Abu Dhabi, August 09, 2019: Aldar Properties PJSC (“Aldar”), Abu Dhabi’s leading property development, management and investment company, today reported a 15% year-on-year increase in revenue to AED3.42billion in the first half of 2019.
Financial highlights
H1 2019
- Revenue for H1 2019 increased 15% to AED 3.42 billion vs. AED 2.98 billion in H1 2018, driven by activity on key developments under construction
- Gross profit for H1 2019 increased 2% to AED 1.39billion vs. AED 1.36 billion in H1 2018
- Solid net profit in H1 2019 of AED 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 AED 7.3 billion
Q2 2019
- Revenue for Q2 2019 increased 10% to AED 1.66 billion vs. AED 1.51 billion in Q2 2018
- Development Management recorded a 17% growth in revenue to AED 692 million, driven by activity on key developments under construction and higher third-party development management fees
- Off-plan development sales increased129% to AED 853 million in Q2 2019, driven by successful launch of Lea Yas Island andAlreeman II
- Resilient performance from Asset Management business, with net operating income (NOI)increasing by 5% to AED396 millionin Q2 2019, with strong performance from hospitality and fully owned adjacent businesses Aldar Academies (schools), Provis (property management) and Khidmah (facilities management)
- Gross profit for Q2 2019 increased 3% toAED 669million vs. AED 649million in Q2 2018
- Net profit for Q2 2019 increased 7% to AED 476 million vs. AED 445million in Q2 2018
Talal Al Dhiyebi, Chief Executive Officer, Aldar Properties commented:
“There is an upswing in sentiment towards Abu Dhabi‘s real estate market with therecent announcement of ourAED 9 billion worth of development projects since the start of 2019.Those, coupled with government initiativesto 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 AED 2 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 andwell-funded to capitalise on emerging opportunities.”
H1 2019 Development Management highlights
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 AED 9 billion (AED 4 billion between Alreeman I, II and Lea; AED 5 billion from Government awarded contracts)
- In H1 2019, off-plan development sales totalled AED 1.9 billion, up 78% versus H1 2018. In Q2 2019, off-plan sales were AED 853 million, up 129% fromthe 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
- To date c.80% of all development units launched sold
- Development revenue backlog stands at AED 4.5 billion as at 30 June 2019
- Widening international client base through partnership with ANAROCK Group, India’s leading specialised real estate services company. This tie up aims to provide Indian investors with direct access to Aldar’s portfolio of world-class destinations across Abu Dhabi
- Subsequent to Q2, in July, Aldar announced signing AED 5 billion worth of construction projects across several key Abu Dhabi areas and landmarks including:
- An AED 2 billion project to develop the expansion of Al Falah housing community on behalf of the Government, adding 899 new villas to the community’s existing 4,898 villas;
- An AED 1 billion project to develop twofour 54’s new state-of-the-art campus that will ultimately house 10,000 professionals on Yas Island;
- AED 2 billion worth of infrastructure works on Saadiyat Island, including landscaping and transport-related structure
H1 2019 Asset Management highlights
Aldar’s strategy of growing its portfolio of high-quality assets and optimising the value for shareholders through its Asset Management business madegood 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 AED 827 million in H1 2019 versus H1 2018. In Q2 2019, NOI was up 5% to AED 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
Corporate Comm India (CCI Newswire)
