Abu Dhabi: Aldar reports AED2bn net profits for 2017

Abu Dhabi-listed developer, Aldar Properties, reported a net profit of AED2bn for 2017, a slight decrease as compared to AED2.78bn in 2016.

The developer attributed the reduction to the 3% value adjustment to its asset management portfolio. The company also reported a revenue of AED6.2bn, which was up by 26%. Aldar posted fourth-quarter development sales of AED1.2bn driven by Water’s Edge and West Yas properties.

Commenting on the results, HE Mohamed Khalifa Al Mubarak, chairman of Aldar Properties, said: “Abu Dhabi has a clear and compelling vision, and as the Emirate’s leading property developer, Aldar plays a key role in supporting its growth. Our unrelenting focus on creating attractive urban destinations for visitors and residents of Abu Dhabi drives our ambitious growth plans and sets a solid foundation for a successful year ahead.” 

Commenting on the results, Talal Al Dhiyebi, chief executive officer of Aldar Properties, said: “Our accomplishments during 2017 validate the success of our destination development strategy. Off-plan development sales hit AED3.5bn, demonstrating the rich demand for Aldar’s properties while we expanded our portfolio of owned assets with the acquisition of International Tower, achieving our target of AED1.6bn in net operating income.

“We have bold plans for 2018 – exciting development launches and seeking opportunities to grow our portfolio in existing and new markets. With solid foundations, an extensive land bank, deep industry experience and an enviable portfolio of assets, Aldar is well positioned to achieve its strategy to deliver desirable destinations in Abu Dhabi in 2018 and beyond.”

Aldar launched two new residential developments – The Bridges and Water’s Edge – during 2017, targeting a broader spectrum of the market. Aldar recorded AED3.5n in development sales across 1,900 units during the year, both ahead of guidance. 

Aside from off-plan launches, construction is ongoing at Aldar’s other developments with AED3bn awarded in construction contracts for the year. The handover of Ansam to customers began in December 2017, marking the establishment of Yas Island’s permanent residential population, creating communities with close proximity to Aldar’s leisure assets on the island. Al Hadeel, located on Al Bandar, also started handover in December 2017. Nareel Island, West Yas and Al Merief are entering final stages of construction and are on track to be handed over during the first half of 2018.

Aldar’s asset management portfolio of residential, retail, office, and hospitality properties delivered a resilient performance during 2017, recording AED1.6bn net operating income, in line with FY2016 and guidance. This was supported by a strong fourth quarter with high occupancy and rates at Aldar’s portfolio at hotels, mainly driven by the busy calendar of events on Yas Island and the acquisition of International Tower.

Residential portfolio occupancy remained steady at 91% as of December 31, 2017. Occupancy at the expanded office portfolio and Yas Mall stood at 88% and 94% respectively. Full-year hospitality portfolio recorded occupancy in the of 78%, outperforming the wider Abu Dhabi market of 72%.