Abu Dhabi’s Aldar reports 9% profit rise
Developer made $178m net profit in second quarter despite signs the UAE capital’s property market is slowing
The Abu Dhabi developer Aldar has reported a 9% increase in second-quarter net profits despite signs the local property market is slowing.
Aldar made AED 654 million ($178 million) during the quarter, up from AED 601 million last year, on revenues of AED 1.7 billion, according to a statement.
The developer said quarterly off-plan sales exceeded AED 1 billion, from projects such as Yas Acres – which is now 80% sold across phases one and two – and Mayan, where 75% of units in the first five buildings have been sold.
Aldar’s Yas Mall is at 98% trading occupancy, its residential portfolio at 96% occupancy, and office portfolio at 95% occupancy.
“Aldar’s second quarter performance highlights the significant progress we have made in building a mature and sustainable business. The contribution from our recurring revenue portfolio continued to grow with strong occupancy rates across our assets. The successful launch of Yas Acres in April underlines our commitment to developing attractive destinations, while the Ansam, West Yas and Mayan developments are all helping shape the Yas Island Living experience,” said Mohamed Khalifa Al Mubarak, CEO of Aldar Properties.
“With over AED 1 billion in off-plan sales during the quarter, AED 1.9 billion in the first six months of 2016, we continue to see strong demand for our high-quality real estate products. We remain a strong, resilient business with a clear strategy that is focused on creating long-term value for our shareholders.”
The results come amid signs that the Abu Dhabi property market is slowing, with property advisory JLL saying in July that rents have dropped for the first time in three years.
Despite that Aldar has retained its guidance that it will construct 1,500 residential units this year, according to a report by Reuters.
“There is still demand in Abu Dhabi for the right product and the right location,” Talal al-Dhiyebi, the firm’s chief development officer, is reported as saying by the news agency.
