Aldar Properties Q3 2015 Results Q3 2015 gross profit from recurring revenue assets up 47% to AED 349 million versus Q3 2014
H.E. Mohammed Al Mubarak, CEO of Aldar Properties, commented:
"Aldar has delivered a solid performance in the third quarter by executing on our strategy to fully stabilise our recurring income portfolio and by bringing new quality developments to market.
We continue to see strong demand in residential sales with Shams Meera and West Yas both performing well in the quarter, demand we will continue to respond to with quality residential products."
Financial highlights Gross profit from recurring revenue assets grew 47% in Q3 2015 to AED 349 million from AED 238 million in the same period last year, driven by Yas Mall and the contribution of the fully leased and occupied residential portfolioNet profit up 9% to AED 638 million in Q3 2015 from AED 584 million (Q3 2014) due to the continued growth in recurring revenues and higher profit contribution on current development projects despite lower revenuesGross debt remained stable at AED 7.1 billion as at 30 September 2015Strong cash flow generation, supported by Government of Abu Dhabi receivables, resulted in a closing unrestricted cash position of AED 5.9 billion as at the period end
Operational highlights – recurring revenues355 units now trading at the fully leased Yas Mall; key anchors Apple Store and Tryano opened in October and November respectively99% occupancy across 4,800 unit strong residential portfolio as at 30 September 201592% leased across Office portfolio as at 30 September 2015, following further leasing agreements signed (30 Sep 2014: 87%)First nine months 2015 occupancy across the hotel portfolio at 79%, in line with 2014 comparative period, ahead of Abu Dhabi market levelsAldar Academies to add two new schools in September 2016
Operational highlights – development Meera reaches 80% of total units sold to dateMayan, a new prime residential development on Yas Island, will be launched on 15 November 2015
Abu Dhabi, 10 November 2015: Aldar Properties PJSC, Abu Dhabi's leading listed property development, investment and management company, today announced net profit up 9% to AED 638 million (Q3 2014: AED 584 million). This was principally as a result of the growth and stabilisation of recurring revenues and higher development profits on new developments.
Revenues for the third quarter 2015 were AED 1,176 million compared to AED 1,368 million in the third quarter 2014. Q3 2015 gross profit margin was 47%, up from 26% in the third quarter of 2014 attributable to the larger proportion of recurring revenues streams and higher margin development profits.
Meera, a mid-income residential development on Shams Abu Dhabi has now reached 80% total units sold, demonstrating the demand for attractively priced real estate in Abu Dhabi.
Mayan, a new prime residential development in Yas Island will be launched on 15 November 2015, the second Aldar residential development on Yas Island after the successful launch of Ansam last year.
In August 2015, Aldar launched West Yas, a residential development on Yas Island exclusively for UAE Nationals. West Yas consists of 1,017 four and five-bedroom luxury villas located along the island's natural mangroves. 300 units were sold in Phase I and Phase II sales, which were launched on 12 October 2015 are currently under way.
Recurring revenue asset performance
The expanded recurring revenue asset base which predominantly includes retail, residential, office and hotel assets grew significantly quarter-on-quarter. This was primarily driven by the impact of Yas Mall, which opened in November 2014 and stabilisation of the expanded residential portfolio. Further to this, the group has seen an overall improvement in operational performance following successful leasing activities of office assets and improved hotel financial performance. Q3 2015 recurring revenue asset gross profit margins were 52% versus 45% in Q3 2014.
The unrestricted cash position increased to AED 5.9 billion as at 30 September 2015 following strong cash flow generation during the quarter, including the receipt of an AED 545 million Government receivable in relation to infrastructure recoverable costs.
Gross debt remained stable at AED 7.1 billion as at 30 September 2015 with undrawn committed facilities of AED 1.8 billion.