility for revenue recognition over the next three years. Additionally, the company has replenished its landbank across the UAE, which now holds a Gross Development Value of AED 61 billion, including strategic plots in key Abu Dhabi locations and an expansion of the Dubai Holding joint venture.

Aldar Investment reported an 18% year-on-year increase in adjusted EBITDA, reaching AED 905 million, bolstered by high occupancy rates and contributions from strategic acquisitions. The total assets under management have risen to AED 52 billion.

Resilience in Income-Generating Portfolio

The income-generating property portfolio has demonstrated resilience, supported by long-term leases and growth in various segments, including commercial, retail, industrial, and logistics. Recent acquisitions, such as The Link at Masdar City and logistics assets at KEZAD, have further strengthened this platform.

The develop-to-hold pipeline has expanded by AED 2.8 billion, now totaling AED 20.1 billion, through a partnership with the Department of Municipalities and Transport aimed at delivering 9,000 value housing units for rent in Abu Dhabi.

Financial Position and Capital Deployment

Aldar’s strong financial position supports its resilience and capital deployment strategy. As of the end of March, the company reported total available liquidity of AED 33.2 billion, which includes AED 13.9 billion in free and unrestricted cash and AED 19.4 billion in committed undrawn bank facilities.

In January, Aldar completed a USD 1.0 billion (AED 3.7 billion) public hybrid issuance, followed by another USD 1.0 billion issuance to Apollo in February. Additionally, an AED 5 billion sustainability-linked revolving credit facility was finalized in April, attracting significant interest from a diverse group of regional and international banks.

In April, Aldar announced a dividend distribution of AED 0.205 per share for 2025, marking a 10.8% increase year-on-year and a total payout of AED 1.61 billion.

Sector-Specific Insights

Aldar Development

Aldar Development’s revenue grew by 14% year-on-year to AED 6.5 billion, with EBITDA increasing by 23% to AED 2.2 billion, driven by ongoing project deliveries against a record revenue backlog. However, group sales totaled AED 6.7 billion, reflecting a 25% decline year-on-year due to moderated sales activity in March and a disciplined approach to project launches in response to changing market conditions. Customer collections remained strong, aligning with contractual schedules, and default rates have remained stable at around 1%.

UAE Market Overview

In the UAE, total sales decreased by 30% year-on-year to AED 5.9 billion, influenced by moderated launch activity. The two projects launched during the quarter were The Wilds Residences in Dubai and Baccarat Residences in Abu Dhabi. The launch of Yas Park Place in April generated over AED 800 million in sales, with 80% of units sold within the first week.

UAE sales to overseas and expatriate buyers accounted for 88% of total sales in Q1 2026, reaching AED 5.3 billion, indicating sustained international demand and confidence in Abu Dhabi as a global investment hub. The revenue backlog in the UAE stood at a record AED 62.2 billion at the end of March 2026, up from AED 61.0 billion at the end of December, with an average duration of 29 months. Cash collections in Q1 2026 totaled AED 4.3 billion, reflecting strong buyer commitment.

International Contributions

SODIC

SODIC contributed AED 116 million (EGP 1.5 billion) to Aldar Development’s revenue, with total sales amounting to AED 194 million (EGP 2.9 billion). The revenue backlog for SODIC at the end of March 2026 stood at AED 7.2 billion (EGP 107.1 billion), with an average duration of 39 months.

London Square

London Square’s contribution to Aldar Development’s revenue was AED 316 million (GBP 64 million). Sales from London Square totaled AED 576 million (GBP 118 million), driven by three development launches in the first quarter. The revenue backlog rose to AED 2.7 billion (GBP 560 million) at the end of March 2026, with an average duration of 31 months.

Source: www.zawya.com

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Published on 2026-04-28 10:09:00 • By the Editorial Desk