Aldar Properties

1. Company Overview & Earnings Context

Aldar Properties PJSC is an Abu Dhabi Securities Exchange (ADX)-listed real estate developer, investor and asset manager with operations across the UAE, Egypt and the United Kingdom. The company operates through two principal business segments: Aldar Development, which focuses on property development, sales and project management, and Aldar Investment, which manages income-generating real estate assets across commercial, residential, retail, hospitality, education and logistics.

For the nine months ended September 30, 2026, Aldar reported revenue of AED 26.19 billion, increasing 11% year-on-year, while net profit rose 19% to AED 7.11 billion. EBITDA increased 20% to AED 9.4 billion, supported by the conversion of its development backlog into revenue, resilient property demand, higher rental income and contributions from acquisitions and investment properties. The company maintained a substantial development backlog of AED 71.6 billion and investment assets under management of AED 57 billion, providing visibility over future development revenue and recurring income.

2. Financial Performance Snapshot

• Revenue: AED 26.19 billion (+11.2% YoY)

• Direct Costs: AED 16.55 billion (+7.1%)

• Gross Profit: AED 9.64 billion (+19.1%)

• Gross Profit Margin: 36.8%, compared with 34.4%

• EBITDA: AED 9.4 billion (+20%)

• Selling and Marketing Expenses: AED 98.5 million (-1.1%)

• Staff Costs: AED 618.5 million (+7.8%)

• Depreciation and Amortisation Expenses: AED 514.5 million (+10.2%)

• Net Investment Property Revaluation Gain: AED 590.2 million (+6.7%)

• Finance Income: AED 770.3 million (+29.1%)

• Finance Costs: AED 1.42 billion (+36.3%)

• Profit Before Tax: AED 8.09 billion (+18.5%)

• Income Tax Expense: AED 975.3 million (+13.6%)

• Net Profit After Tax: AED 7.11 billion (+19.2%)

• Net Profit Attributable to Shareholders: AED 6.12 billion (+19.0%)

• Basic and Diluted EPS: AED 0.773, compared with AED 0.644 (+20.0%)

Compared with 9M 2025:

• Revenue increased from AED 23.55 billion to AED 26.19 billion.

• Gross profit increased from AED 8.09 billion to AED 9.64 billion.

• EBITDA increased approximately 20% to AED 9.4 billion.

• Profit before tax increased from AED 6.82 billion to AED 8.09 billion.

• Net profit increased from AED 5.97 billion to AED 7.11 billion.

• Net profit attributable to shareholders increased from AED 5.14 billion to AED 6.12 billion.

• EPS increased from AED 0.644 to AED 0.773.

• Operating cash flow declined from AED 5.30 billion to AED 2.36 billion.

3. Operational Highlights & Key Metrics

• Total Assets: AED 131.67 billion (+20.2% since December 2025)

• Total Equity: AED 55.74 billion (+14.3% since December 2025)

• Total Liabilities: AED 75.94 billion

• Cash and Bank Balances: AED 23.21 billion

• Group Liquidity: AED 38.2 billion

• Investment Properties: AED 42.33 billion

• Investment Assets Under Management: AED 57 billion

• Group Development Sales: AED 18.9 billion (-34% YoY)

• UAE Development Sales: AED 14.4 billion (-46%)

• International and Expatriate Buyer Sales in UAE: AED 11.3 billion (78% of UAE sales)

• Group Development Revenue Backlog: AED 71.6 billion

• UAE Development Revenue Backlog: AED 59.3 billion

• Project Management Services Backlog: AED 78 billion

• Develop-to-Hold Pipeline: AED 21.3 billion

• UAE Cash Collections: AED 11.4 billion

• Homes Handed Over: Almost 2,000 during 9M 2026

• New Development Projects Launched: 12 during 9M 2026, including 7 in Q3

• Aldar Development Revenue: AED 19.4 billion (+14% YoY)

• Aldar Development EBITDA: AED 6.1 billion (+21%)

• Aldar Investment Revenue: AED 6.5 billion (+13%)

• Aldar Investment Adjusted EBITDA: AED 2.8 billion (+21%)

• Investment Properties Adjusted EBITDA: AED 2.0 billion (+34%)

• Investment Properties Portfolio Occupancy: 96%

• Commercial Portfolio Occupancy: 99%

• Residential Portfolio Occupancy: 97%

• Retail Portfolio Occupancy: 97%, excluding Saadiyat Grove and Remal Mall

• Industrial and Logistics Portfolio Occupancy: 98%

• SODIC Development Sales: AED 3.0 billion (+99%)

• London Square Development Sales: AED 1.4 billion (+177%)

• Aldar Education Total Enrolment: Over 38,000 students across 27 schools

• Aldar Estates Residential Units Under Management: Over 146,000

• Net Cash Generated from Operating Activities: AED 2.36 billion

The company's development pipeline expanded through new destinations including Marsa Al Saadiyat, with an estimated gross development value of AED 60 billion, and Yas Point, with an estimated gross development value of AED 6 billion. Aldar also entered a strategic partnership with Arada involving AED 11 billion in development opportunities and acquired Masdar City Square alongside Mubadala for AED 918 million. In October, the company agreed to purchase more than 1,100 residential units in Sharjah's Aljada development for AED 1.1 billion, marking its first real estate investment in Sharjah.

4. Key Performance Drivers

Aldar's nine-month performance was primarily driven by the conversion of its substantial development backlog into recognised revenue, supported by growing contributions from its investment properties portfolio. Aldar Development revenue increased 14% to AED 19.4 billion, while EBITDA rose 21% to AED 6.1 billion, reflecting continued project execution across the UAE and international markets. However, group development sales declined 34% to AED 18.9 billion, reflecting lower UAE sales compared with the prior year and the timing of project launches. UAE sales declined 46% to AED 14.4 billion, although demand from overseas and expatriate buyers remained strong.

Aldar Investment contributed to earnings growth, with revenue increasing 13% to AED 6.5 billion and adjusted EBITDA rising 21% to AED 2.8 billion. The investment properties business benefited from high occupancy, rental growth and acquisitions across commercial, retail and logistics assets. Retail adjusted EBITDA increased 71% to AED 719 million, while industrial and logistics adjusted EBITDA grew 126% to AED 151 million. These gains were partially offset by weaker hospitality performance, where adjusted EBITDA declined 15% amid regional travel disruptions and softer international demand.

International operations also supported business diversification. SODIC's development sales in Egypt increased 99% to AED 3.0 billion, while London Square's sales in the United Kingdom rose 177% to AED 1.4 billion. Meanwhile, the company's gross profit margin improved to approximately 36.8%, reflecting stronger profitability relative to revenue growth.

Despite higher earnings, operating cash flow declined to AED 2.36 billion from AED 5.30 billion, primarily reflecting working capital movements associated with development activity, including increased land holdings, development work in progress, receivables and contract assets. Finance costs also increased to AED 1.42 billion, reflecting higher financing expenses during the period.

5. Outlook & Forward Guidance

Aldar enters the final quarter of 2026 with a development revenue backlog of AED 71.6 billion, including AED 59.3 billion in the UAE, providing revenue visibility over approximately the next two to three years. Management remains focused on converting development demand into sales, executing existing projects and progressing its expanding development and investment pipelines. Approximately 89% of the UAE development backlog has been awarded, supporting continued revenue recognition.

The company's AED 21.3 billion develop-to-hold pipeline is expected to support recurring income growth and diversification over the next four years. This includes new commercial, residential, retail and logistics assets, alongside expansion through acquisitions and strategic partnerships. The recently announced Aldar-Arada partnership, development opportunities at Marsa Al Saadiyat and Yas Point, and the company's entry into Sharjah are expected to strengthen its long-term development and investment presence.

International operations through SODIC and London Square remain important contributors to Aldar's geographic diversification, while high occupancy across its investment properties portfolio supports recurring rental income. Management continues to prioritise disciplined capital deployment, project execution and long-term value creation. The company did not provide specific consolidated revenue, EBITDA or net profit guidance for full-year 2026 in its earnings announcement.

6. Investor Takeaway

Aldar delivered strong financial performance in 9M 2026, with revenue increasing 11% to AED 26.19 billion, EBITDA rising 20% to AED 9.4 billion and net profit growing 19% to AED 7.11 billion. The results reflect continued development backlog execution, higher recurring investment income and growing contributions from international operations.

The company's AED 71.6 billion development backlog, AED 57 billion investment assets under management and AED 21.3 billion develop-to-hold pipeline provide a foundation for future revenue and income generation. However, the decline in development sales, weaker operating cash flow and rising finance costs remain important considerations.

Looking ahead, investors should monitor new project launches, development sales recovery, backlog conversion, rental income growth, cash flow generation and the performance of international operations as Aldar continues expanding its real estate development and investment portfolio.