Aldar Posts 20% Net Profit Growth in Q1 2026 - Diversified Platform Delivers Record Backlog Amid Regional Uncertainty

Tuesday, April 28, 2026

Aldar Properties, Abu Dhabi's leading real estate developer and investment platform, reported strong first-quarter 2026 results, with net profit after tax rising 20% year-on-year to AED 2.3 billion - a performance that underscores the resilience of its diversified business model against a backdrop of evolving regional market conditions.

📊 Q1 2026 Financial Highlights

Profit Growth Driven by Development Backlog and Investment Portfolio

Net profit after tax rose to AED 2.3 billion, driven by continued revenue recognition from development projects under delivery and the resilient performance of Aldar's diversified investment asset base. Earnings per share climbed 25% year-on-year to AED 0.25.

Group sales reached AED 6.7 billion during the quarter, with UAE sales contributing AED 5.9 billion, alongside the launch of two new projects: The Wilds Residences in Dubai and Baccarat Residences Saadiyat in Abu Dhabi.

The Group's development revenue backlog reached a record AED 72.1 billion at the end of March 2026, up from AED 71.7 billion at end-December, providing clear revenue visibility for the next three years. Of this, AED 62.2 billion relates to UAE projects with an average collection period of 29 months.

Total cash collections during Q1 2026 reached approximately AED 4.3 billion, reflecting strong buyer commitment across Aldar's project portfolio.

International Buyers Drive 88% of UAE Sales

Aldar's UAE sales continued to attract sustained demand from international and resident buyers, with sales to this segment reaching AED 5.3 billion - representing 88% of total UAE sales during the quarter. This figure reflects the growing confidence of global investors in Abu Dhabi as a premier destination for real estate investment.

To support this demand, Aldar expanded its global sales network by opening two new Aldar World Experience Centres in Hong Kong and London during the first quarter.

Yas Park Place - Sold 80% in One Week

Launched in mid-April, Yas Park Place achieved sales exceeding AED 800 million, with 80% of offered units sold to date - a result that reaffirms sustained investor confidence in Abu Dhabi's real estate market and the enduring appeal of Aldar's flagship island destinations.

Section One: Aldar Development

📊 Aldar Development - Financial Results

Aldar Development revenues rose 14% year-on-year to AED 6.5 billion, while EBITDA grew 23% to AED 2.2 billion, driven by continued delivery from the record development revenue backlog.

Group sales of AED 6.7 billion reflected a 25% year-on-year decline, in line with a moderation in sales activity during March and Aldar's disciplined approach to new project launches amid evolving market conditions. Customer collections remained strong and in line with contractual timelines, while default rates held steady at their historical level of approximately 1% - reflecting continued buyer commitment and market demand resilience.

The project management services backlog reached AED 91.6 billion at end-March 2026, of which AED 66.7 billion relates to projects under construction, reflecting the sustained strength of government investment in infrastructure and housing projects.

International Operations:

SODIC (Egypt): Contributed AED 116 million (EGP 1.5 billion) to Aldar Development revenues, with sales of AED 194 million (EGP 2.9 billion). SODIC's revenue backlog reached AED 7.2 billion (EGP 107.1 billion) at end-March, with an average collection period of 39 months.

London Square (UK): Contributed AED 316 million (GBP 64 million) in revenues, with sales of AED 576 million (GBP 118 million), driven by the launch of three new developments - Ransomes Wharf, Wimbledon Bridge House, and Westminster Tower. London Square's revenue backlog reached AED 2.7 billion (GBP 560 million) at end-March, with an average collection period of 31 months.

Section Two: Aldar Investment

📊 Aldar Investment - Financial Results

Aldar Investment revenues grew 14% year-on-year to AED 2.1 billion, while adjusted EBITDA rose 18% to AED 905 million, supported by high occupancy rates, resilient rental prices, and contributions from recent strategic acquisitions. Assets under management reached AED 52 billion.

By Sector:

Investment Properties: Adjusted EBITDA rose 27% to AED 632 million, supported by a portfolio occupancy rate of 96% underpinned by long-term lease structures providing a stable income base.

Commercial: Adjusted EBITDA grew 11% to AED 235 million, driven by sustained demand for Grade A office space, with the portfolio maintaining 100% occupancy. New leases were signed at record levels at key locations including Abu Dhabi Global Market. In April, Aldar expanded its partnership with Mubadala through the AED 654 million acquisition of The Link at Masdar City, adding five fully leased mixed-use buildings to the portfolio.

Residential: Adjusted EBITDA declined 4% to AED 127 million, reflecting the expiry of an institutional lease and ongoing Al Qurm East redevelopment works. The portfolio maintained 96% occupancy with stable underlying performance. Future growth will be driven by the Reem and Yas Island develop-and-hold pipeline and the recently announced 9,000-unit affordable housing partnership with the Department of Municipalities and Transport - which will scale Aldar's rental residential portfolio to 20,000 units in the coming years.

Retail: Adjusted EBITDA surged 65% to AED 228 million, driven by contributions from the luxury Galleria following completion of the Mubadala retail joint venture in Q1, along with higher rental rates and occupancy at Yas Mall and Al Jimi Mall - which has become a standout retail success story in Al Ain since the completion of its redevelopment in September 2025. Portfolio occupancy stabilised at 89% at end of Q1.

Industrial & Logistics: Adjusted EBITDA jumped 157% to AED 43 million, supported by 2025 acquisitions of assets in KIZAD and Al Markaz. Organic income growth was underpinned by 96% occupancy and long-term leases with logistics operators. In April, Aldar acquired additional logistics assets in KIZAD from Abu Dhabi Ports Group for AED 650 million.

Hospitality: Adjusted EBITDA grew 6% to AED 98 million, with average daily rate rising 24% to AED 849 and RevPAR increasing 13% to AED 546 during the quarter. Occupancy reached 64% in Q1, reflecting softer demand in March amid regional air travel and international tourism disruptions.

Education (Aldar Education): Adjusted EBITDA rose 8% to AED 67 million, driven by student number growth and fee increases. Student numbers across Aldar-managed schools grew to 18,000 from 16,000 last year, supported by the opening of Noya British School, Al Yasmina American School, and Al Muna British Academy. Total students across all Aldar-operated schools now exceed 36,000.

Aldar Estates: Adjusted EBITDA declined 3% to AED 87 million due to one-time impacts in project management and valuation advisory segments. The platform continues to operate at scale, managing over 145,000 residential units, 2.5 million sqm of commercial and retail space, and contracts exceeding AED 2.7 billion in value.

Develop-and-Hold Portfolio Reaches AED 20.1 Billion

The develop-and-hold portfolio grew by AED 2.8 billion to reach AED 20.1 billion, through a partnership with the Department of Municipalities and Transport to develop 9,000 affordable rental units in Abu Dhabi - a programme that will expand Aldar's rental residential portfolio to 20,000 units over the coming years.

Strong Balance Sheet and Exceptional Liquidity

Aldar maintained a robust financial position, with total available liquidity of AED 33.2 billion at end-March, comprising AED 13.9 billion in available unrestricted cash and AED 19.4 billion in undrawn committed bank facilities.

On the financing front, Aldar completed a USD 1 billion (AED 3.7 billion) public hybrid bond issuance in January, followed by a USD 1 billion (AED 3.7 billion) hybrid private placement with Apollo Global Management in February - which also included the redemption of USD 500 million in subordinated perpetual notes, reducing Apollo's effective ownership in Aldar Investment Real Estate to 9.7%. In April, Aldar closed a AED 5 billion sustainability-linked revolving credit facility, attracting participation from 10 local, regional, and international banks including new lenders - reflecting Aldar's strong credit standing in global capital markets.

Aldar distributed a cash dividend for 2025 of AED 0.205 per share in April, a 10.8% year-on-year increase, representing total distributions of AED 1.61 billion.

Digital Transformation and Sustainability

Aldar continued to advance its digital transformation agenda through the Live Aldar platform, which exceeded 60% adoption at key customer interaction milestones. The platform processed over 4,300 hospitality bookings and more than 12,700 leisure activity tickets during Q1. The Darna rewards programme membership surged 184% year-on-year, recording a monthly record of 46,000 new registrations in March.

On sustainability, Aldar received the Diamond Sustainability Mark from the Abu Dhabi Chamber of Commerce and Industry. The company exceeded its Nafis programme commitment of employing 1,000 UAE nationals by 2026, having achieved this target in early 2025. UAE nationals now represent 44% of the Group's employee base. Aldar supported over 138,000 beneficiaries through social impact initiatives during Q1 and allocated AED 100 million to Abu Dhabi Awqaf - Umm Al Emarat Foundation for Orphans.

In April, Yas Mall became the first shopping centre in the region to join the Sunflower Programme, designed to support customers of determination with non-visible disabilities.

Leadership Commentary

Aldar's leadership stated that Q1 performance reflects the strength of a business model that has evolved to withstand counter-cyclical pressures and navigate unexpected external events with balance and discipline. The record development revenue backlog of AED 72.1 billion alongside a growing high-quality recurring income asset base of AED 52 billion provides clear forward income generation visibility. With a strong liquidity position and high financial flexibility, Aldar is well-positioned to capture upcoming opportunities and continues to be confident in its ability to deliver sustainable long-term returns for shareholders.

EcoPulse24 Analysis

Aldar's Q1 2026 results are a masterclass in portfolio diversification working exactly as intended.

Three observations stand out.

First, the 20% net profit growth in a quarter marked by regional geopolitical turbulence - including the Hormuz crisis and its ripple effects on sentiment - is not a coincidence. It is a deliberate outcome of Aldar's multi-decade strategy of building revenue streams across development, investment, hospitality, education, and logistics. When one segment faces headwinds, others compensate.

Second, the 25% decline in group sales deserves context. This is not a demand problem - Yas Park Place selling 80% in one week proves demand is very much alive. It is a supply discipline decision: Aldar chose not to flood the market with new launches during a period of uncertainty, protecting both pricing and backlog quality. Default rates holding at 1% historically confirms buyers who committed remain committed.

Third, the AED 72.1 billion development backlog is the most important number in this report. It represents locked-in revenue that will flow through the income statement over the next three years regardless of what happens to sentiment or new sales. Combined with AED 52 billion in recurring income assets, Aldar has built what is effectively a two-engine aircraft - if one engine slows, the other sustains altitude.

The key risk to watch: the hospitality segment's 64% occupancy in Q1 signals that regional travel disruptions are a real headwind. If the Hormuz situation prolongs international travel uncertainty into Q2, hospitality performance could weigh on overall results.

For investors, Aldar today is less a real estate developer and more a diversified infrastructure platform with real estate as its foundation. That repositioning, quietly executed over years, is precisely what is delivering these results in one of the most complex regional environments in recent memory.