UAE-based Aldar Properties has reported a 20 per cent growth in its revenue for the first quarter, which soared to Dh1.76 billion ($479 million) from last year's figure of Dh1.47 billion ($400 million) amid strong development activity across all its projects.

Announcing the results for the first three months, Aldar said its development sales surged by 49 per cent to hit Dh1 billion ($272 million) in the first quarter of 2019, driven by the successful launch of its key projects Alreeman, a development in the Alshamkha area of Abu Dhabi, in January

The Abu Dhabi developer's gross profit for the period hit Dh723 million in line with the first quarter of 2018.
 
However, its net profit fell 26 per cent to Dh493 million owing to legacy of other income events, said the statement from the company. The net profit attributable to shareholders rose four per cent to Dh553 million, it added.

According to Aldar, the company's asset management net operating income rose nine per cent to Dh431 million, driven by last year’s asset acquisitions.

It also witnessed growth across adjacent businesses, including schools operator Aldar Academies, and newly launched property management firm Provis.

On the Q1 results, CEO Talal Al Dhiyebi said: "This year is off to a great start. Our strong sales reinforce Abu Dhabi’s favourable supply and demand dynamics as seen with Alreeman and Lea. Our high-quality asset management portfolio is well balanced and showing the benefits of its strategic diversification. Our strategy is optimised to take advantage of the opportunities stemming from pro-growth government initiatives.”

Recent Government reforms, including the introduction of freehold title for foreign buyers within investment zones in Abu Dhabi, are enhancing the long-term attractiveness of real estate sector, he stated.

"In addition, the Abu Dhabi Government’s fiscal stimulus programme – Ghadan 21, and new measures to encourage business growth, are already starting to spur the economy and will increase the allure of the Emirate as a place in which to live, work and invest," remarked Al Dhiyebi.

In line with Aldar’s strategy of growing its portfolio of high quality assets and optimising the value for shareholders, the Asset Management business continued to make strong progress in the first quarter of 2019.

On its hospitality sector's performance, Aldar said it had a standout quarter, with a 94% increase in NOI versus Q1 2018, supported by major events across Abu Dhabi including the Special Olympics and Idex that led to occupancy and ADRs to increase two per cent and 19 per cent respectively.

The Emirati developer carried out two transactions in the first quarter: In March, it acquired full ownership of Etihad Plaza and Etihad Airways Centre in an Dh1.2 billion non-cash transaction that unwound three existing joint venture agreements with Etihad, a deal which is expected to add approximately Dh100 million in NOI on an annualised basis.

Also in March, it sold Al Murjan Tower for Dh289 million for an implied 6.6 per cent yield, in line with Aldar Investments’ strategy to realise value and redeploy capital in new high-potential opportunities

During the period, the developer had appointed Jassem Saleh Busaibe as Aldar Investment’s CEO.

In this role, Busaibe is overseeing the implementation of its strategy through the active management and growth of its high-quality portfolio, said the statement from Aldar.

Also it had launched Provis – a new entity to deliver market leading, innovative estate management solutions to clients across the UAE and is value-enhancing addition to Aldar’s portfolio of successful subsidiaries, it added.-TradeArabia News Service