Abu Dhabi's Aldar Properties is on track to achieve Dh4 billion in off-plan sales and generate Dh1.7bn in net operating income from its asset management business this year, said the company as it reported a rise in third-quarter revenues.
The year-to-date off-plan sales climbed to Dh3bn and "we feel very confident that it will be fulfilled. So we are not changing that [guidance] through the fourth quarter," said Greg Fewer, chief financial officer of Aldar.
"Both those guidances represent significant growth on where we finished our business in 2018, so 2019 as a growth year is very much on track," Mr Fewer said on Tuesday. "The fact that these guidances remain stable reflects the confidence we are seeing in the market".
Aldar more than quadrupled off-plan sales at the end of the third quarter and more than doubled them in the first nine months of the year. The majority of of the sales were to new customers, Mr Fewer said.
“The positive investor sentiment is created by a lot of regulatory change by the government, whether it is the real estate law perfected and rolled out … as well as visa programmes. These are all improving sentiment,” he added.
Aldar Properties, the biggest-listed developer in the emirate, reported a 7 per cent rise in its third-quarter revenues to 1.6bn, with quarterly off-plan development sales reaching Dh1.1bn.
Net operating income for Aldar’s asset management business increased by 4 per cent to Dh397 million. Overall gross profit of the company rose by 14 per cent year-on-year to Dh662m.
"Aldar's customer-centric business model continues to deliver sustainable, broad-based growth. Development sales have seen strong momentum this year following the successful launch of new projects," Talal Al Dhiyebi, chief executive of Aldar, said on Tuesday.
“Robust demand from end users for our off-plan developments and infrastructure-enabled land plots is a positive sign for the Abu Dhabi real estate market and the wider economy.”
The company's large portfolio of rental properties owned and managed by Aldar Investments is also producing "predictable income streams that provide the strong base for our dividend", he said.
Aldar's quarterly net income however fell by 8 per cent to Dh387m at the end of September due to higher non-recurring income in 2018, primarily from the government reimbursement payments for completed infrastructure delivered by the company.
"In the corresponding period of 2018, we were recording still a lot of other income from our programme of infrastructure handing over. This has been a long-standing programme, and that has wound down last year," Mr Fewer said. "Net income line reflects, the non-recurrence. [However] from a core business perspective, it is still very much a growth story."
Revenues for the first nine months of the year also rose 12 per cent to Dh5.03bn, while the company’s gross profit increased 6 per cent to Dh2.05bn.
"Aldar's flagship projects such as Mamsha, Jawaher and Yas Acres are progressing well with handover dates approaching," Egyptian investment bank EFG Hermes said in a note to investors. Development sales revenue backlog stood at Dh4.6bn as at September, up from Dh4.5bn in June 19, it said.
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What drives subscription retailing?
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How The Debt Panel's advice helped readers in 2019
December 11: 'My husband died, so what happens to the Dh240,000 he owes in the UAE?'
JL, a housewife from India, wrote to us about her husband, who died earlier this month. He left behind an outstanding loan of Dh240,000 and she was hoping to pay it off with an insurance policy he had taken out. She also wanted to recover some of her husband’s end-of-service liabilities to help support her and her son.
“I have no words to thank you for helping me out,” she wrote to The Debt Panel after receiving the panellists' comments. “The advice has given me an idea of the present status of the loan and how to take it up further. I will draft a letter and send it to the email ID on the bank’s website along with the death certificate. I hope and pray to find a way out of this.”
November 26: ‘I owe Dh100,000 because my employer has not paid me for a year’
SL, a financial services employee from India, left the UAE in June after quitting his job because his employer had not paid him since November 2018. He owes Dh103,800 on four debts and was told by the panellists he may be able to use the insolvency law to solve his issue.
SL thanked the panellists for their efforts. "Indeed, I have some clarity on the consequence of the case and the next steps to take regarding my situation," he says. "Hopefully, I will be able to provide a positive testimony soon."
October 15: 'I lost my job and left the UAE owing Dh71,000. Can I return?'
MS, an energy sector employee from South Africa, left the UAE in August after losing his Dh12,000 job. He was struggling to meet the repayments while securing a new position in the UAE and feared he would be detained if he returned. He has now secured a new job and will return to the Emirates this month.
“The insolvency law is indeed a relief to hear,” he says. "I will not apply for insolvency at this stage. I have been able to pay something towards my loan and credit card. As it stands, I only have a one-month deficit, which I will be able to recover by the end of December."
