Record sales drive 22% profit growth at Aldar:Aldar Properties reported a 22% increase in net profit in 1Q 2023 on the back of rising demand in its domestic market, according to its earnings release (pdf) out on Wednesday. The Abu Dhabi-based real estate developer’s bottom line hit AED 836 mn in the January-March quarter, driven by a 14% increase in revenues which hit AED 3.1 bn.

Record quarterly sales: Aldar reported a record AED 4.5 bn in sales during the quarter, fuelled by stronger demand among overseas and resident expats. Meanwhile, revenues at the company’s investment arm rose 45% to AED 1.25 bn on the back of rising occupancy rates, higher rental rates, and new acquisitions.

Backlog at all-time high: The company’s backlog hit a record AED 18.8 bn in 1Q, which it said will provide “revenue visibility over the next 2-3 years.”

What they said: Aldar CEO Talal Al Dhiyebi put the strong sales figures down to the company’s new launches in Abu Dhabi. “The success of these launches paved the way for our highest ever quarterly sales of AED 4.5 bn, and played a large part in Aldar’s stellar performance during the first three months of the year,” he said.

Aldar is committed to being a “long-term strategic investor in Egypt,” the company said in a disclosure (pdf) later on Wednesday after a senior executive at Aldar was quoted by Reuters as saying it would be “very cautious” about new project launches in Egypt given current economic conditions. Aldar is majority owner (along with Abu Dhabi sovereign wealth fund ADQ) of upmarket real estate developer SODIC. “SODIC’s future growth potential continues to be positive with a revenue backlog of almost EGP 35 bn. It is also working on expanding its landbank in multiple areas across Egypt, including West Cairo, East Cairo, and the North Coast,” Aldar said.

BACKGROUND- Aldar and ADQ acquired SODIC in 2021; the Emirati developer has since tried on at least two occasions to grow its footprint here via acquisition (here and here)

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