Abu Dhabi: Aldar Properties posted a 3.8 per cent decrease in net profit for the first half of 2017 when compared to the same period last year in a challenging property market. Net profit fell to Dh1.26 billion in the first six months of the year from Dh1.31 billion during the same period last year, Aldar said in a statement on Thursday.
The revenue for the first half remained flat at Dh2.93 billion while second quarter revenues were down by about 20 per cent at Dh1.35 billion compared to Dh1.69 billion in the second quarter of 2016.
The second quarter, meanwhile, saw the developer reaping net profit of Dh620 million against Dh654 million in the same period last year.
“Aldar has delivered a solid set of results for the first half of the year. Robust occupancy across our portfolio of investments demonstrates our resilience as an asset manager and the success of our most recent residential development, The Bridges, clearly shows there is strength in the Abu Dhabi property market,” Mohammad Khalifa Al Mubarak, CEO of Aldar Properties, said in a statement.
“The unprecedented response to The Bridges, which sold out in a matter of weeks, showcases the opportunities presented by the mid-market and supports our strategy to continue to focus on this segment.”
In April, Aldar launched its 1,272-unit, Dh1.3-billion mid-market residential development, The Bridges, on Reem Island, with all three towers released to the market being sold out in weeks. This contributed to Aldar’s Dh1.8 billion of development sales value during the first six months of 2017.
During the second quarter, twofour54 appointed Aldar as the strategic real estate partner of the Abu Dhabi Media Zone Authority, to develop a new, permanent home as part of a Dh12 billion development on Yas Island. The media zone is set to attract 5,000 working professionals from the media sector once the project is completed.
Al Mubarak said Abu Dhabi Government’s unveiling of a Dh12 billion development plan for Yas Island will accelerate its transformation into a global urban, entertainment and business hub.
The company also announced that its three key developments — Ansam, Al Hadeel and Nareel Island — are set for handover from fourth quarter this year, with construction entering final stages.
Al Merief, Meera, Mayan, Yas Acres and West Yas are all progressing well and on track for their respective completion date, according to Aldar.
Four new investments were committed during the first six months of 2017, completing Aldar’s Dh3 billion investment programme.
Mid-market
Talal Al Dhiyebi, chief development officer of Aldar Properties, told reporters in a conference call on Thursday that they would be looking at launching more projects to cater to the mid-market segment. “There is a strong market for mid-market housing. People are looking at affordable housing with good facilities and want to invest in that segment.”
The company is not looking to expand outside Abu Dhabi currently but is open to opportunities, he added.
