Aldar Properties (ALDAR) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue reached AED 10.92 billion, up 73% year-on-year, with EBITDA of AED 3.9 billion (+61% YoY) and net profit of AED 3.3 billion (+57% YoY).

• Growth was driven by robust demand across all real estate asset classes, strong development sales, recurring income from acquisitions, and successful execution of development and investment strategies.

• Overseas and expat buyers accounted for 79% of UAE sales, with international expansion progressing in Egypt and the UK.

• Record development backlog of AED 39 billion, with highest-ever UAE backlog of AED 33.2 billion, ensuring revenue visibility for the next 2-3 years.

• Strategic expansion into Dubai's commercial segment and logistics through new developments, acquisitions, and partnerships.

Financial highlights

• Revenue reached AED 10.92 billion (+73% YoY); EBITDA rose 61% to AED 3.9 billion; net profit increased 57% to AED 3.3 billion.

• Gross profit margin for H1 2024 was 35.3% (down from 42.6% YoY); EBITDA margin at 35-36%.

• Effective tax rate was 4.1% in H1 2024, below the statutory 9% due to depreciation deductions, fair value transition rules, and free zone operations.

• Cash and cash equivalents at period end were AED 9.59 billion, with robust cash collection of AED 4.4 billion in H1.

• Total assets increased to AED 76.19 billion as of 30 June 2024.

Outlook and guidance

• On track to meet full-year 2024 guidance: adjusted EBITDA AED 6.2–6.5 billion, development sales AED 29–31 billion, development EBITDA AED 4.1–4.3 billion, investment EBITDA AED 2.3–2.5 billion.

• Market outlook remains positive with strong demand, population growth, and new launches planned for H2.

• Dubai expected to contribute 20–25% of development earnings over the next 3–5 years, assuming continued land replenishment.

• Continued revenue recognition from existing contract assets and liabilities over the next 2–5 years.

• Capital commitments for projects under development and management total AED 24.95 billion.