Aldar profit rises on acquisition
dubai — Aldar Properties reported on Tuesday net profit of Dh668 million for the first quarter of 2018, up 4 per cent from Dh641 million in the same quarter last year, reflecting a strong start to the year.
In a statement on Tuesday, the Abu-Dhabi based property developer said that its revenues in the first quarter were virtually flat at Dh1.5 billion versus Dh1.58 billion a year ago.
The property giant, which recently announced Dh3.7 billion acquisition of assets from Tourism Development & Investment Company, providing growth for both the development and asset management business, said development sales for the quarter were Dh681 million, driven by sales of existing developments under construction, with over 80 per cent of all projects under development sold as at March 31, 2018.
Talal Al Dhiyebi, chief executive officer of Aldar Properties, said the company started 2018 strongly with the announcement of an historic partnership with Emaar to develop the next era of iconic real estate destinations.
“The initial Dh30 billion pipeline of projects, including Saadiyat Grove in Abu Dhabi and Emaar Beachfront in Dubai, is just the start of this partnership, which will enhance our country’s reputation as a destination of choice for residents and tourists alike. Our launch of a boutique development on Reem Island — Reflection — shows the continued momentum in our development business, which recorded sales of Dh681 million during the quarter, while our asset management business also continued to deliver a resilient performance,” said Al Dhiyebi.
He said the acquisition of assets from TDIC last week, including a portfolio of assets in the prime Saadiyat Island destination, as well as the launch of Alghadeer in April, cements the developer’s reputation “as Abu Dhabi’s leading real estate developer and asset manager and underlines the scale of our ambitious plans for future growth.”
“We continue to see an active and healthy off-plan market,” Greg Fewer, Aldar’s chief financial officer, said on a media call, adding that the recent acquisition of some assets in Abu Dhabi would add to the company’s earnings.
Aldar has a capital expenditure programme of Dh5.4 billion for the next 2 years and could increase
We continue to see an active and healthy off-plan market Greg Fewer, chief financial officer, Aldar
this, it said earlier this year. The company is also on track to “successfully” refinance its dollar sukuk due in December, Fewer said. In March, Aldar won approval from shareholders to increase foreign ownership in the company to 49 per cent from 40 per cent.
At the end of the quarter, Aldar launched Reflection, a boutique development on Reem Island, consisting of 374 units and offering investors and owner occupiers the opportunity to secure high quality homes in a prime location.
The company said aside from off-plan launches, construction is progressing well at all key developments under construction. “Handovers at Ansam and Al Hadeel, which commenced in the last quarter of 2017, are complete. Handovers have now commenced on Al Merief and Nareel Island, as planned. West Yas, Aldar’s first villa community on Yas Island is entering the final stages of construction and will be handed over in second quarter.” During the quarter, Aldar awarded Dh1.3 billion in construction contracts in respect to the 2,255 unit Water’s Edge development on Yas Island.
In April, Aldar launched a multiuse development on the border of Abu Dhabi and Dubai, enhancing its established destination at its Seih Al Sdeirah landbank, Alghadeer. Launched ahead of Cityscape Abu Dhabi, the Alghadeer community will be complemented by office and retail space as well as hospitality, education and community amenities, in line with Aldar’s strategy to create complete communities. Aldar has already sold two of the land plots for community services including a school and retail outlets.
— issacjohn@khaleejtimes.com