Aldar Properties (ALDAR) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 reached AED 16.5 billion, up 69% year-over-year, with EBITDA at AED 5.4 billion (+55% YoY) and net profit at AED 4.6 billion (+52% YoY).

• Group sales totaled AED 24 billion (+24% YoY), with a backlog of AED 48.6 billion, reflecting strong development momentum and recurring income growth.

• Strategic partnerships, including with Mubadala, and expansion into Dubai and London diversified the business and supported growth.

• Robust liquidity position with AED 9.5 billion in free cash and AED 8.4 billion in undrawn credit facilities.

• Major acquisitions in education, landscaping, property management, and UK real estate development marked the period.

Financial highlights

• Q3 2024 revenue was AED 5.6 billion (+61% YoY); 9M 2024 revenue at AED 16.5 billion (+69% YoY); EBITDA at AED 5.4 billion (+55% YoY); net profit at AED 4.6 billion (+52% YoY).

• Gross profit for 9M 2024 was AED 5.7 billion, up 42% YoY; gross margin at 34% (down from 41% YoY); EBITDA margin at 33% (down from 36% YoY).

• Basic and diluted EPS for the period was AED 0.493, compared to AED 0.336 last year.

• Cash and cash equivalents at period end were AED 9.28 billion, up from AED 4.96 billion at year-end 2023.

• Effective tax rate for 9M 2024 stood at 3.9% following the introduction of UAE corporate income tax.

Outlook and guidance

• FY 2024 adjusted EBITDA guidance raised to AED 6.8–7.0 billion (from AED 6.2–6.5 billion); sales guidance unchanged at AED 29–31 billion.

• Development EBITDA guidance increased to AED 4.3–4.5 billion; investment adjusted EBITDA to AED 2.5–2.7 billion.

• Expecting at least 35% year-over-year growth in group adjusted EBITDA for 2025.

• Revenue backlog and project pipeline provide strong visibility for the next 2–3 years.

• Monitoring implementation of UAE corporate tax and international Pillar Two tax rules, with further guidance expected in Q4 2024.