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Abu Dhabi's Aldar reports 11.4% decline in H1 2018 net profit

H1 2017's higher bottom line included some “one-off government infrastructure handovers” and "other income not present in Q2 2018 results", a spokesperson told CW

Year-on-year net profit at Abu Dhabi’s Aldar Properties was 11.4% lower in H1 2018 when compared to same period in 2017.

According to the group’s Q2 financials, the development giant's H1 2018 net profit stood at $299.5m (AED1.1bn), an almost-11.5% difference compared to the H1 2017’s net profit figure of $343m (AED1.26bn).

A spokesperson for Aldar Properties told Constuction Week that H1 2017’s higher bottom line included some “one-off government infrastructure handovers” and “other income not present in Q2 2018 results”.

READ: Abu Dhabi's Aldar and Dubai's Emaar form $8bn property JV

Revenue for the first six months of this year stood at $816.7m (AED3bn), a 2% increase on the $789.5m (AED2.9bn) that the group reported for H1 2017.

Aldar said this figure was “driven by revenue recognition on developments under construction and recent asset acquisitions”, adding the group’s balance sheet “remains strong, with gross debt well in line with the established debt policy”.

The group added: “Occupancy remains healthy across the portfolio. Residential occupancy as of 30 June, 2018, stood at 91%, while occupancy in the commercial portfolio was 91% and Yas Mall was steady at 89%. The hospitality portfolio recorded occupancy of 74% during the first six months of 2018.”

This May, Aldar announced the acquisition of a selection of assets from Tourism Development and Investment Company (TDIC).

READ: Abu Dhabi’s Aldar Properties appoints new chairman, CEO

Assets purchased included residential projects on Saadiyat Island that are at reasonably advanced stages of construction.

“These high-quality projects expand Aldar’s pipeline of existing projects under development and contribute immediate revenue as construction progresses,” the developer said.

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Construction Week - Issue 741
May 11, 2019