Abu Dhabi's Aldar posts $708m profit as 2018 revenues grow 3%
Billion-dirham dividend announced as CEO lauds creation of region's "largest diversified real estate investment" outfit
Abu Dhabi developer Aldar Properties has posted $1.7bn (AED6.3bn) in revenues for 2018, up 2% on 2017 figures, boosted by asset acquisition and the collection of final payments.
The Abu Dhabi development giant reported a gross profit figure of $707.8m (AED2.6bn), with $435.6m (AED1.6bn) of net operating income from recurring assets up by 3% during the same period.
Aldar grew its portfolio by 9% through the acquisition of new assets, with its hospitality portfolio steady at 74% occupancy in 2018.
In light of the group’s strong performance, Aldar’s board has recommended a 14 fils per share dividend for 2018, marking a 17% increase on 2017 and the sixth consecutive year of growth.
“The proposed total dividend payout of [$299.5m] AED1.1bn reflects the quality of Aldar’s recurring revenue assets that contributed the majority of the dividend, with growth supported by development handovers and collection of final payments,” the developer said in a statement.
Speaking on the figures, Talal Al Dhiyebi, chief executive officer of Aldar Properties, said: “2018 was a transformational year with a series of game changing corporate actions. We completed one of the largest real estate transactions in the UAE’s history and created the region’s largest diversified real estate investment company.
“We are extremely confident, starting 2019 with powerful momentum from the incredible response to the launch of Alreeman. With a positive shift in sentiment, strong liquidity in Abu Dhabi and the long-term health of our real estate market, we are optimistic about the year ahead.”
The figures come amid a busy start to the year for the Abu Dhabi developer. Aldar launched its $544.5m (AED2bn) mixed-use development, Alreeman, in near Abu Dhabi International Airport in January 2019.