Aldar Properties, Abu Dhabi's biggest listed developer, reported a 24 per cent annual jump in its first-quarter profit as revenue rose during the period on the back of higher home sales.
Net profit attributable to equity holders of the company for the three months to the end of March climbed to Dh2 billion ($555.1 million), the company said in a bourse filing on Tuesday to Abu Dhabi Securities Exchange, where its shares are traded.
Revenue during the quarter increased 12 per cent year-on-year to Dh8.7 billion, with the company recording total group sales of Dh6.7 billion for the period.
There was also sustained demand among international buyers, with UAE sales to overseas and overseas customers and expatriate residents reaching Dh5.3 billion in the first quarter, representing 88 per cent of total UAE sales.
Development backlog revenue rose to Dh72.1 billion, including Dh62.2 billion in the UAE, providing “clear visibility on revenue recognition over the next three years,” according to the company.
“Aldar’s first-quarter performance demonstrates the strength of our business model, which has evolved over time to ensure we are well positioned to navigate counter cyclical pressures as well as unforeseen external events,” Aldar chairman Mohamed Al Mubarak said.
“With a strong liquidity position and financial flexibility, we will capture the opportunities that lie ahead and remain confident in our ability to deliver sustainable long-term returns for our shareholders.”
Aldar launched new projects and announced new acquisitions recently. These include the purchase of Dh650 million worth of logistics assets from Khalifa Economic Zones Abu Dhabi (Kezad), and the acquisition of The Link at Masdar City for Dh654 million in partnership with Mubadala Investment Company.
The company also unveiled plans to build 9,000 new affordable homes for rent in Abu Dhabi, valued at Dh2.8 billion at Baniyas and MBZ City, to boost its portfolio.
“Underlying demand fundamentals remain robust, reaffirmed by the very successful recent launch at Yas Park Place,” said Aldar chief executive Talal Al Dhiyebi.
“This supports our view that demand remains resilient for the right product, underpinned by a structurally undersupplied market in Abu Dhabi and strong long-term economic fundamentals.”
Aldar sold 80 per cent of the homes released at Yas Park Place, its new mid-rise residential community at Yas Island, with the company recording more than Dh800 million in sales.
