Aldar reports net profit of $174.5m for Q1 2017
Aldar’s revenue grew 28% to ($430m) AED1.58bn, driven by developments under construction as well as land plot sales
Abu Dhabi-based real estate developer, Aldar Properties has announced a 39% increase in gross profit to ($205m) AED753m for the first quarter of 2017, up from $1475m (AED542m) in Q1 2016.
Aldar’s revenue grew 28% to $430m (AED1.58bn), driven by developments under construction as well as land plot sales. It also reported development sales of $272m (AED1bn).
The developer’s first quarter net operating income was $109m (AED402m), while net profit for the same period was $174.5m (AED641m).
Its development sales value of $272m (AED1bn) for Q1 2017 was led by West Yas, land plot sales and Al Nareel. All developments remain on track – Ansam, Al Hadeel, and Al Nareel are set for handover this year, a company statement said.
The developer awarded construction contracts worth $626m (AED2.3bn) year to date at Yas Acres and Mayan. In April, Aldar launched The Bridges, a six tower mid-market development comprising 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.
Commenting on the results, HE Mohamed Khalifa Al Mubarak, chief executive officer of Aldar Properties, said: "Demand for our high quality products in our key destinations has resulted in a robust performance this quarter. We delivered a 39% increase in gross profit and $272m (AED1bn) 3in development sales.
"Looking forward, our fully committed $816m (AED3bn) investment programme paves the way for future growth in recurring revenues.
“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."