- CEO: “Our strong sales reinforce Abu Dhabi’s favourable supply and demand dynamics”
- Q1 off-plan development sales of AED 1.0 billion, up 49% versus Q1 2018
- 9% growth in asset management business net operating income driven by 2018’s asset acquisitions
Abu Dhabi, May 31, 2019: Aldar Properties PJSC (“Aldar”), Abu Dhabi’s leading property development, management and investment company, has reported a 20% year-on-year increase in revenue to AED1.76 billion in the first quarter of 2019.
Q1 2019 key highlights
Revenue increased 20% to AED 1.76 billion vs. AED 1.47 billion, in Q1 2018:
-
- Strong development activity across projects under construction
- Asset management net operating income rose 9% to AED 431 million, driven by last year’s asset acquisitions
- Growth across adjacent businesses, including schools operator Aldar Academies, and newly launched property management firm Provis
- Development sales totalled AED 1.0 billion in the first quarter of 2019, up 49% from year earlier, driven by successful launch of Alreeman
- Asset Management concluded two value-enhancing transactions
- Gross profit of AED 723 million in Q1 2019, in line with Q1 2018
- Net profit of AED 493 million, down 26% vs. Q1 2018, owing to legacy other income events. Adjusting for these legacy other income events and minorities, net profit attributable to shareholders up 4% to AED 553 million
Talal Al Dhiyebi, Chief Executive Officer, Aldar Properties commented: “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.”
Recent Government reforms, including the introduction of freehold title for foreign buyers within investment zones in Abu Dhabi, are enhancing the long-term attractiveness of real estate sector. In addition, the Abu Dhabi Government’s fiscal stimulus programme – Ghadan 21, and new measures to encourage business growth, are already starting to spur the economy and will increase the allure of the Emirate as a place in which to live, work and invest.
Q1 2019 Asset Management highlights
In line with Aldar’s strategy of growing its portfolio of high quality assets and optimising the value for shareholders, the Asset Management business continued to make strong progress in the first quarter of 2019:
- Hospitality had a standout quarter, with a 94% increase in NOI versus Q1 2018, supported by major events across Abu Dhabi including the Special Olympics and IDEX that led to occupancy and ADRs to increase 2% and 19% respectively
- Carried out two transactions in the first quarter:
- In March acquired full ownership of Etihad Plaza and Etihad Airways Centre in an AED 1.2 billion non-cash transaction that unwound three existing joint venture agreements with Etihad, a deal which is expected to add approximately AED 100 million in NOI on an annualised basis
- In March sold Al Murjan Tower for AED 289 million for an implied 6.6% yield, in line with Aldar Investments’ strategy to realise value and redeploy capital in new high-potential opportunities
- Appointed Jassem Saleh Busaibe as Aldar Investment’s Chief Executive Officer. In this role, Mr Busaibe oversees the implementation of Aldar Investments’ strategy through the active management and growth of its high-quality portfolio
- Launched Provis – a new entity to deliver market leading, innovative estate management solutions to clients across the UAE and is value-enhancing addition to Aldar’s portfolio of successful subsidiaries
- Extension of Al Jimi Mall was officially opened in March 2019; the extension adds 33,000 sqm of gross leasable area (GLA) to this flagship mall in Al Ain
Q1 2019 Development Management highlights
On the Development Management front, Aldar reported a strong quarter, delivering on its strategy of activating its land bank to deliver and sell projects on time quality and cost:
- Development sales totalled AED 1.0 billion in the first quarter of 2019, up 49% from year earlier, primarily driven by the successful launch of Alreeman, a development in the Alshamkha area of Abu Dhabi, in January
- Continued sale activity across existing launches including Yas Acres, West Yas and Mamsha
- As at 31 March 2019, c.80% of all development units launched were sold
- Development revenue backlog stands at AED 4.3 billion as at 31 March 2019
- Subsequent to Q1, in April, successful launch of waterfront development, Lea, located on the northern shores of Yas Island. The project was fully sold at public launch in Cityscape, achieving sales of over AED 400 million
- Sales and experience centre was opened in Dubai as a key conduit for international sales
Corporate Comm India(CCI Newswire)