Group Q1 2023 Highlights

“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

• 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. 
• 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).

ALDAR INVESTMENT

• 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. EBITDA 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 Investments 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.

ESG Highlights

• 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.