Aldar gross profit surges 8% to Dh3b

Aldar Group reported on Sunday a 17 per cent increase in revenue to Dh8.4 billion and an eight per cent increase in gross profit to Dh3 billion driven by record development business performance in 2020.

The group recorded a net profit of Dh1.93 billion, driven by a 28 per cent growth in Q4 net profit.

In a statement, the company said its development business delivered record revenues and gross profit while investment portfolio holds firm amid Covid-19 challenges.

The group also said it managed and delivered Dh50 billion worth of projects over 3-5 years, with Dh40 billion in recent agreement with Abu Dhabi government.

The developer said it had maintained a consistent and transparent approach to dividend with recommended cash distribution of Dh1.14 billion, or 14.5 fils/share for 2020

Mohamed Khalifa Al Mubarak, chairman of Aldar Properties, said Abu Dhabi has successfully navigated the considerable challenges of the global pandemic and is now moving into recovery.

“A rapid and globally pioneering approach to promoting health and safety has been backed by the Emirate’s financial strength and the Government’s proactive support of our communities. This effective combination has underpinned the long-term fundamentals of the economy and sustained investor confidence in the real estate sector.”

Al Mubarak said Aldar has reinforced its position as the trusted partner for public-private collaboration on strategic real estate and infrastructure investment in 2020. “I am proud that Aldar’s robust balance sheet and best-practice governance ensure that the company will be an important driver of Abu Dhabi’s growth in the coming years.”

Talal Al Dhiyebi, group chief executive officer of Aldar, said a powerful performance in 2020 has set the tone for a new phase of sustainable growth. “We have adopted a new operating model to propel the company to the next level in terms of scale and breadth of activity and to meet our ambitious sustainability targets. This will involve a major programme to accelerate the recycling of capital and to invest in expansion.”

Al Dhiyebi said Aldar is the trusted partner in the transformation of Abu Dhabi’s real estate sector, in alignment with the emirate’s plans for investment and economic diversification. “We are highly appreciative of the Government’s decisive management of the Covid-19 challenges and its leadership in setting a clear ambition for recovery and future growth.

Aldar Development, the group unit responsible for developing Aldar’s 70 million sqm land bank, recorded a 60 per cent surge in revenue to a record Dh4.96 billion. Fourth-quarter revenues increased 53 per cent year on year to Dh1.6 billion driven by handovers, inventory sales and recurring high-margin income from the third-party development management business. Gross profit for the business reached a record Dh1.4 billion in 2020, up 31 per cent.

The group’s Aldar Investment unit demonstrated notable resilience amid challenging macro-economic conditions and lockdowns during the year, drawing on its key strengths: robust governance, active asset management by a highly professional team and a well-diversified portfolio of assets. Total net operating income for the business was Dh1.58 billion in FY 2020, a decline of just 7.0 per cent year on year.

issacjohn@khaleejtimes.com