File picture of an Aldar community model. The Pandemic did cast an impact on first-half 2020 results, but a strong second quarter run was some compensation. Image Credit: Gulf News Archive

Abu Dhabi: A solid second quarter ensured Aldar Properties managed to keep the overall decline in first-half numbers within limits. Half-year profits were at Dh786.6 million, down from Dh968.6 million last year - a decline that had a lot to do with COVID-19's impact on operations and sales.

The group had a revaluation loss on its investment properties of Dh173.1 million. “Due to the impact of COVID-19, management has reassessed the fair value of the major investment properties, mainly in the retail sector (in respect of the group’s malls) and residential properties,” Aldar said in a statement.

“The major areas covered were reassessing the financial performance, including estimates of future cashflows and earnings, the impact of temporarily suspending charge of rent and discounts provided to the affected retail tenants due to the closure.”

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Revenues for the period was up to Dh3.7 billion compared to Dh3.4 billion last year. Cash and cash equivalent stood at Dh1.8 billion, with Aldar holding assets worth Dh39.2 billion.

"Aldar’s development business had a stand-out quarter, adapting quickly to arrange innovative financing packages and to roll out digital solutions," said Talal Al Dhiyebi, CEO. "This drove growth in revenue and profits, and strong cashflow generation."

Second quarter boost

Aldar had a solid second quarter, with profits actually inching up to Dh484.2 million from Dh476.1 million. Revenues were also higher at Dh2 billion from last year’s Dh1.65 billion.

Investment assets take a dip

Aldar’s main drops during the first-half was from its investment properties. The group’s hospitality and leisure interests also saw a much steeper loss of Dh88.4 million.

Numbers were much more positive for Aldar’s property development and sales, with profits up at Dh633.6 million against Dh481.9 million last year.

Our prime investment properties continue to perform solidly... and we are looking at attractive opportunities to expand our diversified portfolio

- Talal Al Dhiyebi of Aldar Properties