Abu Dhabi – Mubasher: Aldar Properties reported an 8% year-on-year (YoY) drop in net profit over the third quarter (Q3) of 2019 to AED 387 million from AED 420 million in the same period last year.

The decline in profits, despite a 14% rise in gross profit to AED 662 million, is due to “higher nonrecurring income in 2018, primarily from government reimbursement payments for completed infrastructure delivered by Aldar,” according to a bourse statement on Tuesday.

Revenues increased to AED 1.6 billion in Q3-19, 7% up from AED 1.5 billion in the same period in 2018.

During the first nine months in 2019, the company's profit fell by 12% annually to AED 1.36 billion compared with AED 1.53 billion for the corresponding period last year.

In this regard, CEO of Aldar, Talal Al Dhiyebi, 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.”

“Meanwhile, our large portfolio of rental properties owned and managed by Aldar Investments is producing predictable income streams that provide a 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,” he concluded.

Revenues soared by 12% to AED 5.03 billion over the January-September period in 2019 from AED 4.48 billion a year earlier.  

During the second quarter of 2019, Aldar Properties posted a 5.34% YoY profit increase, registering AED 470.4 million.