Aldar lifts nine-month net profit 19% to $1.93bn

Abu Dhabi, UAE - Aldar made a net profit after tax of $1.93 billion (AED 7.1 billion) in the nine months to the end of September, up 19% year on year, according to results the Abu Dhabi developer published on 27 October.

Nine-month revenue grew 11% to $7.13 billion (AED 26.2 billion). Gross profit was 19% higher at $2.61 billion (AED 9.6 billion), and EBITDA increased 20% to $2.56 billion (AED 9.4 billion).

Aldar put the profit growth down to the conversion of its development backlog into revenue and to steady earnings from its diversified portfolio of investment properties. Earnings per share were up 20% at $0.21 (AED 0.77).

The third quarter on its own brought revenue of $2.53 billion (AED 9.3 billion), up 16%, and gross profit of $926 million (AED 3.4 billion), up 23%. Quarterly EBITDA climbed 22% to $817 million (AED 3.0 billion), while net profit after tax gained 21% to $626 million (AED 2.3 billion).

The nine-month figure builds on the first-half net profit of $1.33 billion, up 18%, that Aldar announced in July.

Group development sales reached $5.15 billion (AED 18.9 billion) over the nine months, 34% lower than a year earlier. The third quarter contributed $1.85 billion (AED 6.8 billion) of that, also a 34% decline.

In the UAE, sales fell 46% to $3.92 billion (AED 14.4 billion) for the nine months and 45% to $1.36 billion (AED 5.0 billion) for the quarter. Aldar said sales so far this year stand at more than $5.45 billion (AED 20 billion).

Seven projects went on sale during the third quarter, taking the year’s total to 12. They were Al Ghadeer Gardens II, Al Ghadeer Parks, The Canopies, Sei Saadiyat, Talay, Talay Beach and Yas Riva Reserve, and the company said demand held up for both new launches and existing stock as it stepped up the pace of launches.

Buyers from overseas and expatriates living in the UAE spent $3.08 billion (AED 11.3 billion) with Aldar over the nine months, equal to 78% of its UAE sales. The developer said international demand remained strong, pointing to sustained confidence in the market and steady demand for well-located communities.

H.E. Mohamed Khalifa Al Mubarak, Chairman of Aldar, said: “Abu Dhabi continues to demonstrate the strength of its economic foundations, supported by a clear long-term vision, sustained investment in infrastructure and lifestyle, and a progressive business environment. These strengths continue to underpin the emirate’s attractiveness as a destination to live, work and invest.

“Aldar’s performance reflects these foundations, alongside the deliberate investment decisions we have made over time to build a more diversified and resilient business. With AED 71.6 billion in development revenue backlog and AED 57 billion in assets under management, we have established a platform with substantial visibility over future earnings.

“As Abu Dhabi’s economic, social, and cultural ambitions accelerate, we remain focused on contributing to the Emirate’s development through strategic partnerships, disciplined investment and the creation of high-quality communities and assets that deliver enduring value for our shareholders and the people we serve.”

The group’s development backlog was $19.5 billion (AED 71.6 billion) at 30 September, of which $16.15 billion (AED 59.3 billion) sits in the UAE. Aldar said this gives it visibility over revenue for the next two to three years across its UAE and international operations.

The UAE backlog has an average duration of 28 months, and about 89% of it has already been awarded, which the company said supports continued revenue recognition.

New destinations have added to the longer-term pipeline. Marsa Al Saadiyat carries a gross development value (GDV) of $16.34 billion (AED 60 billion) and Yas Point a GDV of $1.63 billion (AED 6 billion).

In September, Aldar agreed a strategic partnership with Arada that creates $3 billion (AED 11 billion) in development opportunities for the two companies’ joint venture in Seih Al Sedeirah. The agreement also covers the sale of land plots on Yas Island to Arada.

Aldar Development, the arm that builds and sells property, lifted third-quarter revenue 20% to $1.91 billion (AED 7.0 billion). Over nine months it earned $5.28 billion (AED 19.4 billion), up 14%, while EBITDA grew 21% to $1.66 billion (AED 6.1 billion), mainly because of work on the revenue backlog.

Project Management Services ended September with a backlog of $21.24 billion (AED 78 billion), including $16.34 billion (AED 60 billion) of work under construction. Aldar linked this to a strong pipeline of government spending on infrastructure and housing.

Aldar handed over almost 2,000 homes between January and September, more than twice as many as in the whole of 2025, which it attributed to steady construction progress and project delivery.

Talal Al Dhiyebi, Group Chief Executive Officer of Aldar, said: “Aldar’s performance in the first nine months reflects the growing strength and maturity of our business, and our ability to maintain momentum while responding to changing market conditions with discipline. Following a measured approach to new launches during the first half, we accelerated activity in Q3 with encouraging demand for our new communities. Overseas and expatriate resident buyers accounted for 78% of UAE development sales, reinforcing Abu Dhabi’s continued appeal to a broad and diverse customer base.

“Alongside this momentum, we have maintained our focus on executing our substantial development backlog, while investments made across our recurring-income platform in recent years are delivering increasingly meaningful contributions to earnings. Our AED 21.3 billion develop-to-hold pipeline provides further opportunities to expand and diversify this income base, strengthening the resilience of our business and supporting future growth.

“As we enter the final quarter, our priorities remain firmly on execution, converting customer demand into sales and progressing our expanding development and investment pipelines. With the scale and diversity of our platform, we are well positioned to sustain momentum and pursue new opportunities while maintaining our commitment to disciplined capital deployment and long-term value creation.”

Outside the UAE, both of Aldar’s overseas businesses grew their share of group sales. Nine-month sales rose 99% at SODIC in Egypt and 177% at London Square in the UK.

SODIC added $85 million (AED 313 million) to Aldar Development’s revenue in the third quarter and $182 million (AED 670 million) over nine months.

Its sales totalled $436 million (AED 1.6 billion) in the quarter and $817 million (AED 3.0 billion) for the nine months. Aldar said more project launches and strong demand for coastal and mid-market homes drove the increase.

SODIC’s revenue backlog stood at $2.59 billion (AED 9.5 billion) when September closed, to be recognised over 30 months on average.

London Square contributed revenue of $112 million (AED 411 million) in the third quarter and $266 million (AED 978 million) over nine months.

The UK developer sold $62 million (AED 226 million) of property in the quarter, taking nine-month sales to $381 million (AED 1.4 billion). Its revenue backlog was $762 million (AED 2.8 billion), to be recognised over an average of 32 months.

Aldar Investment, the recurring-income arm, has more than $15.52 billion (AED 57 billion) of assets under management (AUM), covering investment properties, hotels, schools and property management. AUM grew through acquisitions and completed projects, among them Phase 1 of the Grade A logistics centre at Dubai’s National Industries Park and a cold storage facility built for Emirates Snack Foods.

The division’s third-quarter revenue rose 16% to $626 million (AED 2.3 billion) and adjusted EBITDA jumped 27% to $271 million (AED 997 million). Nine-month revenue was 13% higher at $1.77 billion (AED 6.5 billion), with adjusted EBITDA up 21% at $762 million (AED 2.8 billion).

High occupancy and rental growth supported the result, and Aldar said acquisitions and joint ventures completed in recent years are becoming a bigger source of earnings, especially in commercial, retail, and industrial and logistics property.

Aldar’s develop-to-hold (d-hold) pipeline, made up of projects it builds to keep and lease, is worth $5.8 billion (AED 21.3 billion). It includes $1.8 billion (AED 6.6 billion) of new projects announced this year, and the company expects it to support growth and diversification of recurring income over the next four years.

Investment Properties grew adjusted EBITDA 42% to $199 million (AED 732 million) in the quarter and 34% to $545 million (AED 2.0 billion) over nine months. Occupancy across the portfolio was 96%, and the company pointed to long-term leases that give it a stable income base.

Commercial EBITDA was up 30% at $79 million (AED 289 million) in the third quarter and up 19% at $209 million (AED 767 million) for the nine months. The 99% occupied portfolio has a diversified tenant base that includes government-related entities and established corporates, according to Aldar.

Recent purchases added to commercial growth, including Masdar City Square, which is 99% occupied, and The Link at Masdar City, which is fully let. Aldar and Mubadala bought Masdar City Square for $250 million (AED 918 million) in the third quarter through the joint venture they set up in 2024.

That deal added more than 41,000 sq m of Grade A commercial space and lifted the value of the joint venture’s Masdar City portfolio to $1.28 billion (AED 4.7 billion).

Residential adjusted EBITDA edged up 2% to $35 million (AED 130 million) in the quarter and was broadly flat at $106 million (AED 391 million) over nine months. Leaving out Eastern Mangroves, where refurbishment has left units empty, and sales of strata units, nine-month adjusted EBITDA rose 3%. Residential occupancy held at 97%.

In October, Aldar agreed a $300 million (AED 1.1 billion) forward purchase of more than 1,100 units at Aljada, Arada’s flagship mixed-use development in Sharjah, next to University City. The deal is the company’s first real estate investment in Sharjah.

Aldar said Aljada serves an important part of the emirate and that the purchase widens its footprint in the UAE. Arada is due to deliver the homes in Q4 2029, after which they will join Aldar’s income-producing residential portfolio.

More residential income is expected from d-hold assets at Al Reeman, Yas Residential Village and Studio City, and from Aldar’s partnership with Abu Dhabi’s Department of Municipalities and Transport (DMT) for 9,000 value housing rental units across Mohamed Bin Zayed City and Baniyas.

Retail adjusted EBITDA rose 79% to $70 million (AED 256 million) in the quarter and 71% to $196 million (AED 719 million) for the nine months. The increase came from consolidating Yas Mall, 96% occupied, and The Galleria Luxury Collection, 97% occupied, under the Aldar-Mubadala retail joint venture, along with lease handovers at Saadiyat Grove, which is 84% pre-leased.

Retail occupancy was 97%, excluding Saadiyat Grove and Remal Mall.

Industrial and logistics adjusted EBITDA increased 75% to $16 million (AED 57 million) in the quarter and 126% to $41 million (AED 151 million) over nine months as the portfolio expanded. Phase 1 of National Industries Park, completed in the third quarter, is expected to drive further growth.

The Emirates Snack Foods facility, finished in the second quarter, has started to contribute meaningfully to the segment’s EBITDA. Occupancy was 98%, backed by industrial demand and long leases, and Aldar said the d-hold pipeline will support future growth.

Hospitality adjusted EBITDA slipped 3% to $11 million (AED 39 million) in the quarter and 15% to $49 million (AED 179 million) over nine months, Aldar said disruption to regional travel and weaker demand from international guests weighed on the business, though strong domestic and corporate bookings made up part of the shortfall.

Hotel occupancy fell to 57% from 69% a year earlier, and revenue per available room (RevPAR) dropped 6% to $112 (AED 410). The average daily rate (ADR) climbed 14% to $196 (AED 720), which the company said shows the portfolio’s pricing resilience in a difficult operating environment.

Aldar Education’s adjusted EBITDA declined 20% to $19 million (AED 68 million) in the quarter and 5% to $55 million (AED 201 million) for the nine months. Schools started a week later this academic year, and without that calendar effect on revenue recognition adjusted EBITDA would have risen 4%.

Enrolment at the group’s owned schools grew more than 10% for the 2026/27 academic year, which Aldar said reflects sustained demand from UAE families. Owned schools now have more than 19,800 pupils, out of a total of over 38,000 across 27 owned and managed schools.

Aldar Estates increased adjusted EBITDA 13% to $37 million (AED 136 million) in the third quarter and 16% to $99 million (AED 364 million) over nine months, on strong contract growth across Property Management, Facilities Management and Integrated Community Services.

The business manages over 146,000 homes and 2.5 million sq m of prime retail and commercial space, and holds contracts worth $790 million (AED 2.9 billion), adding to the group’s recurring earnings.

On funding, Aldar completed $2 billion of hybrid issuances in the first quarter and closed a $1.36 billion (AED 5 billion) sustainability-linked revolving syndicated credit facility in the second. Group liquidity was $10.4 billion (AED 38.2 billion) at the end of September.

On sustainability, the company’s designs achieved a 34% cut in energy use intensity against the ASHRAE 2007 baseline and a 42% cut in water use intensity against the Estidama baseline in the third quarter. Of the new developments Aldar launched in Abu Dhabi during the period, 80% received 3 Pearl Estidama design ratings, and every one of the new developments achieved a 2-star Fitwel rating.