Abu Dhabi: Aldar Properties on Tuesday announced its third quarter results, reporting revenue of Dh1.6 billion during the three-month period, an increase of seven per cent compared to last year.
The company’s revenue in the first nine months of the year was also up 12 per cent compared to last year, with the group announcing total revenue of Dh5 billion.
Results were more mixed in net profit, with the group reporting an 8 per cent drop to Dh387 million during Q3. Net profit was also down 12 per cent for the first nine months of the year compared to 2018, with the company reporting a net profit of Dh1.3 billion.
The company attributed the net profit drops on higher non-recurring income in 2018, primarily from government reimbursement payments for completed infrastructure delivered by Aldar.
Off-plan development sales in the third quarter saw an increase of 272 per cent to Dh1.1 billion, which the company said was largely driven by the successful launches this year of Lea and Alreeman II as well as sales on existing projects under development, including Yas Acres. Off-development sales for the nine months of the year was also up by 128 per cent to Dh3 billion.
“Aldar’s customer-centric business model continues to deliver sustainable, broad-based growth. Development sales have seen strong momentum this year following the successful launch of new projects,” said Talal Al Dhiyebi, chief executive officer of Aldar, commenting on the financial results.
“Robust demand from end users for our off-plan developments and infrastructure-enabled land plots is a positive sign for the Abu Dhabi real estate market and the wider economy,” he added.
“Our large portfolio of rental properties owned and managed by Aldar Investments is producing predictable income streams that provide the strong base for our dividend,” he said.
Al Dhiyebi said he was confident on an uptick in the property market, which he attributed to government led initiatives to attract investors.
“Overall, government policies are building momentum and positive sentiment in the Abu Dhabi economy that are meaningfully contributing to Aldar’s growing pipeline of business.”
Occupancy across Aldar’s investment properties including retail, commercial and residential was also positive standing at 90 per cent. The group’s hospitality portfolio was also up in the first nine months of the year to 75 per cent.