Aldar Properties, a leading property development company in Abu Dhabi, UAE, said it has delivered a strong performance with an eight per cent year-on-year increase in revenue which hit Dh1.5 billion ($408 million) and a steady y-o-y gross profit of Dh581 million ($158 million), reflecting the strength of its core business.

Announcing its financial results for the third quarter, Aldar said its net profit for the period stood at Dh420 million, while the net operating income from recurring revenue asset portfolio surged six per cent to Dh381 million over last year supported by recent asset additions and resilient performance across existing asset base.

The Abu Dhabi developer pointed out that the year-to-date development sales surged to Dh1.5 billion mainly with the support from sales at Al Ghadeer, Mamsha Al Saadiyat and West Yas.

The asset management represented 66 per cent of the Q3 gross profit, it added.

On the impressive results, CEO Talal Al Dhiyebi said: "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," he noted.

"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," stated Al Dhiyebi.

"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," he added.
 
On the performance of its other businesses, Aldar said it had witnessed steady occupancy at approximately 90 per cent across retail, residential and commercial portfolios, ahead of wider Abu Dhabi market.
 
The hospitality portfolio registered a 70 per cent occupancy during the third quarter, in line with last year, it stated.

According to Aldar, the year-to-date off-plan sales surged to Dh1.5 billion mainly driven by sales at Al Ghadeer, Mamsha Al Saadiyat, and West Yas.

The third quarter results reflect the first full quarter’s contribution of the acquired operating assets and two projects under construction, Mamsha and Jawaher.

In March, Aldar had signed an MoU with Emaar to develop Dh30 billion worth 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, stated the developer.
 
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 June 30, it added.

Al Dhiyebi said 2018 had been a significant year for Aldar, with a series of strategic milestones announced which helped in further strengthening its business and expanding the focus to a wider range of destinations across Abu Dhabi, including Saadiyat Island.

"Recent government initiatives including the Dh50 billion Ghadan 21 programme, legislative changes encouraging longer term residency and Adnoc’s Dh486 billion capital investment plans will accelerate national development and support sustainable long-term growth," he stated.

"This gives us many reasons to be optimistic about the future of Abu Dhabi and Aldar Properties," he added.-TradeArabia News Service