Aldar set to tap into mid-market segment
dubai — Abu Dhabi-based Aldar Properties on Thursday said its net profit fell four per cent to Dh1.26 billion in the first-half of this year from Dh1.31 billion in the corresponding period last year and will focus on underserved mid-market segment in the UAE capital.
The developer said in a press statement on Thursday that its first-half revenues remained flat at Dh2.93 billion. It recorded a five per cent increase in gross profit to Dh1.29 billion, up from Dh1.23 billion in the first half of 2016.
The developer achieved Dh1.8 billion development sales value in first six months with Dh600 million contribution from the launch of The Bridges. Its second-quarter net profit fell from Dh654 million in Q2 2016 to Dh620 million during April-June 2017 period, falling by five per cent.
Mohamed Khalifa Al Mubarak, chief executive officer of Aldar Properties, said: “Robust occupancy across our portfolio of investments demonstrates our resilience as an asset manager and the success of our most recent residential development, The Bridges, clearly shows there is strength in the Abu Dhabi property market. The unprecedented response to The Bridges, which sold out in a matter of weeks, showcases the opportunities presented by the mid-market and supports our strategy to continue to focus on this segment.”
The company’s statement said the mid-market segment continues to be underserved and, following the success of The Bridges, Aldar will continue to develop mid-market residential products around its key destinations, specifically Reem Island and Yas Island. Aldar achieved stable occupancy above 90 per cent across its residential and office portfolio as well as Yas Mall. The hospitality portfolio recorded occupancy of 78 per cent, against the Abu Dhabi market of 70 per cent. This demonstrates the sustained demand for its high quality properties in sought-after locations. During the second quarter, twofour54 appointed Aldar to develop a new, permanent home as part of a Dh12 billion development on Yas Island. It is set to attract 5,000 working professionals from the media sector, further building the Yas Island community.
The Abu Dhabi’s developer said three key developments, Ansam, Al Hadeel and Nareel Island, are set for handover from Q4 2017, with construction entering final stages. Al Merief, Meera, Mayan, Yas Acres and West Yas are all progressing well and on track for their respective completion dates.
Aldar’s shares were trading in positive territory at around 11am on Thursday, up by 0.85 per cent to Dh2.36. — waheedabbas@khaleejtimes.com