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Aldar 1Q 2018 net profit up 4% to Dh668 million

Aldar Properties reported a 4 percent increase in net profit to Dh668 million in the first quarter of 2018, up from Dh641 million recorded in the corresponding period last year. 

The Abu Dhabi-based property developer reported Dh1.5 billion revenue driven by strong revenue recognition on developments under construction. The company’s gross profit reached Dh715 million on property sales of Dh681 million while it warded Dh1.3 billion construction contract for Water’s Edge.

Aldar’s asset management business delivered steady net operating income of Dh396 million demonstrating portfolio resilience.

During the first quarter of 2018, the developer announced a joint venture with Emaar Properties to develop Dh30 billion worth of projects. Later it announced Dh3.7 billion acquisition of assets from Tourism Development & Investment Company (TDIC) providing growth for both the development and asset management business. Aldar also announced Dh10 billion investment into expanded Alghadeer community on the border of Abu Dhabi and Dubai and sale of school and retail outlet plots.

Talal Al Dhiyebi, Chief Executive Officer of Aldar Properties, said: “Aldar started 2018 strongly with the announcement of an historic partnership with Emaar to develop the next era of iconic real estate destinations. The initial AED 30 billion pipeline of projects, including Saadiyat Grove in Abu Dhabi and Emaar Beachfront in Dubai, is just the start of this partnership, which will enhance our country’s reputation as a destination of choice for residents and tourists alike. Our launch of a boutique development on Reem Island - Reflection – shows the continued momentum in our development business, which recorded sales of Dh681 million during the quarter, while our asset management business also continued to deliver a resilient performance.”

“Our acquisition of AED 3.7 billion of assets from TDIC last week, including a portfolio of assets in the prime Saadiyat Island destination, as well as the launch of Alghadeer in April, cements our reputation as Abu Dhabi’s leading real estate developer and asset manager and underlines the scale of our ambitious plans for future growth.”

Development sales for the quarter were Dh681 million, driven by sales of existing developments under construction, with over 80 percent of all projects under development sold as at 31 March 2018. At the end of the quarter, Aldar launched Reflection, a boutique development on Reem Island, consisting of 374 units and offering investors and owner occupiers the opportunity to secure high quality homes in a prime location.

Aside from off-plan launches, construction is progressing well at all key developments under construction. Handovers at Ansam and Al Hadeel, which commenced in Q4 2017, are complete.  Handovers have now commenced on Al Merief and Nareel Island, as planned. West Yas, Aldar’s first villa community on Yas Island is entering the final stages of construction and will be handed over in Q2 2018.  During the quarter, Aldar awarded Dh1.3 billion in construction contracts in respect to the 2,255 unit Water’s Edge development on Yas Island.

In April, Aldar launched a multi-use development on the border of Abu Dhabi and Dubai, enhancing its established destination at its Seih Al Sdeirah landbank, Alghadeer. Launched ahead of Cityscape Abu Dhabi, the Alghadeer community will be complemented by office and retail space as well as hospitality, education and community amenities, in line with Aldar’s strategy to create complete communities. Aldar has already sold two of the land plots for community services including a school and retail outlets.

Aldar’s asset management portfolio of residential, retail, office and hospitality properties delivered a resilient performance during the first quarter of 2018, recording net operating income of Dh396 million. 

Occupancy was healthy across the portfolio. Residential occupancy increased to 92 percent, while occupancy at the expanded office portfolio, including International Tower acquired by Aldar in December, was 91 percent and Yas Mall was 89 percent. The hospitality portfolio recorded occupancy of 85 percent.