Aldar Properties posts record Dh2.35B in development sales

Aldar recently announced that it sold out land plots at the second phase of Al Gurm, the luxurious and secluded beachfront community on the southwest side of Abu Dhabi’s main island.
Aldar recently announced that it sold out land plots at the second phase of Al Gurm, the luxurious and secluded beachfront community on the southwest side of Abu Dhabi’s main island.

Dubai - Net profit spikes 35% year-on-year to Dh1.06B in first half



by

Alvin Cabral

Published: Wed 11 Aug 2021, 10:38 PM

Last updated: Wed 11 Aug 2021, 10:41 PM

Aldar Properties on Wednesday reported its financial results for the first half of 2021, with second-quarter development sales at Dh2.35 billion, the highest-ever the developer has recorded for a three-month period.

This brought total sales in the first half to Dh3.4 billion and revenue backlog to Dh4.25 billion for the Abu Dhabi company.

On an annual basis for the second quarter, revenue, gross profit and net profit were up nine per cent, 15 per cent and eight per cent at Dh2.19 billion, Dh824 million and Dh521 million, respectively. For the first half, those segments leapt 12 per cent, 13 per cent and 35 per cent to Dh4.23 billion, Dh1.60 billion and Dh1.06 billion, respectively.

“Aldar’s diversified businesses have achieved significant uplift in activity over the last 12 months. Development launches have ramped up, third-party management fees have climbed as projects gathered pace, and our education and property management businesses have built considerable scale,” CEO Talal Al Dhiyebi said in a statement.

Aldar’s Development unit recorded a 10 per cent increase in gross profit to Dh444 million. Its Investment arm, meanwhile, posted a 23 per cent rise in recurring net operating income to Dh375 million.

The group maintained its strong liquidity position with Dh4.45 billion of unrestricted cash and dh4.5 billion of undrawn committed facilities will fuel sustainable and long-term growth opportunities.

Expatriate homeowners and foreign investors represent 42 per cent of total Aldar buyers. Cash collections were up 36 per cent annually to Dh1.06 billion, primarily driven by handover collections across Mamsha, Yas Acres, West Yas, Water’s Edge and Nareel.

The company's investment properties portfolio reported a five per cent annual increase in net operating income to Dh308.6 million. Occupancy across diversified properties was stable at 88 per cent. Its residential portfolio reported a marginal 0.4 per cent growth in net operating income, with occupancy increased up at 89 per cent.

Aldar's retail segment operating income jumped 17.7 per cent mainly due to higher footfall and sales, reflecting improving consumer sentiment and purchasing power. Occupancy held firm at 86 per cent and is expected to be supported by progression of handovers related to the Yas Mall redevelopment plan.

Commercial portfolio operating income declined 0.5 per cent, but underlying office occupancy held firm at 90 per cent. The hospitality and leisure unit is recovering with a 79 per cent growth in operating income.

Aldar Education, on the other hand, reported a 208 per cent improvement in operating income to Dh49.4 million, driven by a 16 per cent increase in student numbers to 21,983.

Revenue for its Project Management Services business, meanwhile, increased 58 per cent Dh366.7 million in the second quarter, with gross profit leaping 192 per cent to Dh107.9 million.

Aldar is also leading a consortium of investors that submitted a non-binding offer to acquire a majority stake in one of Egypt’s listed leading real estate development companies, Sixth of October Development and Investment Company.

— alvin@khaleejtimes.com


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