Aldar plans for new markets, property types
Dubai is one priority; Abu Dhabi will see expansion into warehousing, logistics
Abu Dhabi’s Aldar Properties is considering new territories — Dubai and Saudi Arabia — as well as the new categories of industrial and logistics assets to widen its revenue sources.
Dubai would be an obvious move given its joint venture with Emaar, announced earlier this year. The details regarding the alliance — committed to taking on Dh30 billion worth of projects — are being “finalised”, according to Greg Fewer, Aldar’s chief financial officer.
As per the initial plan, Aldar and Emaar will cooperate on a project apiece in Dubai and Abu Dhabi, at Emaar Beachfront in Jumeirah and on Saadiyat Island. But going further and into new property categories makes for interesting times.
Warehouses and logistics bases in Abu Dhabi tops the list of diversification opportunities, as does a move into data centres given the local economy’s growing reliance on digitisation.
No specific timelines were given, but Fewer said these would “light up” new income generating lines for the developer, which had until now focused on big-ticket residential, malls, offices and hotel concepts. “These are some sectors attractive from a growth perspective and we will pursue those and others,” he added.
Third quarter profits
Aldar yesterday announced gross profits of Dh581 million for the third quarter, made out of revenues of Dh1.5 billion. The third quarter brought better tidings on the profit side.
In the second quarter of 2018, it had reported Dh445.2 million; but there is still some way to go to catch up with the Dh715 million from the first quarter. Aldar’s revenues have remained more or less constant in each of these quarters, at Dh1.5 billion. Aldar officials were quick to point the consistency on the numbers being generated.
Talal Al Dhiyebi, CEO, said: “Our financial results for the quarter reflect the solid performance of our two core businesses, with gross profit steady year-on-year.”
Net profit for the third quarter was Dh420 million, an erosion from last year’s Dh601 million. Fewer said this had to do with the burden of higher interest rates and the fact that Aldar had less of the infrastructurerelated handover jobs it does for the Abu Dhabi Government.
“That’s (infrastructure works) winding down,” said Fewer, raising the need to tap into new income possibilities like industrial real estate and new markets. Net profits were also affected by higher depreciation charges, related to the acquisition of land and projects on Saadiyat Island.