Q2 2024 Aldar Properties PJSC Earnings Call Transcript
Key Points
- Aldar Properties PJSC (ADX:ALDAR) reported a significant year-on-year revenue increase of 73% to AED10.9 billion.
- EBITDA rose by 61% to AED3.9 billion, and net profit increased by 57% to AED3.3 billion.
- Aldar Development recorded strong performance with a revenue backlog reaching a record AED39 billion.
- Aldar Investments saw revenue and adjusted EBITDA growth of 30% and 20% year-on-year, respectively.
- The company maintains a conservative leverage profile with strong liquidity, including AED3.6 billion in free cash and AED7.6 billion in undrawn credit facilities.
- The property development gross margin was lighter than expected, partly due to limited land sales in the first half of the year.
- The hospitality and leisure portfolio experienced a slight decrease in adjusted EBITDA due to a one-off income recognized a year earlier.
- The residential leasing segment within Aldar Investments has shown weaker momentum compared to other parts of the portfolio.
- There is a need for significant refurbishment in the residential portfolio, which is currently dated.
- The company faces competition for land in Dubai, which could impact future land replenishment and development plans.
Hello everyone and welcome to the Aldar Properties H1 2024 financial results call. My name is Emily and I'll be coordinating your call today. (Operator Instructions)
I'll now turn the call over to our host, Chief Financial and Sustainability Officer, Faisal Falaknaz. Please go ahead.
Hello everybody. Thank you all for joining us on this call to discuss Aldar's financial performance for H1 2024.
As the UAE continues to provide a conducted macroeconomic environment for the sector, Aldar has delivered strong year-to-date growth, driven by solid demand across all real estate asset classes. Revenue was up 73% year-on-year at AED10.9 billion, while EBITDA rose 61% to AED3.9 billion and net profit increased 57% year-on-year to AED3.3 billion. Please note that the overall effective tax rate was 4.1% in the first half following introduction of corporate income tax in January.
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