Aldar Properties, a leading real estate developer in Abu Dhabi, UAE, has delivered a resilient underlying performance across its businesses for the first half of 2018 compared to the same period last year.

Announcing its financial results for the six-month period, Aldar said there had been a two per cent jump in its revenue which rose to Dh3 billion ($816 million) from Dh2.9 billion ($789 million) mainly driven by revenue recognition on developments under construction and recent asset acquisition.

The gross profit for the first six months rose five per cent to hit Dh1.4 billion from Dh1.3 billion last year. However, its net profit for the six-month period fell fell 12.7 per cent to Dh1.1 billion from last year's Dh1.26 billion, said the developer in its statement.

According to Aldar, the gross profit margin surged by 46 per cent in the first half supported by high margin development and land plot sales revenue.

The balance sheet for the period remains strong with gross debt well in line with established debt policy, it added.

On its Q2 performance, Aldar said its gross profit for the period rose 20 per cent to Dh649 million from Dh542 million last year, while the revenue hit Dh1.5 billion, up 12 per cent over Dh1.4 billion last year mainly supported by recent asset acquisition.

Commenting on the results, CEO Talal Al Dhiyebi said: "Aldar Properties delivered a solid underlying performance for the first half of 2018 alongside a number of landmark announcements. In the development business, we launched a new masterplanned community Alghadeer and reinforced our reputation for delivery as we commenced handover of land plots and villas at Nareel Island, Al Merief and West Yas."

"We have cemented our position as Abu Dhabi’s leading real estate investment company by completing one of the country’s largest ever real estate acquisitions," remarked Al Dhiyebi.

"The transaction, completed in just 60 days after being announced, adds Dh3.6 billion of strategic operating and development assets to our existing portfolio, which continues to deliver a resilient and consistent performance, positioning us well for future growth," he added.
 
According to him, the development sales for the first half rose to Dh1.1 billion, mainly driven by sales of developments under construction, and two newly launched developments that build on Aldar’s destination strategy.

Alghadeer, a new Dh10-billion, 14,408 unit masterplan that sits within Aldar’s Seih Al Sdeirah landbank on the border between Abu Dhabi and Dubai was launched at Cityscape Abu Dhabi in April 2018. Reflection, launched in March this year, is a boutique residential development on Reem Island expanding Aldar’s portfolio of mid-income developments in a city location.   

Aldar said the handover of its Ansam and Hadeel developments has been completed and is now all set to deliver the units at West Yas (Aldar’s first villa community on Yas Island) and Al Merief (a masterplanned community in Khalifa City) and Nareel Island (an exclusive masterplanned community near Al Bateen).

All other developments under construction are progressing well, with Meera, located on Reem Island, on track for handover in the last quarter of 2018, it added.  

In May, Aldar had announced the acquisition of a selection of assets from Tourism Development & Investment Company (TDIC) including residential projects on Saadiyat Island at reasonably advanced stages of construction.

These high-quality projects expand Aldar’s pipeline of existing projects under development and contribute immediate revenue as construction progresses, it added.

The Abu Dhabi developer said its asset management portfolio of residential, retail, office and hospitality properties have delivered another resilient performance, with a 6 per cent increase in net operating income which soared to Dh377 million during Q2 from Dh357 million last year.  

According to Aldar, the occupancy remains healthy across the portfolio. Residential occupancy stood at 91 per cent as of June 30, while occupancy in the commercial portfolio was 91 per cent and Yas Mall steady at 89 per cent.

The hospitality portfolio recorded occupancy of 74 per cent during the first six months of 2018, it stated.

"Aldar’s acquisition of assets from TDIC included a portfolio of operating assets, predominantly comprising residential, hospitality and leisure and district cooling. The transaction was completed in the second quarter within 60 days of being announced," remarked Al Dhiyebi.

"These assets are now firmly integrated into Aldar’s portfolio and will provide a more meaningful contribution during the second half of the year and beyond," he added.-TradeArabia News Service