Aldar second-quarter net profit rises on higher revenue amid recovery

The company recorded $640m in quarterly sales, its highest ever

Expatriate homeowners and foreign investors represent 42% of total buyers of Aldar properties.

Aldar Properties, Abu Dhabi’s biggest listed developer, reported a 7.6 per cent jump in second-quarter profit, thanks to higher revenue and rental income as the UAE’s property market continues to recover from the coronavirus pandemic.

Net profit attributable to owners of the company for the three-month period to the end of June climbed to Dh520 million ($142m), Aldar said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded. Revenue and rental income for the period rose more than 9 per cent annually to about Dh2.2 billion.

The company said it recorded Dh2.35bn in quarterly sales, its highest ever.

“This growth has been underpinned by strong appetite for prime Abu Dhabi properties among diverse end users and investors, as well as further strengthening of investment-friendly policies,” Talal Al Dhiyebi, group chief executive of Aldar Properties said.

“Aldar’s diversified businesses have achieved significant uplift in activity over the past 12 months.

“Development launches have ramped up, third-party management fees have climbed as projects gathered pace, and our education and property management businesses have built considerable scale.”

Net profit for the first six months of the year climbed nearly 36 per cent to Dh1bn, compared to the same period a year earlier. Revenue and rental income during the period rose 12.5 per cent to Dh4.23bn.

“Aldar expects to sustain the accelerated pace of activity and take advantage of attractive investment opportunities presented by this market cycle. We will continue to launch new developments in premier locations and pursue further asset growth and diversification of our investment property portfolio,” Mr Al Dhiyebi said.

Property markets in Abu Dhabi and Dubai, in common with other global property investment centres, have rebounded strongly, as pent-up demand along with central bank monetary support and government stimulus measures boosted economic activity.

Capital values in Abu Dhabi's residential investment zones rose by 2.1 per cent during the second quarter, compared with the previous three-month period, according a survey by real estate consultancy ValuStrat. They were 3.9 per cent higher year-on-year from the Covid-19 challenges of 2020, it said.

Aldar Investment said its revenue increased on the back of “steady occupancy across Aldar’s diversified portfolio of investment properties and higher contributions from Provis and Aldar Education”.

Aldar is also leading a consortium of investors that submitted a non-binding offer to acquire a majority stake in Egypt’s Sixth of October Development and Investment Company.