Aldar Properties today reported a 14 percent year-on-year increase in gross profit to AED662 million in the third quarter of 2019. Also, the company's revenue increased 7 percent to AED1.60 billion compared to AED1.50 billion in Q3 2018
ABU DHABI, (Pakistan Point News - 12th Nov, 2019) Aldar Properties today reported a 14 percent year-on-year increase in gross profit to AED662 million in the third quarter of 2019. Also, the company's revenue increased 7 percent to AED1.60 billion compared to AED1.50 billion in Q3 2018.
Development Management recorded 20 percent growth in revenue to AED642 million, off-plan development sales increased 272 percent to AED1.1 billion, and solid performance from the Asset Management business, with Net Operating Income, NOI, increasing by 4 percent to AED397 million, said Aldar press release on Tuesday.
Gross profit increased 14 percent to AED662 million compared to AED581 million in Q3 2018. Net profit decreased 8 percent to AED387 million compared with AED420 million in Q3 2018, due to higher non-recurring income in 2018, primarily from government reimbursement payments for completed infrastructure delivered by Aldar.
A US$500 million Sukuk issuance by Aldar Investments in mid-October was six times oversubscribed and received strong demand from international investors. The transaction served to extend the duration of Aldar’s debt liabilities and reduce financing costs.
During the nine months of 2019 revenue increased 12 percent to AED5.03 billion compared to AED4.48 billion during the same period in 2018. Gross profit increased 6 percent to AED2.05 billion while it was AED1.94 billion in 9m 2018.
Net profit decreased 12 percent to AED1.36 billion compared to AED1.53 billion during the nine months of 2018, due to higher non-recurring income in 2018, primarily from government reimbursement payments for completed infrastructure delivered by Aldar. Off-plan development sales increased 128 percent to AED3.0 billion, and Asset management NOI increased 6 percent to AED1.22 billion Commenting on the financial results, Talal Al Dhiyebi, CEO of Aldar, said, "Aldar’s customer-centric business model continues to deliver sustainable, broad-based growth. Development sales have seen strong momentum this year following the successful launch of new projects. Robust demand from end-users for our off-plan developments and infrastructure-enabled land plots is a positive sign for the Abu Dhabi real estate market and the wider economy.
He concluded, "Meanwhile, our large portfolio of rental properties owned and managed by Aldar Investments is producing predictable income streams that provide the strong base for our dividend. Overall, government policies are building momentum and positive sentiment in the Abu Dhabi economy that are meaningfully contributing to Aldar’s growing pipeline of business."
