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Aldar records Dh601m in net profits for Q3-17

Abu Dhabi developer taps significant demand for ‘Dh1m, two-bedroom’ homes

  • The headquarters of Aldar Properties in Abu Dhabi. Image Credit: Abdul Rahman/Gulf News Archives
  • Water's Edge development on Yas Island.Image Credit: Aldar
Gulf News

Abu Dhabi’s Aldar Properties will continue to mine mid-market opportunities after “hitting a rich vein” with two-bedroom apartments priced at Dh1 million, according to a top official. This will include “multiple price points” across the land that it currently owns. “There is an under supply of mid-market options in Abu Dhabi and that opportunity is waiting to be exploited,” said Greg Fewer, Chief Financial Officer.

Its recent mid-market offering, Water’s Edge on Yas Island, proved an instant hit on its September launch, and instrumental in overall offplan sales totalling Dh604 million in Q3-17. For the first nine months, Aldar’s tally on this score was Dh2.4 billion.

The developer reported revenues and net profit of Dh1.38 billion and Dh601 million in the July to end September period. The net profit comes in lower than Q3-16’s Dh737 million.

But the Q3-16 numbers were boosted by a “one-off gain recorded from a number of land sales made to the Abu Dhabi Government, including one at Al Raha Beach,” said Fewer. Excluding that one-off, the Q3-17 numbers - revenue and gross profit - gained in high double-digit terms.

Aldar on Monday (November 13) also confirmed Mohammad Khalifa Al Mubarak as its new Chairman after being its CEO, while Talal Al Dhiyebi takes over the chief executive’s mantle.

On the results, Fewer said Aldar continues to outperform the wider Abu Dhabi realty market in occupancy for its office and retail assets, with the former at 90 per cent plus. Its residential assets currently turn in an occupancy of 91 per cent. At a time when the leasing market across the emirate remains under intense pressure, Aldar’s occupancy levels provides significant “defensive strength”, said Jasim Busaibe, Chief Asset Management Officer.

The Abu Dhabi developer also confirmed that it will be taking ownership of the International Tower, and that details regarding the cost will be announced before the year is out. The office high-rise is located in the Capital Gate area, and where Aldar had last year bought another office property - Daman House - with full occupancy.

“The new transaction will start providing income from our Q4-17 results,” said Fewer.

In a statement, Al Mubarak, Chairman, said: “Our asset management business delivered a resilient performance during the quarter and we are pleased to be acquiring International Tower. Aldar continues to assess the market for other attractive acquisition opportunities in line with our commitment to drive growth of long-term recurring revenues.”

At its hospitality interests, latest occupancy is 76 per cent, and that is 8 per cent higher than the city-wide average. At its flagship Yas Mall, occupancy remains steady at 93 per cent.

But it’s on development sales that Aldar continues to hit pay dirt. There will be further sales releases at Water’s Edge, a Dh2.5 billion development that will eventually see more than 2,200 residences,

Yas Island will also be where the listed company is going to start handovers shortly. The Ansam and Al Hadeel communities are on schedule to be handed over to customers by year-end, while Nareel, West Yas and Al Merief are in their final stages of construction and for hand over early next year.

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