Business Bureau, Gulf Today

Aldar Properties, Abu Dhabi’s leading property development, management and investment company, has reported a 15% year-on-year increase in revenue to Dhs3.42 billion in the first half of 2019.

Talal Al Dhiyebi, Chief Executive Officer, Aldar Properties commented:  “There is an upswing in sentiment towards Abu Dhabi‘s real estate market with the recent announcement of our Dhs9 billion worth of development projects since the start of 2019. Those, coupled with government initiatives to spur economic growth, are having a positive multiplier effect on the wider Abu Dhabi economy and stirring confidence. This is reflected in our strong performance for the period, underpinned by near Dhs2 billion in off plan sales. Also, we are investing wisely, extracting more value from our investment portfolio, which is contributing to our growth. The wheels of change are in motion and Aldar is well positioned and well-funded to capitalise on emerging opportunities.”

Revenue for H1 2019 increased 15% to Dhs 3.42 billion vs. Dhs 2.98 billion in H1 2018, driven by activity on key developments under construction.

Gross profit for H1 2019 increased 2 per cent to Dhs 1.39 billion vs. Dhs 1.36 billion in H1 2018.

Solid net profit in H1 2019 of Dhs 969 million driven by strong performance of core business operations, down 13% from H1 2018, primarily owing to legacy one off income events in H1 2018. As at 30 June 2019, the balance sheet remains robust with cash plus available and undrawn liquidity lines of Dhs 7.3 billion

Aldar’s development arm reported a robust first half performance, delivering on its strategy of activating its land bank to meet the evolving demand trends and to deliver and sell projects at competitive prices, high quality and on time:

New projects launched since the start of the year have a total development value of Dhs9 billion (Dhs4 billion between Alreeman I, II and Lea; Dhs5 billion from Government awarded contracts)

In H1 2019, off-plan development sales totalled Dhs 1.9 billion, up 78% versus H1 2018. In Q2 2019, off-plan sales were Dhs 853 million, up 129% from the year ago period, primarily driven by the successful launches of Lea and Alreeman II as well as sales on existing projects under development including Yas Acres

Aldar’s strategy of growing its portfolio of high-quality assets and optimising the value for shareholders through its Asset Management business made good progress in the first half of 2019:

 Recent asset additions including Etihad Plaza, Etihad Airways Centre and Al Jimi Mall extension supported NOI growth of 7% to Dhs 827 million in H1 2019 versus H1 2018. In Q2 2019, NOI was up 5% to Dhs 396 million vs. Q2 2018.

Occupancy across Aldar’s investment property portfolio which includes retail, residential and commercial remained resilient at 90%.

Hospitality had another standout period, with occupancy reaching 77% for the first 6 months of 2019 versus 72% in H1 2018.

Adjacency businesses, including Aldar Academies, Khidmah and Provis witnessed strong performance, contributing positively to financial results

Aldar Properties is the leading real estate developer in Abu Dhabi with $10 billion in assets, a 75 million sq. m land bank, and through its iconic developments, it is one of the most well known in the United Arab Emirates, and wider Middle East region.

From its beginnings in 2005 through to today, Aldar continues to shape and enhance the urban fabric of the UAE’s Capital City in addition to other key areas of the Emirate.

Aldar develops exciting and innovative projects, such as the internationally recognized HQ building situated in the Al Raha Beach development, the Gate Towers in Shams Abu Dhabi on Al Reem Island, in addition to Yas Island’s F1 circuit.

Aldar’s shares are traded on the Abu Dhabi Securities Exchange (Stock quote), and is a profitable, cash generative business that provides recurring revenues, and benefits from a diverse and supportive shareholder base.

Aldar operates according to high standards of corporate governance and is committed to operating a long term and sustainable business in order to provide ongoing value for its shareholders.

Aldar seeks to create quality, comfortable, desirable destinations that enrich the lives of Abu Dhabi residents as well as tourists within the Emirate. Aldar is playing a leading role in the development and provision of world class retail - Yas Mall, international standard education through Aldar Academies, iconic entertainment venues such as the Yas Marina Circuit, and community amenities across its entire portfolio.

Aldar is driven by a vision to be the most trusted and recognized real estate lifestyle developer in Abu Dhabi and beyond.