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The UAE developer Aldar Properties posted a robust 27% increase year-on-year (YoY) in its Q3-2022 net profit to 601 million dirhams ($163.6 million), and said it is looking to activate its extensive land bank to push sales.
Earnings per share (EPS) came in at AED0.064, missing analysts’ mean EPS estimate of AED0.110, according to data compiled by Refinitiv's Eikon.
Group revenue for the quarter rose 30% on year to AED2.71 billion, the developer said in a statement on the Abu Dhabi Securities Exchange on Thursday.
Sales for Aldar Development jumped 46% YoY to AED3.93 billion driven by continued strong demand for existing inventory and new property launches in the UAE as well as robust sales in Egypt. Year-to-date sales stood at AED9.3 billion, surpassing FY2021 total group sales by AED2 billion, it added.
Residential property sales in the UAE has seen a strong momentum, bolstered by stronger demand and increasing buyer activity amid business and social reforms and government stimulus measures. These reforms have led to an increasingly mature asset market and an increased stream of international and resident expatriate buyers. Aldar said with a "busy Q4 events calendar and tourist season now in play", it sees the positive sentiment continuing well into 2023.
Abu Dhabi’s biggest listed developer said it has a projects backlog of AED64.2 billion at the end of Q3 2022, versus AED57.6 billion at the end of Q2 2022, driven by project additions across infrastructure, community buildings, schools, and national housing. The AED64.2 billion backlog is split between active projects (AED35.4 billion) and projects under design (AED28.8 billion), it added.
All segments in Aldar’s investment portfolio, led by the retail, commercial and hospitality segments saw strong performances, it said. New acquisitions are already delivering meaningful contributions in Q3 and are set to accelerate into Q4.
The developer has set AED5 billion of surplus capital to fund acquisitions over the next 9-12 months.
(Reporting by Brinda Darasha; editing by Daniel Luiz)
