Aldar Properties holds steady as it reports Dh1.76bn first-quarter revenue
Aldar Properties, Abu Dhabi’s biggest listed developer, reported Dh1.76 billion in revenue for the first quarter of 2020, unchanged from the same period a year ago, despite the coronavirus pandemic.
Revenue from Aldar’s development management business climbed 13 per cent year-onyear to Dh808 million, driven by progress on recently awarded government projects valued at Dh5bn, including the new twofour54 campus on Yas Island.
“The company’s strength lies in a well-balanced, diversified business model and a robust balance sheet,” said Talal Al Dhiyebi, chief executive of Aldar.
“We benefit from the financial firepower to weather the current global crisis, and to take advantage of attractive opportunities to expand our investment portfolio.
“Aldar continues to prudently manage its business to mitigate the impact of the global crisis and enhance long-term value for our stakeholders.”
Profit fell 39 per cent to Dh302m during the period. This was attributable to higher provisions, impairments and write downs and loss on revaluation of investment properties, the company said in a statement to the Abu Dhabi Securities Market, where its shares are traded.
Provisions, impairments and writedowns more than doubled to Dh33.2m and loss on revaluation of investment properties rose to Dh135m in the first quarter from Dh40m during the same period last year.
Development sales totalled
Dh333m led by inventory sales, according to the company.
Aldar held Dh6.8bn of free cash and undrawn credit facilities at the end of the first quarter including a new
Dh500m credit facility. This month Aldar increased its support to property, education and retail customers to Dh190m to supplement the government’s efforts to soften the blow of the coronavirus pandemic on the emirate’s economy.
The developer also set aside Dh4bn to make sure its contractors, suppliers and consultants are paid on time.
It also partnered with banks in Abu Dhabi to offer home finance at low-interest rates at some of its developments in the capital.
The company teamed up with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and First Abu Dhabi Bank to offer finance at a fixed rate of 1.99 per cent for three or five years with no application or valuation fees.
The UAE, the second-biggest Arab economy, was the first in the region to introduce Dh282bn in fiscal and monetary support, including a Dh256bn package for banks that provided zero-interest funding and freed up capital to boost lending in the country.
“We are in a strong position to navigate these uncertainties because of our diversified business model, low debt, strong cash position and underlying strength of Abu Dhabi’s economy,” said Greg Fewer, Aldar’s chief finance and sustainability officer.
The company plans to revisit its sales guidance of Dh4bn for 2020 because of the Covid-19 crisis, he added.
“We’ve got extremely important and exciting destinations and developments that we absolutely intend to bring onto the market,” Mr Fewer said.
“We’ve already announced our intention to launch The Grove at Saadiyat that will happen. We are just assessing the market right now to launch the project at the correct time. We’ve also got exciting middle income opportunities.”