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Aldar Properties Q1 profits fall 26%

Aldar Properties Q1 profits fall 26%
Development sales jumped by 49% in Q1-19 to AED 1 billion
15.19% 6.90 0.91

Abu Dhabi - Mubasher: Aldar Properties, listed on the Abu Dhabi Securities Exchange (ADX), has posted a 26% year-on-year decline in its net profit for the first quarter of 2019, recording AED 493 million.

Abu Dhabi's largest property developer has also reported a 20% growth in revenue in Q1-19, reaching AED 1.76 billion, versus AED 1.47 billion in Q1-18, according to a statement.

Asset management net operating income stood at AED 431 million in the three-month period ended 31 March 2019, up 9% year-on-year backed by 2018 asset acquisitions.

Development sales jumped by 49% in Q1-19 to AED 1 billion on the back of the successful launch of Alreeman, Aldar said.

Moreover, the company’s gross profit totalled AED 723 million at the end of March, the property development, management, and investment company added.

Additionally, net profit attributable to shareholders amounted to AED 553 million in the January-March period of the year, rising 4% year-on-year.

Talal Al Dhiyebi, CEO of Aldar, said: “2019 is off to a great start. Our strong sales reinforce Abu Dhabi’s favourable supply and demand dynamics as seen with Alreeman and Lea. Our high-quality asset management portfolio is well balanced and showing the benefits of its strategic diversification. Our strategy is optimised to take advantage of the opportunities stemming from pro-growth government initiatives.”

As for the asset management business, Aldar has maintained solid progress in Q1-19, reporting a 94% hike in hospitality’s net operating income (NOI), backed by major events across Abu Dhabi including the Special Olympics and IDEX.

Furthermore, the company has fully acquired Etihad Plaza and Etihad Airways Centre last March in an AED 1.2 billion non-cash transaction that re-opened three existing joint venture agreements with Etihad, a deal which is likely to add around AED 100 million in NOI on an annualised basis.

Additionally, Aldar has sold Al Murjan Tower in March for AED 289 million for an implied 6.6% yield, the statement highlighted.

In March, Aldar has launched its new entity Provis, as well as has officially opened the extension of Al Jimi Mall.

The company also revealed that nearly 80% of all development units launched were sold as at 31 March 2019, adding that development revenue backlog totalled AED 4.3 billion in Q1-19.

In April, Aldar successfully launched a waterfront development, Lea, in Yas Island and the project was fully sold at a public launch in Cityscape with over AED 400 million.