Abu Dhabi giant reports 7% drop in net profit as a result of higher non-recurring income
Chief executive officer of Aldar Properties, Talal Al Dhiyebi, has said government policies have helped drive a 14 percent year-on-year increase in gross profit to $180 million (AED662m) in the third quarter of 2019.
The property development, management and investment company revealed that revenue increased seven percent to $436m (AED1.6 billion) compared to $408m (AED1.5bn) in Q3 2018.
Al Dhiyebi said: “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.”
However, net profit was down eight percent to $105m (AED387m) compared to the same period last year as a result of higher non-recurring income in 2018, “primarily from government reimbursement payments for completed infrastructure delivered by Aldar,” said a statement from the company.
Development management gross profit is up 29 percent to $69.4m (AED255m), fuelled by project launches such as Lea and Alreeman II.
While asset management net operating income (NOI) is up four percent to $108m (AED397m), supported by the addition of Etihad Plaza, Etihad Airways Centre and Al Jimi Mall extension.
Al Dhiyebi added: “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.
“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.”
Development sales grew 272 percent to $299.2m (AED1.1bn) in Q3 and 128 percent to $816.9m (AED3bn) in the first nine months of the year.
The company revealed that it has tripled student numbers across its network, over the past two years, to 22,000 for the 2019/20 academic year.
In terms of hospitality, occupancy rates to the first nine months of the year reached 75 percent, compared to 71 percent in the same period of 2018.
Source: Arabian Business
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