Abu Dhabi: Abu Dhabi’s Aldar Properties recorded Dh1.76 billion in revenues for the first three months, and unchanged from last year. But net profit dropped 39 per cent to Dh302 million from last year.
The asset management side of the business saw profits taking a hit from the COVID-19 outbreak.
“Aldar continues to prudently manage its business to mitigate the impact of the global crisis and enhance long-term value for our stakeholders,” said said Talal Al Dhiyebi, CEO. “We benefit from the financial firepower to weather the current global crisis, and to take advantage of attractive opportunities to expand our investment portfolio.”
The developer’s residential and commercial property occupancy levels were at 88 and 91 per cent respectively, while those in its retail assets were at 89 per cent. The hospitality and leisure portfolio saw a loss of Dh19.7 million, brought on by the virus, with hotel occupancy at 64 per cent.
But on the development side, Aldar had a 13 per cent gain in revenues to Dh808 million. Projects included government contracts valued at Dh 5 billion.
Sales totaled Dh333 million for the period. By the end of first quarter, Aldar had sold 83 per cent across it offplan pipeline.
Sticking to payment promises
Aldar earlier this month had confirmed that it would abide to scheduled payments of Dh4 billion to contractors and suppliers.
“We were able to tackle rapidly evolving conditions, while remaining steadfast in paying a 2019 dividend of Dh1.14 billion and delivering a strong first-quarter performance,” Al Dhiyebi added.
On how the current market conditions might impact on launches, Grew Fewer, Chief Finance Officer, said the company was assessing the timings on such plans.
“We haven’t launched any new projects in the first quarter of the year, and at this time, we’re reassessing the phasing of the planned launches that we have,” he said. “We’ve got extremely important destinations and developments that we absolutely intend to bring onto the market.
“We’ve already announced our intentions to launch at The Grove on Saadiyat. That will happen.”
Aldar’s cash balance also remained strong for the period, with Dh6.8 billion of free cash and undrawn credit facilities.