Aldar Properties PJSC (“the Company”), Abu Dhabi's leading listed property development, investment and management company, today announced its financial results for the first half of 2017, recording a 5% increase in gross profit to AED 1.29 billion, up from AED 1.23 billion in the first half of 2016.
• H1 2017 revenue of AED 2.93 billion supported by revenue recognition on developments under construction (H1 2016: AED 2.93 billion)
• H1 2017 net profit AED 1.26 billion (H1 2016: AED 1.31 billion)
• Q2 2017 net profit AED 620 million (Q2 2016: AED 654 million)
• AED 1.8 billion development sales value in first six months with AED 600 million contribution from the successful launch of The Bridges
• Resilient occupancy across investment portfolio, AED 3 billion investment programme fully committed
• Appointed developer for new AED 1 billion media and entertainment free zone on Yas Island, as part of a recently announced AED 12 billion government development on Yas Island
Commenting on the results, H.E. Mohamed Khalifa Al Mubarak, CEO of Aldar Properties, said:
“Aldar has delivered a solid set of results for the first half of the year. Robust occupancy across our portfolio of investments demonstrates our resilience as an asset manager and the success of our most recent residential development, The Bridges, clearly shows there is strength in the Abu Dhabi property market. The unprecedented response to The Bridges, which sold out in a matter of weeks, showcases the opportunities presented by the mid-market and supports our strategy to continue to focus on this segment.
“The Abu Dhabi Government’s unveiling of an AED 12 billion development plan for Yas Island will accelerate its transformation into a global urban, entertainment and business hub. Aldar is pleased to have been chosen to develop the AED 1 billion media and entertainment zone in the project, set to become home to thousands of working professionals who will further enrich the Yas Island destination.”
In April, Aldar launched its 1,272 unit, AED 1.3 billion mid-market residential development, The Bridges, on Reem Island. The launch met with a very positive response, with all three towers released to the market sold out in weeks. This contributed to Aldar’s AED 1.8 billion of development sales value during the first six months of 2017.
During the second quarter, twofour54 appointed Aldar as the strategic real estate partner of the Abu Dhabi Media Zone Authority, to develop a new, permanent home as part of an AED 12 billion development on Yas Island. Already a leading entertainment, leisure and residential destination, the development of twofour54’s media zone further enhances Yas Island’s desirability as a place to do business. In addition, it is set to attract 5,000 working professionals from the media sector, further building the Yas Island community.
Demonstrating the continued activity on properties under development, AED 2.2 billion of construction contracts have also been awarded year to date for Yas Acres and Mayan.
Three key developments, Ansam, Al Hadeel and Nareel Island, are set for handover from Q4 2017, with construction entering final stages. Al Merief, Meera, Mayan, Yas Acres and West Yas are all progressing well and on track for their respective completion dates.
Aldar continually assesses opportunities in the Abu Dhabi real estate market, delivering homes to suit the needs of the market. The mid-market segment continues to be underserved and, following the success of The Bridges, Aldar will continue to develop high-quality, mid-market residential products around its key destinations, specifically Reem Island and Yas Island.
Aldar’s asset management portfolio continues to outperform the wider Abu Dhabi market across all key sectors. Aldar achieved stable occupancy above 90% across its residential and office portfolio as well as Yas Mall. The hospitality portfolio recorded occupancy of 78%, against the Abu Dhabi market of 70%. This demonstrates the sustained demand for its high quality properties in sought-after locations.
During the quarter, Aldar’s flagship retail asset, Yas Mall, launched a 24-hour mega sale over Eid Al Fitr, which was the first of its kind in the emirate. The unprecedented reaction to this retail and entertainment event, which saw over 250,000 visitors entering the mall in 24 hours, underlines Abu Dhabi’s strong position as a leisure and shopping destination.
Four new investments were committed during the first six months of 2017, completing Aldar’s AED 3 billion investment programme. Aldar continues to assess opportunities for high-quality assets to grow recurring revenues.