Dubai: Aldar Properties sprang a surprise on the real estate market with a 30 per cent gain in third quarter revenues, to total Dh2.1 billion, while gross profit was up 5 per cent to Dh696 million. At a time when the wider property market is wracked by pandemic concerns, Aldar's numbers will do just fine.
Net profit too ended with positive gains, up 8 per cent to Dh416 million. What Aldar and its shareholders will look closely at is the Dh1.2 billion notched up via a 7 per cent year-on-year increase in development sales. That brought the year-to-end-September sales tally to Dh2 billion, with "Saadiyat Island and Yas Island continuing to attract investors and end-users".
Plus, the developer is loaded with Dh2.5 billion in "free cash" and Dh4 billion of undrawn credit facilities as at end September.
Dh3.1billionYear-to-date cash collections by Aldar for units handed over and those under development
More to come
It's going to be full steam ahead, according to top officials. "Given the company’s balance sheet strength and robust cash position, Aldar continues to actively pursue opportunities to invest in both our development pipeline and in expanding our investment portfolio," said Talal Al Dhiyebi, CEO.
For the first nine months, revenues were up 17 per cent to Dh5.83 billion, but net profit slipped 11 per cent to Dh1.2 billion. In another number that will reassure shareholders, Aldar said its occupancy across its investment portfolio was at 87 per cent during these nine months, down from 91 per cent a year ago. But given the circumstances set off by the COVID-19, such a decline is viewed as marginal by the market.
"Strong sales at our prime developments reflects sustained investor confidence in Abu Dhabi’s real estate fundamentals," the CEO added. "Aldar is proud to be partnering with the Abu Dhabi Government as it invests further in strategic capital projects.”
Aldar is in line to "earn steady income from third-party development management", which has been boosted by the take over late last month of Dh30 billion worth of of Abu Dhabi Government owned projects.
Aldar allocated Dh60 million to support residential buyers and tenants through various home finance options, rent-to-own schemes, monthly rental payment plans and staggered rental payment. Over 330 residential buyers have taken advantage of the subsidized mortgage offer, which combined support unit purchases in excess of Dh1 billion.