Revenue increases to $408.3m due to strong ‘revenue recognition’ on developments under construction
Aldar Properties, the Abu Dhabi-based property development company, has said that it has registered a net profit of $182 million for the first quarter of 2018, up 4% from the $174 million posted during the same period in 2017, reflecting a strong start to the year.
In a statement announcing results for the first three months, the developer said that revenue increased to $408.3 million due to strong revenue recognition on developments under construction, while gross profits for the first quarter were $194.6 million.
Development sales for the period hit $185.3 million, driven by sales of existing developments under construction, with more than 80% of all projects under construction sold, as of March 31, 2018.
At the end of the quarter, Aldar launched Reflection, a boutique development on Reem Island, comprising of 374 units, while the developer has also announced the acquisition of assets worth $1 billion from the Tourism Development and Investment Company (TDIC) during this period.
The first quarter also saw the company launch its expanded Alghadeer community project on the border of Abu Dhabi and Dubai and sale of school and retail outlet plots.
“Aldar started 2018 strongly with the announcement of an historic partnership with Emaar to develop the next era of iconic real estate destinations,” said Talal Al Dhiyebi, CEO of Aldar.
“The initial $8.16 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,” he noted.
He added that the launch of Reflection on Reem Island showed the continued momentum of Aldar’s development business, which recorded sales of $185.3 million during the quarter, while the group’s asset management business also continued to deliver a resilient performance.
“The acquisition of TDIC properties 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,” he said.
Besides the off-plan launches, construction is progressing well at all key developments under construction, the statement from Aldar added. On its key achievements, the developer said the delivery of the units at Ansam and Al Hadeel, which commenced in the fourth quarter of 2017, are now complete.
Handovers have also begun on Al Merief and Nareel Island, as planned, it said, while West Yas, Aldar’s first villa community on Yas Island is entering the final stages of construction and will be handed over in the second quarter.