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Aldar Properties Q1 net profit up 15pc

ABU DHABI, May 10, 2016

Aldar Properties, a leading property developer in Abu Dhabi, UAE, on Tuesday registered a first quarter net profit of Dh654 million ($178 million), up 15 per cent over Dh571 million ($155.4 million) recorded for the same period last year.

The state-linked developer of Abu Dhabi's Formula One circuit had reported higher profits in nine of the preceding 10 quarters. Sico Bahrain had forecast Aldar would make a quarterly profit of Dh453.6 million ($123.4 million).

Aldar's first-quarter revenue too witnessed a surge rising from Dh1.18 billion ($321 million) to Dh1.23 billion ($334 million) a year earlier.

This was supported by growth in recurring revenue, which represented 61 per cent of total revenue in the first three months of 2016, said the developer.

In the first quarter, gross profit from recurring revenue increased by 10 per cent to Dh403 million ($110 million) versus Dh368 million ($100 million) in the same period of 2015 predominantly reflecting the impact of Yas Mall, which is now fully trading.

During the first quarter, Aldar had sold 320 units worth Dh940 million ($256 million) in off-plan development sales, continuing to demonstrate demand for its real estate developments in Abu Dhabi.

This included sale of 188 units worth Dh324 million ($88 million) predominantly relating to the Mayan, Meera and Al Nareel development projects, while the West Yas sales included 132 units worth Dh616 million ($168 million).

Commenting on the performance, CEO Mohamed Khalifa Al Mubarak, said: “Aldar has had a solid first quarter of the year. We have seen strong demand for high-quality real estate products, and our recurring revenue asset portfolio continues to stabilise."

"Our development and asset management businesses are well matched to underlying demand and our balance sheet remains extremely strong," stated Al Mubarak.

In April, Aldar had announced the launch of Yas Acres, a Dh6-billion ($1.63 billion) golf and waterfront development including 1,315 villas and townhouses.

The project is one of the most significant new residential developments to be launched on Yas Island, a key focus of Aldar’s destination approach, and has received strong initial interest.

In addition and following substantial interest in Mayan, a further 144 units were launched in April taking the total units launched to 512.  

"We continue to see high levels of interest in quality real estate product among buyers, driving demand for our developments, which offer lifestyle amenities in desired locations such as Yas Island, Shams Abu Dhabi and Al Raha Beach,” he added.-TradeArabia News Service




Tags: abu dhabi | Aldar Properties |

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