Aldar first half net profit after tax rises 24% to $1.11bn

31/07/2025 02:14 AST

Aldar, a leading developer in the region, has reported a 35% increase in first half 2025 net profit before tax compared to the same period last year to AED4.7 billion ($1.28 billion).

Net profit after tax rose 24% YoY to AED4.1 billion ($1.116 billion). Earnings per share grew 27% YoY to AED0.45 in H1 on the back of cross-platform earnings growth.

Strong group development sales of AED18.3 billion in H1, up 31% YoY, was due to high demand for existing inventory and five new UAE launches: two projects on Fahid Island, Waldorf Astoria Residences Yas, Manarat Living III and The Wilds in Dubai.

Other highlights:

* Development backlog rose to a record AED62.3 billion ($16.96 billion), including AED53.4 billion in UAE, driving revenue recognition over next 2-3 years.

? Sustained appeal among international buyers, with UAE sales to overseas and expat resident customers reaching AED14.7 billion, 84% of total H1 UAE sales.

? Record AED400 million sale of a mansion at Faya Al Saadiyat in July reflecting appeal of Abu Dhabi's luxury segment and increased investment among UHNWIs.

? A residential building in Mamsha Gardens sold to Hong Kong private equity firm GAW Capital for AED586 million, illustrating growing global institutional investment in UAE real estate sector.

? Positive market conditions, high occupancy levels, and elevated rental rates drove an 18% YoY increase in Aldar Investment's adjusted EBITDA to AED1.6 billion in H1, with assets under management reaching AED47 billion.

? Commercial and residential assets in Masdar City acquired through the Mubadala partnership made a significant contribution, delivering on the strategic aim to further scale and diversify across the investment properties portfolio.

? The logistics platform was expanded through the AED530 million acquisition of high-quality, income generating warehousing and light industrial assets in Almarkaz Industrial Park in Abu Dhabi.

? Further expansion of Aldar Education's high-quality school offering through a strategic partnership with King's College School Wimbledon to establish a super-premium K-12 campus on Fahid Island.

? Progress in sustainability reflected in an MSCI ESG rating upgrade to 'A' from 'BBB', and inclusion in the FTSE4Good Index Series.

? Strong liquidity position supports prudent growth agenda with AED12.2 billion in free and unrestricted cash, and AED17.5 billion in committed undrawn bank facilities as at end of June.

Mohamed Khalifa Al Mubarak, Chairman, Aldar, said: "Aldar delivered exceptional first-half earnings growth driven by the continued strength of our diversified business model and disciplined strategy execution. This performance comes against a backdrop of positive macroeconomic fundamentals, underpinned by the UAE's strong fiscal position and sustained investment across key sectors.

"The UAE's rising population and its growing appeal as a global centre for business, talent, and lifestyle are driving significant demand for high-quality real estate - propelling our H1 development sales to AED18.3 billion and backlog to a record AED62.3 billion.

"Aldar is well-positioned to capitalise on this heightened demand through the accelerated growth of our development and investment platforms, which play a significant role in advancing the UAE's sustainable urban and economic progress."

Talal Al Dhiyebi, Group Chief executive Officer of Aldar, said: "Aldar delivered strong momentum in the first half of 2025, with a 24% year-on-year increase in net profit to AED4.1 billion, driven by strong development sales and continued expansion of our investment properties portfolio, underpinned by disciplined capital deployment.

"Our development business recorded high demand across existing inventory and launches, with standout sales at flagship projects in Abu Dhabi and Dubai. Aldar Investment continues to deliver solid income growth, supported by high occupancy, rising rental rates, and recent acquisitions. We continue to scale and diversify the platform through expansion in the core sectors of retail, residential, hospitality, commercial and logistics.

Our focus remains on delivering our substantial develop-to-hold pipeline, while maintaining a steady pace of residential launches aligned to market demand."

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