Threefold increase in Aldar's net profit
Handovers and sales boosted property developer's revenues for Q1
Abu Dhabi’s Aldar Properties has announced that it nearly tripled its net profit for the first quarter of the year.
The company posted a net profit of $123.3mn (AED453mn) for Q1, up by 194% from the same period of 2013.
The company attributed the growth to the continued handover of infrastructure and units to the government, handover and sales of residential developments and higher recurring revenues from the merged company’s hospitality and investment property portfolio.
Aldar also said that since the start of 2014, it repaid $762.3mn (AED2.8bn) of loans, representing 20% of its gross debt, after receiving $952.9mn (AED3.5bn) in contractual payments from the government of Abu Dhabi.
"I am pleased to report a strong start to the year. We are seeing impressive sales and leasing activity, debt has been reduced by the repayment of $762mn (AED2.8bn) in loans and we are on track to meet synergy savings for the merger,” said Abubaker Seddiq Al Khoori, chairman of Aldar Properties.
"In April, we embarked on the next phase of Aldar 's development story with the launch of three new developments with a combined gross development value of approximately $1.36bn (AED5bn). We are also assessing 20 other development projects as we look to monetise Aldar 's extensive land bank and continue to create value for our shareholders."
Abu Dhabi’s real estate market is seeing a “rebound” in residential activity over the past 12 months, driven both by government intervention and positive economic growth.
Last month, Aldar announced three new projects - Ansam, Al Hadeel and Nareel Island – which have a combined development value of $1.36bn (AED5bn).