Aldar Properties, a leading property development company in Abu Dhabi, UAE, has reported a 39 per cent increase in its gross profit for the first quarter ended March 31, 2017, which surged to Dh753 million ($205 million) from Dh542 million ($148 million) last year.
Announcing the three-month results, the Emirati developer said its revenue grew 28 per cent to Dh1.58 billion ($430 million), mainly driven by revenue recognition on its key projects under construction and land plot sales.
Its total development sales value soared to Dh1 billion ($272 million) led by the demand for its villa community West Yas and mixed-use project Al Nareel in Abu Dhabi besides the successful key land plot sales.
On its major Q1 initiatives, Aldar said it had launched a Dh3 billion ($816 million) investment programme for the growth of recurring revenues.
This led to its recurring revenue net operating income hit Dh402 million ($109 million) for the first three months of 2017, while its net profit for the quarter rose to Dh641 million ($175 million).
The Abu Dhabi developer said work was progressing as per schedule at all its major developments - Ansam, Al Hadeel and Al Nareel - and due for handover this year.
For the first three months, Aldar had awarded Dh2.3 billion ($626 million) worth of construction contracts for its Yas Acres and Mayan projects.
In April, Aldar had launched The Bridges, a six tower mid-market development including 1,272 units. Three towers will form part of the recurring revenue investment plan while the remaining three have been launched for sale and subsequently sold out, it stated.
Commenting on the results, CEO Mohamed Khalifa Al Mubarak said: "Demand for our high quality products in our key destinations has resulted in a robust performance this quarter. We delivered a 39 per cent increase in gross profit and Dh1 billion in development sales."
Yas Mall, he stated, maintained strong occupancy with 95 per cent units trading as of March 31, 2017. "The residential and office portfolio occupancy was at 90 per cent and 95 per cent respectively as of March 31, 2017.
On its hospitality projects, the top official said the hotel portfolio occupancy for the first three months stood at 84 per cent, ahead of the wider Abu Dhabi market occupancy figure of 76 per cent.
Aldar had committed Dh1.9 billion ($517 million) for an investment programme during the quarter with four new assets announced.
“Looking forward, our fully committed Dh3 billion ($816 million) investment programme paves the way for future growth in recurring revenues," remarked Al Mubarak.
"Our latest development, The Bridges, sold out in three weeks demonstrating real demand for the right product at the right price. There is strength in the Abu Dhabi market," he added.-TradeArabia News Service
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