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 net profit after tax rising 52% to AED 4.6 billion and EBITDA at AED 5.4 billion, driven by record development sales, recurring income, and strategic acquisitions.

• Group sales totaled AED 24 billion, up 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, Egypt, and the UK 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.

• Total assets reached AED 80.95 billion, with total equity at AED 40.94 billion as of September 2024.

Financial highlights

• Group revenue rose 69% YoY to AED 16.5 billion for 9M 2024; Q3 revenue was AED 5.6 billion, up 61% YoY.

• EBITDA increased 55% to AED 5.4 billion; net profit up 52% to AED 4.6 billion, with a 3.9% effective tax rate.

• Group sales reached AED 24 billion, up 24% YoY; UAE sales accounted for AED 20.2 billion, up 19% YoY.

• Gross profit margin declined to 34% (from 41% YoY); net profit margin was 27.7%.

• Cash collections for 9M 2024 were AED 7.2 billion; cash and cash equivalents at period end were AED 9.28 billion.

Outlook and guidance

• FY 2024 adjusted EBITDA guidance raised to AED 6.8–7 billion (from AED 6.2–6.5 billion); development sales guidance unchanged at AED 29–31 billion.

• Development EBITDA guidance increased to AED 4.3–4.5 billion; Aldar Investment to AED 2.5–2.7 billion.

• Expecting at least 35% YoY growth in group adjusted EBITDA for 2025.

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

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