Tuesday, December 11, 2018 3:57 AM

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Aldar reports 8% growth in Q3 revenues to Dh1.5 billion


Aldar Properties, Abu Dhabi’s largest freehold property developer, reported an 8 percent year-on-year increase in revenue to Dh1.5 billion in the third quarter of 2018 and steady year-on-year gross profit of Dh581 million reflecting the strength of its core business.

 

Aldar’s year to date development sales of Dh1.5 billion was well supported by sales at Al Ghadeer, Mamsha Al Saadiyat and West Yas. Aldar reported net profit Dh420 million.

 

The developer’s operating income from recurring revenue asset portfolio up 6 percent on Q3 2017 to Dh381 million supported by recent asset acquisitions while its asset management represents 66 percent of the Q3 2018 gross profit.

 

Talal Al Dhiyebi, Chief Executive Officer, Aldar Properties commented: “Our financial results for the quarter reflect the solid performance of our two core businesses, with gross profit steady year on year. Our asset management business maintained strong occupancy in Q3, demonstrating resilience. We continued to uphold our reputation for delivery in our development business, with customer handovers at West Yas and Nareel Island.

 

“Our business is structured to deliver long-term growth. Today, more than two thirds of our gross profit comes from the stable, mature assets held in Aldar Investments delivering consistent returns throughout the cycle. This is complemented by a development business that is expected to deliver over 7,000 units from 2018 until 2021, providing a steady pipeline of contracted cash flows that will start contributing to Aldar’s 2018 dividend, in line with our stated dividend policy.

 

“2018 has been a significant year for Aldar, with a series of strategic milestones announced which are further strengthening our business and expanding our focus to a wider range of destinations across Abu Dhabi, including Saadiyat Island. Recent Government initiatives including the AED 50 billion Ghadan 21 programme, legislative changes encouraging longer term residency and ADNOC’s AED 486 billion capital investment plans will accelerate national development and support sustainable long-term growth. This gives us many reasons to be optimistic about the future of Abu Dhabi and Aldar Properties.”

 

 

In March, Aldar signed an MoU with Emaar to develop Dh30 billion of local and international projects. Discussions are ongoing to finalise the terms of the partnership and we look forward to providing further updates in 2019. 

 

In May, Aldar announced one of the largest real estate acquisitions in the UAE’s history, acquiring assets worth Dh3.7 billion from Abu Dhabi’s Tourism Development & Investment Company (TDIC), which completed on 30 June. The third quarter results reflect the first full quarter’s contribution of the acquired operating assets and two projects under construction, Mamsha and Jawaher.

 

The launch of Aldar Investments in September marked the creation of the region’s largest diversified real estate investment company. Aldar Investments is structured to operate independently, which enables it to raise capital separately and pursue its own growth strategy.

 

In September, Moody’s assigned a Baa1 rating to Aldar Investments – the region’s highest non-government corporate credit rating, reflecting the high quality of the portfolio. Aldar Investments was then able to raise US$500 million through the successful issue of a new 7-year sukuk, demonstrating its ability to raise debt on better terms and lower the cost of capital to deliver superior returns to shareholders.

 

Aldar also made major strides to progress its people strategy with a particular focus on youth development and gender equality, appointing its first female to its Executive Management Committee and allocating a number of board seats across its subsidiary portfolios to Aldar’s youth employees.