Aldar Announces 24% Increase in H1 Net Profit with 42% Revenue Growth

Image: Aldar

Aldar Properties has announced a significant increase in its net profit after tax, reporting a 24% rise year-on-year to Dhs4.1 billion for the first half of 2025. This growth is attributed to robust development sales, the acknowledgment of an unprecedented revenue backlog, and ongoing expansion within its investment sector.

Revenue for the first half surged by 42% compared to the previous year, reaching Dhs15.5 billion, while gross profit climbed 39% to Dhs5.3 billion.

EBITDA rose 38%, amounting to Dhs5.3 billion, and net profit before tax was at Dhs4.7 billion, reflecting a 35% increase from last year. Earnings per share also rose by 27% to Dhs0.45.

In the second quarter alone, Aldar achieved revenue of Dhs7.7 billion, marking a 46% increase year-on-year, with net profit reaching Dhs2.2 billion, a 25% growth.

Group development sales reached Dhs18.3 billion in the first half of 2025, a 31% year-on-year increase, driven by the launch of five new projects across the UAE and strong interest in existing offerings.

The development backlog achieved a new high of Dhs62.3 billion, including Dhs53.4 billion within the UAE, ensuring significant revenue visibility for the next two to three years.

Sales to international and expatriate clients amounted to Dhs14.7 billion, constituting 84% of total UAE sales during the first half.

In July, Aldar made headlines with the Dhs400 million sale of a mansion at Faya Al Saadiyat, and in May, a residential building in Mamsha Gardens was sold to Hong Kong’s Gaw Capital for Dhs586 million, marking the company’s debut investment in the UAE.

Aldar Development Revenue Experiences 50% Growth in H1

Aldar Development’s revenue rose by 50% year-on-year to Dhs11.3 billion for the first half of 2025, with EBITDA growing by 47% to Dhs3.3 billion.

In Q2, development revenue increased by 54% compared to the same period last year, reaching Dhs5.6 billion as the group continued to capitalize on its revenue backlog.

The project management services backlog reached Dhs86 billion by the end of June, with Dhs56.9 billion currently under construction.

Total sales within the UAE surged to Dhs17.5 billion during the first half of 2025, marking a 35% increase year-on-year, with Q2 contributing Dhs9.0 billion, a 32% rise.

Internationally, SODIC in Egypt brought in Dhs291 million in revenue and Dhs536 million in sales, with a backlog of Dhs6.6 billion. London Square in the UK accounted for Dhs710 million in revenue and Dhs362 million in sales, with a revenue backlog of Dhs2.3 billion from various launches and acquisitions.

Aldar Investment Reports 18% EBITDA Growth

Aldar Investment’s revenue for the first half reached Dhs3.8 billion, reflecting a 16% year-on-year increase, with adjusted EBITDA rising by 18% to Dhs1.6 billion. In the second quarter, revenue rose by 18% to Dhs1.9 billion, while adjusted EBITDA increased by 26% to Dhs789 million.

Total assets under management hit Dhs47 billion, bolstered by strategic acquisitions of both commercial and residential properties in Masdar City.

High occupancy rates and robust rental growth across various asset classes contributed to this performance, with commercial properties achieving 99% occupancy and residential properties at 98%.

Retail EBITDA rose 12% in the first half to Dhs277 million, with Yas Mall boasting 98% occupancy and a footfall increase of 15%.

Logistics EBITDA grew by 14%, reaching Dhs35 million, with further expansion anticipated due to newly acquired ALMARKAZ assets and forthcoming cold storage facilities.

Hospitality occupancy reached 70%, with revenue per available room (RevPAR) increasing by 3% and average daily rate (ADR) rising by 8%. However, EBITDA for hospitality slightly dipped by 4% year-on-year in the first half to Dhs171 million due to property redevelopments.

Aldar Education’s EBITDA grew by 9% to Dhs127 million, with total enrollment numbering 37,000. Additionally, Aldar Estates saw a 24% increase in EBITDA to Dhs192 million, supported by synergies from its comprehensive property and facilities management portfolio.

Strong Financial Position and Liquidity

As of June 30, Aldar reported Dhs12.2 billion in free cash along with Dhs17.5 billion in undrawn banking facilities.

A new Dhs500 million revolving credit facility boosted H1 capital generation to Dhs16.8 billion, with a 27% increase in customer net promoter score (NPS) during Q2.

Aldar received an upgrade to ‘A’ in its MSCI ESG rating and was included in the FTSE4Good Index. The company also met its 2026 Emiratisation target ahead of schedule, with Emiratis making up 44.6% of its workforce.

Environmental milestones include a 30% improvement in energy use intensity and a 24% reduction in embodied carbon, alongside a 96% recycling rate of construction and demolition waste.

Aldar partnered with Emirates Steel to source hydrogen-based rebar for Abu Dhabi’s first net-zero carbon mosque and signed a health-focused master plan for Fahid Island, which secured LEED Platinum pre-certification.

Aldar’s chairman, Mohamed Khalifa Al Mubarak, remarked that the company is strategically positioned to take advantage of the increasing demand for premium real estate, supported by the UAE’s economic environment and its growing international recognition.

Group CEO Talal Al Dhiyebi emphasized that the company aims to enhance its development and investment platforms while ensuring residential launches align with market needs.

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