Tuesday 11 August 2020

Aldar's Q3 net profit surges 14pc, revenue hits $435m

ABU DHABI, November 12, 2019

Aldar Properties, a leading property development, management and investment company based in Abu Dhabi, today (November 12) reported a 14%  increase in its gross profit for the third quarter which rose to Dh662 million ($180 million) from Dh581 million ($158 million).

Announcing the results for the three-month period, Aldar said its revenue increased 7% to Dh1.6 billion ($435 million) from last year's figure of Dh1.5 billion ($408 million).

However, the group's net profit decreased 8% to Dh387 million from last year's Dh420 million, due to higher non-recurring income in 2018, primarily from government reimbursement payments for completed infrastructure delivered by Aldar.

A key highlight during the period was the issuance of a $500 million sukuk by Aldar Investments in mid-October which got six times oversubscribed and received strong demand from international investors.

On its results for the nine-month period till September 30, Aldar said the group's revenue increased 12% to hit Dh5.03 billion from Dh4.48 billion last year, while its gross profit soared to Dh2.05 billion, thus registering a 6% growth over Dh1.94 billion last year.

However, Aldar witnessed a 12 per cent drop in its net profit which fell to Dh1.36 billion from last year's Dh1.53 billion, mainly due to higher non-recurring income in 2018, primarily from government reimbursement payments for completed infrastructure delivered by Aldar.

The Abu Dhabi group said its Development Management business had reported a strong third quarter and year-to-date performance, based on a strategy that blends delivery of high-quality developments with demand-driven sales of infrastructure-enabled land plots.

Its gross profit increased 29% to Dh255 million in Q3 2019, it stated.

Aldar pointed out that several new projects were launched and awarded in 2019 thus taking its total development value to nearly Dh10 billion (Dh5 billion between Alreeman I, Alreeman II, Lea and Reserve; Dh5 billion from Government-awarded contracts) during the three-month period.
On the group's performance, CEO Talal Al Dhiyebi said: "Aldar aims to deliver sustainable, broad-based growth. Development sales have seen strong momentum this year following the successful launch of new projects. Robust demand from end users for our off-plan developments and infrastructure-enabled land plots is a positive sign for the Abu Dhabi real estate market and the wider economy."

"Meanwhile, our large portfolio of rental properties owned and managed by Aldar Investments is producing predictable income streams that provide the strong base for our dividend. Overall, government policies are building momentum and positive sentiment in the Abu Dhabi economy that are meaningfully contributing to Aldar’s growing pipeline of business," he added.-TradeArabia News Service


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