Abu Dhabi: Aldar reports 4% Q1 2018 net profit growth
Abu Dhabi-based Aldar Properties delivered a net profit of AED668mn for the first quarter of 2018, up 4% from Q1 2017 (AED641mn), reflecting a strong start to the year.
Commenting on the results, Talal Al Dhiyebi, chief executive officer of Aldar Properties, said: Aldar started 2018 strongly with the announcement of an historic partnership with Emaar to develop the next era of iconic real estate destinations. The initial AED30bn pipeline of projects, including Saadiyat Grove in Abu Dhabi and Emaar Beachfront in Dubai, is just the start of this partnership, which will enhance our countrys reputation as a destination of choice for residents and tourists alike. Our launch of a boutique development on Reem Island – Reflection shows the continued momentum in our development business, which recorded sales of AED681mn during the quarter, while our asset management business also continued to deliver a resilient performance.
Our acquisition of AED3.7bn of assets from TDIC last week, including a portfolio of assets in the prime Saadiyat Island destination, as well as the launch of Alghadeer in April, cements our reputation as Abu Dhabis leading real estate developer and asset manager and underlines the scale of our ambitious plans for future growth.
Development sales for the quarter were AED681mn, driven by sales of existing developments under construction, with over 80% of all projects under development sold as at March 31, 2018. At the end of the quarter, Aldar launched Reflection, a boutique development on Reem Island, consisting of 374 units and offering investors and owner occupiers the opportunity to secure high-quality homes in a prime location.
Aside from off-plan launches, construction is progressing well at all key developments under construction. Handovers at Ansam and Al Hadeel, which commenced in Q4 2017, are complete. Handovers have now commenced on Al Merief and Nareel Island, as planned. West Yas, Aldars first villa community on Yas Island is entering the final stages of construction and will be handed over in Q2 2018. During the quarter, Aldar awarded AED1.3bn in construction contracts in respect to the 2,255 unit Waters Edge development on Yas Island.
In April, Aldar launched a multi-use development on the border of Abu Dhabi and Dubai, enhancing its established destination at its Seih Al Sdeirah landbank, Alghadeer. Launched ahead of Cityscape Abu Dhabi, the Alghadeer community will be complemented by office and retail space as well as hospitality, education and community amenities, in line with Aldars strategy to create complete communities. Aldar has already sold two of the land plots for community services including a school and retail outlets.
Aldars asset management portfolio of residential, retail, office, and hospitality properties delivered a resilient performance during the first quarter of 2018, recording net operating income of AED396mn. Occupancy was healthy across the portfolio. Residential occupancy increased to 92%, while occupancy at the expanded office portfolio, including International Tower acquired by Aldar in December, was 91% and Yas Mall was 89%. The hospitality portfolio recorded occupancy of 85%.
Aldar and Emaar announced a strategy partnership in March to develop iconic destinations with an initial focus on two projects with an AED30bn gross development value pipeline. The JV will draw on the proven capabilities of the UAEs leading developers to deliver quality master-planned communities starting with Saadiyat Grove in the heart of Abu Dhabis cultural district and Emaar Beachfront on a private island between Jumeirah Beach Residences and Palm Jumeirah in Dubai.
Post period, Aldar announced the acquisition of a diverse portfolio of assets from TDIC for AED3.7bn. The portfolio, which includes operating assets, as well as a selection of prime strategic land and projects under development, will further strengthens Aldars position as the leading developer and real estate asset manager in Abu Dhabi and provide an unprecedented opportunity to accelerate growth.
