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Aldar 2019 net profit surges 7pc to Dh1.98b

Issac John /Dubai
Filed on February 12, 2020

(Supplied)

Aldar Properties, Abu Dhabi's biggest listed developer, posted on Wednesday a seven per cent year-on-year jump in 2019 net profit to Dh1.984 billion, driven by growth across both its development and asset management businesses.

The company's Board of Directors recommended a cash dividend of Dh0.145 per share, representing a four per cent growth on 2018's dividend of Dh 0.14 per share.

For the fourth quarter, the developer reported an 81 per cent surge in net profit to Dh577 million as the quarterly revenue jumped 17 per cent to Dh2.1 billion, the company said in a filing to the Abu Dhabi Securities Exchange.

Mohamed Khalifa Al Mubarak, Chairman of Aldar, said Abu Dhabi's real estate market is benefitting from an economy that is transitioning to a global cultural, business and trade hub thanks to government investments and newly introduced pro-business policies.

"As a leader in the real estate market, Aldar has been able to swiftly convert those emerging opportunities to generate additional value for our shareholders. Looking ahead, our unique portfolio of investment properties and valuable land bank will enable us to continue to deliver attractive returns to our shareholders," said Al Mubarak.

Talal Al Dhiyebi, CEO of Aldar, said as the Abu Dhabi Government's fiscal growth programmes take effect, we are seeing clear signs of growth in key segments of the real estate market.

"The improving operating environment is feeding into Aldar's performance, through a 53 per cent increase in development sales, a 30 per cent increase in hospitality profit, and an 80 per cent rise in profit from Aldar Education. We remain confident in our platform's ability to grow and deliver sustainable returns to our shareholders," said Al Dhiyebi.

The focus of Aldar's development strategy will centre around its key locations such as Yas Island and Saadiyat Island, which benefit from well-developed infrastructure already in place, the company said.

"A land exchange with the Abu Dhabi Government in December 2019 enhanced Aldar's prime position in the Saadiyat Cultural District, which is central to Abu Dhabi's emergence as a regional business hub and high-end lifestyle and cultural destination," Aldar statement said.

Aldar recorded 53 per cent surge in development sales to Dh4.0 billion in 2019, driven by new development launches (Alreeman, Alreeman II, Lea and Saadiyat Reserve) as well as strong sales across existing developments (Yas Acres, Wes Yas and Mamsha). The backlog of development revenue to be recognised in future grew to Dh4.4 billion at the end of 2019 (31 Dec 2018: Dh 4.2 billion)

Aldar said it was awarded Dh 5.0 billion of projects by the Government of Abu Dhabi, including infrastructure works on Saadiyat Island, a new campus for twofour54 on Yas Island and the Al Falah national housing project

In 2019, net operating income from recurring income assets of Dh1.7 billion, up to six per cent year on year, driven by the value-accretive additions of Etihad Plaza, Etihad Airways Centre and the Al Jimi Mall extension.

- issacjohn@khaleejtimes.com

author

Issac John

Editorial Director of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.


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