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ALDAR PROPERTIES-
A solid quarter for Aldar: Abu Dhabi real estate developer Aldar Properties saw its net income after tax grow 37% y-o-y to AED 1.75 bn in 2Q 2024, according to its consolidated financial statements (pdf). The rise in earnings can be credited to “strong end-user demand and increasing global investor interest” in the UAE real estate market, Aldar said in a separate earnings release (pdf), with the developer making AED 7.7 bn in group sales during the quarter, up 10% y-o-y. Revenues came in at AED 5.3 bn, marking a 64% y-o-y increase.
REMEMBER- 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.
In 1H 2024, Aldar recorded a 57% y-o-y increase in net income to AED 3.32 bn. The real estate developer and service provider’s total revenues reached AED 10.92 bn, up 73% y-o-y, driven by the successful execution of its revenue backlog from new and existing projects. Overseas and expat buyers comprised 79% of the company’s UAE sales during the period.
Looking ahead: The company’s revenue backlog reached an all-time high of AED 39 bn at the end of 1H 2024, while its UAE backlog hit a record AED 33.2 bn, expected to “[propel] revenue recognition over the next 2-3 years.”
DRAKE AND SCULL-
Drake and Scull in the black: Dubai-based contractor Drake and Scull reported a net income of AED 3.84 bn in 2Q 2024, compared to the AED 43.4 mn net loss the company posted in the same period last year, according to the company’s consolidated financial statements (pdf). The return to profitability can be credited to the company successfully wrapping up its restructuring plan, which saw it write off AED 4.1 bn in debt and rake in AED 450 mn in fresh capital to re-list on the DFM, according to a separate earnings release (pdf). The DFM-relisted company’s revenues narrowed 20% y-o-y to AED 20.3 mn during the quarter.
REFRESHER- The DFM approved its restructuring plan — which wrote off 90% of its debt — back in November 2023. The construction company was suspended from trading in November 2018 on the back of excessive financial losses and reporting violations.
On a six-month basis, the company recorded a bottom line of AED 3.79 bn in 1H 2024, after booking net losses of AED 162.6 mn in the same period last year. Drake & Skull’s revenues rose 13% y-o-y to AED 50.9 mn during the same period. Excluding the income on the back of the write-off of its debts, its net income during 1H 2024 came in at AED 30 mn.
BHM CAPITAL-
BHM Capital saw its net income rise 3% y-o-y to AED 7.6 mn in 2Q 2024, according to the company’s financials (pdf). The financial services company’s revenues reached AED 39 mn in the second quarter, marking a 17% y-o-y increase.
On a six-month basis, BHM Capital saw its bottom line increase 14% y-o-y to AED 16.8 mn in 1H 2024, according to a separate earnings release (pdf). The company credited its higher earnings to diversified revenue streams, with total revenues rising 30% y-o-y to AED 76.6 mn.
DUBAI FINANCIAL MARKET-
Dubai Financial Market (DFM) saw its net income after tax jump 19% y-o-y to AED 91.8 mn in 2Q 2024, according to its financials (pdf). The DFM booked AED 157.6 mn in revenues during the quarter, up 23% y-o-y compared to the same period last year.
For the first half of 2024, the exchange’s net income after tax jumped 62% y-o-y, reaching AED 181.4 mn in 1H 2024. Revenues came in at AED 305.7 mn, up 40% y-o-y.
The bourse saw robust trading activity, with the number of trades climbing 22% y-o-y to 1.07 mn, according to the DFM’s earnings release (pdf). Total trading value also rose 4% y-o-y to AED 48 bn.
DFM drew in 72.6k new investors in 1H 2024, with foreign investors accounting for 85% of the total entrants and making some AED 1.2 bn in investments. Institutional investors held a 66% market share of the total trading value.
