Dubai: Aldar Properties posted a 194 per cent increase in net profit that totalled Dh453 million in the first three months against Dh154.3 million a year ago, aided by handover of government projects, including infrastructure, as well as residential units to investors. Another plus on the latest financials were recurring revenues from the hospitality and investment property.
The share price was up 15 fiIs on Monday to Dh4.03 on a volume of 56.66 million.
Revenues for the first quarter were Dh1.719 billion, up 6 per cent from last year. “We are seeing impressive sales and leasing activity, debt has been reduced by the repayment of Dh2.8 billion in loans,” said Abu Bakr Seddiq Al Khoury, chairman. “And we are on track to meet synergy savings for the merger [with Sorouh].”
In a statement, Aldar confirmed it is on track to meet “synergy estimates that are derived principally from operational efficiencies and interest savings on acquired debt” post-merger.
Since the start of the year, Aldar has repaid Dh2.8 billion (20 per cent of gross debt) of loans on receipt of Dh3.5 billion in contractual payments from the Abu Dhabi Government. This is “significantly deleveraging the business and demonstrating its commitment to managing debts to target levels”.
Operationally, things could get better with the second-quarter numbers; three projects were launched last month with a combined development value of Dh5 billion. “We are also assessing 20 other projects as we look to monetise Aldar’s extensive land bank and continue to create value for our shareholders,” Al Khoury said.
According to Robin Teh, country manager at Chesterton International, “there is certainly an anticipation and appetite for new and upcoming Aldar projects. It comes from investors appreciating the quality of the delivered projects, especially those in Al Raha Beach. Aldar’s status in Abu Dhabi is unmatched and is on par with what is enjoyed by one or two of the leading master-developers in Dubai.”
Two of the launches — Ansam on Yas Island and Al Hadeel at Al Bandar on Al Raha Beach — are located in investment zones and open to purchase by non-UAE citizens. The third, Nareel Island, will be an upscale community for UAE nationals to build bespoke villas.
Off-plan sales for all three begin later this month, while construction is scheduled for next year.
Later this year will come another development, Yas Mall, which will build up the recurring revenues. “Tenants continue their fit-out work at Yas Mall, and the development is on-track for opening in November,” the statement said.
