Aldar Properties Posts 20% Net Profit Jump to AED 2.3B in Q1 2026, Expands Office, Industrial, and Retail Real Estate Portfolio

Aldar Properties PJSC reported a 20% year-on-year increase in first-quarter fiscal 2026 net profit to AED 2.3 billion, driven by revenue recognition from a record development backlog and resilient earnings across its office real estate, industrial real estate, retail real estate, and hospitality real estate segments, the company announced April 28, 2026.

Group revenue rose 12% year-on-year to AED 8.7 billion, while EBITDA climbed 22% to AED 3.0 billion and gross profit increased 19% to AED 3.3 billion. Earnings per share for the quarter increased 25% year-on-year to AED 0.25.

Commercial Real Estate Investment Portfolio Drives Earnings Growth

Aldar Investment, the company's income-generating property arm, reported adjusted EBITDA of AED 905 million for the quarter, up 18% year-on-year, supported by high occupancy rates, robust rental rates, and contributions from recent real estate acquisitions. Assets under management rose to AED 52 billion.

Within the investment properties segment, commercial office real estate adjusted EBITDA increased 11% year-on-year to AED 235 million. The company reported 100% occupancy across its commercial portfolio, citing sustained demand for Grade A office space and the contribution of Yas Place, which reached full occupancy following its completion in the second quarter of 2025. Recent leasing activity included new leases signed at record levels at Abu Dhabi Global Market, according to the company.

In April, Aldar completed a real estate acquisition of The Link at Masdar City for AED 654 million through its joint venture with Mubadala, adding five fully leased mixed-use buildings to the commercial portfolio.

Industrial Real Estate Segment Posts 157% EBITDA Growth

Aldar's industrial real estate segment delivered the strongest segment growth in the quarter, with adjusted EBITDA rising 157% year-on-year to AED 43 million. The company attributed the increase to acquisitions of assets at KEZAD and Al Markaz in 2025, as well as organic income growth supported by a 96% occupancy rate at quarter-end.

In April, following the close of the first quarter, Aldar completed an additional real estate acquisition of logistics assets at KEZAD from AD Ports Group for AED 650 million. The company said long-term lease agreements with logistics operators and demand from new market segments continue to underpin portfolio stability. Future industrial real estate growth is expected from a develop-to-hold pipeline that includes expansion of Abu Dhabi Business Hub, facilities in Dubai South, and National Industries Park in Dubai, as well as build-to-suit projects.

Retail Real Estate Adjusted EBITDA Surges 65% on Mubadala JV Completion

Retail real estate adjusted EBITDA increased 65% year-on-year to AED 228 million, driven by contributions from The Galleria Luxury Collection following the completion of a retail joint venture with Mubadala in the first quarter, as well as increased rental rates and occupancy at Yas Mall and Al Jimi Mall. Portfolio occupancy stood at 89% at the end of the first quarter, excluding Remal Mall.

The company noted that footfall has stabilized and is approaching normalized levels following an initial decline in early March.

Hospitality Real Estate Performance Reflects Mixed Quarter

Aldar's hospitality real estate segment reported adjusted EBITDA of AED 98 million, up 6% year-on-year. Average daily rate increased 24% to AED 849 and revenue per available room rose 13% to AED 546 for the quarter. Occupancy was 64% in the first quarter, reflecting softer demand in March, which the company attributed to disruptions to regional flight connectivity and international tourism. The company said it is accelerating a hotel transformation program to strengthen asset positioning.

Residential Development Sales Moderate; Backlog Reaches Record AED 72.1 Billion

Aldar Development reported revenue of AED 6.5 billion for the quarter, up 14% year-on-year, with EBITDA rising 23% to AED 2.2 billion. Group sales totaled AED 6.7 billion, a 25% year-on-year decline, which the company attributed to moderated launch activity and a disciplined approach to project launches in response to evolving market conditions. UAE sales decreased 30% year-on-year to AED 5.9 billion.

Despite the sales decline, the group development revenue backlog reached a record AED 72.1 billion at the end of March 2026, up from AED 71.7 billion at the end of December 2025, providing what the company described as clear visibility on revenue recognition over the next three years. The UAE revenue backlog stood at AED 62.2 billion, with an average duration of 29 months.

Two projects were launched in the UAE during the first quarter: The Wilds Residences in Dubai and Baccarat Residences on Saadiyat Island in Abu Dhabi. In April, Aldar launched Yas Park Place, generating more than AED 800 million in sales with 80% of released units sold. Cash collections in the first quarter totaled AED 4.3 billion, and the company reported default rates of approximately 1%, in line with historical levels.

International sales included AED 194 million from SODIC in Egypt and AED 576 million from London Square in the United Kingdom, the latter driven by three development launches including Ransome's Wharf, Wimbledon Bridge House, and Westminster Tower. Aldar also opened 'World of Aldar' experience centers in Hong Kong and London during the quarter to support cross-geography sales. Overseas and expatriate buyers represented 88% of UAE sales, totaling AED 5.3 billion.

Commercial Real Estate Financing Activity Strengthens Balance Sheet

Aldar completed a series of financing transactions during and immediately following the quarter. In January, the company closed a USD 1.0 billion (AED 3.7 billion) public subordinated hybrid notes issuance. In February, it completed a USD 1.0 billion (AED 3.7 billion) private placement with Apollo Global Management, which also included the repayment of USD 500 million in perpetual subordinated notes, reducing Apollo Global Management's effective ownership in Aldar Investment Properties to 9.7%.

In April, Aldar completed an AED 5 billion sustainability-linked committed revolving credit facility, attracting participation from ten local, regional, and international banks. Total available liquidity stood at AED 33.2 billion at the end of March, comprising AED 13.9 billion in free and unrestricted cash and AED 19.4 billion in committed undrawn bank facilities.

The company also distributed a dividend of AED 0.205 per share for 2025, representing a 10.8% year-on-year increase and a total payout of AED 1.61 billion.

Develop-to-Hold Pipeline Expands to AED 20.1 Billion

Aldar's develop-to-hold pipeline expanded by AED 2.8 billion to AED 20.1 billion during the quarter, driven by a partnership with the Department of Municipalities and Transport to deliver 9,000 value housing units for rent in Abu Dhabi. The company said this partnership is expected to contribute to Aldar's residential portfolio reaching 20,000 rental units in the coming years.

Landbank replenishment in the UAE during the first quarter carried a gross development value of AED 61 billion, including strategic land plots in key Abu Dhabi destinations and an expansion of the Dubai Holding joint venture. The project management services backlog stood at AED 91.6 billion at the end of March, with AED 66.7 billion under construction.

Aldar Estates, the company's property and facilities management platform, reported adjusted EBITDA of AED 87 million, down 3% year-on-year, reflecting one-off impacts in project management and valuation and advisory verticals. The platform manages over 145,000 residential units and 2.5 million square meters of retail and commercial space, with contracts valued at over AED 2.7 billion.

Sources: Aldar Properties PJSC Q1 FY2026 Financial Results