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Aldar’s net income rose 40% y-o-y to AED 4.4 bn in 2023, underpinned by record sales, robust demand, and an expanded investment portfolio, according to the company’s earnings release (pdf). The company’s revenues rose 26% y-o-y to AED 14.2 bn in 2023. Full-year sales increased 94% y-o-y to a record AED 27.9 bn, while its revenue backlog grew to a record AED 36.8 bn. Growth came on the back of expat buyers and international investors, as well as its expansion into Dubai, Ras Al Khaimah and the UK, the developer said.
SOUND SMART- In real estate, sales ≠ revenues. With off-plan sales dominating the industry, most real estate companies book a sale when you sign a contract to buy a home. But they only record (some or all) of the value of the unit it sold you when it (a) delivers the unit to you or (b) hits a percentage completion on a total project. In most cases, then, revenues are composed of sales from past periods, while sales in a given quarter will be recognized as revenues in the future when units are completed or delivered.
The Abu Dhabi-based real estate developer’s net income stood at AED 1.4 bn in 4Q 2023, up 39% y-o-y, while revenues rose 40% y-o-y to AED 4.4 bn in 2023. Group sales hit AED 8.5 bn, up 65% y-o-y, marking Aldar’s highest-ever quarterly sales.
Looking ahead: An “AED 5 bn pipeline of ‘develop-to-hold’ assets across core segments and AED 1 bn investment in logistics set to bolster recurring-income streams and long-term capital appreciation,” the developer said, adding that it is “well positioned for further expansion, centered on its home market.”
Dividends: The company plans to dish out some AED 1.3 bn in dividends for 2023, according to the statement.
Construction and real estate firm Emirates Stallions Group (ESG) reported a 316% y-o-y increase in net incometo AED 687 mn in 2023, according to its earnings release (pdf). The International Holding Company subsidiary saw a 70% y-o-y growth in revenues to AED 609 mn, primarily driven by an emphasis on high-value projects. Meanwhile, total assets grew 168% y-o-y, standing at AED 3.06 bn.
An expanded scope: ESG ventured into new sectors last year, with acquisitions such as a majority stake in United International Group for manpower solutions, and an entrance into staff housing and real estate with investments in Kezad Communities and Afkar Financial & Property Investments. The company also launched ESG Hospitality to solidify its position in the hospitality sector.
Looking ahead:“ESG remains committed to building on its current momentum, with a focus on sustainable growth, operational excellence, and strategic expansion to continue delivering exceptional value to both its shareholders and clients alike,” reads the press release.
Al Yah Satellite Communications Company’s (Yahsat) net income attributable to shareholders rose 68% y-o-y to AED 405 mn in 2023, according to the company’s unaudited financials (pdf). The company’s revenues also rose 5.5% y-o-y to AED 1.68 bn, driven by expansions across all operating segments, and in particular mobility solutions, the company said.
Ras Al Khaimah Poultry & Feeding Co. (Rapco Investment) turned to the black in 2023, recording a bottom line of AED 16.2 mn after reporting losses of nearly AED 561k in 2022, according to the company’s preliminary results brief (pdf). Rapco collected AED 11.5 mn in income from investments last year, up 16% y-o-y. The company attributes the profitability to the commencement of hospitality operations in 4Q 2022, the brief adds.
Umm Al Quwain General Investments saw its bottom line fall 45% y-o-y to AED 27 mn in 2023 due to a one-off gain from a share sale in 2022, as well as a decline in unrealized income on the back of a revaluation of investments, according to the company’s preliminary results (pdf). Revenues declined 38.5% y-o-y to AED 35.1 mn in 2023.
Abu Dhabi-based investment firm The National Investor narrowed its net losses in 2023 to AED 476k, down from a net loss of AED 27.2 mn in 2022, according to the company’s preliminary results (pdf). The company also saw its revenues rise to AED 4.9 mn last year, compared to a loss of AED 20.8 mn in 2022.
