Abu Dhabi - Mubasher: Aldar Properties on Thursday posted an 8% year-on-year increase in revenues for the third quarter of 2018, recording AED 1.5 billion.

The Abu Dhabi-based firm recorded a solid gross profit of AED 581 million in Q3-18 supported by its core business, according to a statement to the Abu Dhabi Securities Exchange (ADX).

The real estate company also reported a net profit of AED 420 million in the three-month period ended September, the statement added.

Net operating income from recurring revenue asset portfolio rose 6% year-on-year to AED 381 million on the back of the company’s recent asset acquisitions, Aldar said.

Moreover, asset management made up 66% of the Q3-18 gross profit, whereas development sales stood at AED 1.5 billion year-to-date bolstered by sales at Al Ghadeer, Mamsha Al Saadiyat, and West Yas, the company highlighted.

Talal Al Dhiyebi, CEO of Aldar, commented: “Our financial results for the quarter reflect the solid performance of our two core businesses, with gross profit steady year on year. Our asset management business maintained strong occupancy in Q3, demonstrating resilience.”

“We continued to uphold our reputation for delivery in our development business, with customer handovers at West Yas and Nareel Island,” Al Dhiyebi added.

He further noted that “today, more than two-thirds of our gross profit comes from the stable, mature assets held in Aldar Investments delivering consistent returns throughout the cycle.”

“This is complemented by a development business that is expected to deliver over 7,000 units from 2018 until 2021, providing a steady pipeline of contracted cash flows that will start contributing to Aldar’s 2018 dividend, in line with our stated dividend policy,” he continued.

He also remarked that 2018 has been a remarkable year for Aldar as the company unveiled “series of strategic milestones” that are reinforcing its business and expansion across Abu Dhabi, including Saadiyat Island.

He said that recent government initiatives, including the AED 50 billion Ghadan 21 programme, the legislative changes promoting long-term residence, and Abu Dhabi National Oil Company’s (ADNOC) AED 486 billion capital investment plans will boost national development and support sustainable long-term growth.

Aldar also reported a steady occupancy at around 90% across retail, residential, and commercial portfolios, ahead of wider Abu Dhabi market, according to the statement.

Additionally, the company’s off-plan sales reached AED 1.5 billion year-to-date driven by sales at Al Ghadeer, Mamsha Al Saadiyat, and West Yas, the press noted.

In October, Al Dhiyebi said that Aldar’s was looking to invest around AED 13 billion in new projects.