Aldar Properties (ALDAR) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue reached AED 10.92 billion, up 73% year-on-year, with EBITDA up 61% to AED 3.9 billion and net profit after tax up 57% to AED 3.32 billion.

• Growth was driven by strong development sales, recurring income from acquisitions, and a record revenue backlog, with overseas and expat buyers accounting for 79% of UAE sales.

• 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 and logistics sectors, including new developments, acquisitions, and a partnership with DP World.

• Strong liquidity position with AED 3.6 billion in free cash and AED 7.6 billion in undrawn credit facilities.

Financial highlights

• Group sales reached AED 14 billion in H1 2024, up 21% year-on-year, with UAE sales at AED 12.9 billion (+22% YoY).

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

• Net profit attributable to equity holders was AED 2.87 billion, with basic and diluted EPS of AED 0.358.

• Cash and cash equivalents at period end were AED 9.59 billion, with group liquidity at AED 17.4 billion (including escrow and undrawn facilities).

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

Outlook and guidance

• FY 2024 guidance: adjusted EBITDA AED 6.2–6.5 billion, development sales AED 29–31 billion, and development EBITDA AED 4.1–4.3 billion.

• Aldar Investment guidance for adjusted EBITDA is AED 2.3–2.5 billion.

• 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.

• Monitoring impact of UAE corporate tax and OECD Pillar Two rules, with further assessment expected in H2 2024.