Abu Dhabi – Mubasher: Aldar Properties, a leading property developer in the UAE, reported a 7% year-on-year increase its net profit for the second quarter of 2019.
Net profit reached AED 476 million in Q2-19, versus AED 445 million in the same quarter of 2018, according to a press release on Thursday.
Revenue hiked by 10% during the three-month period ended 30 June 2019 to AED 1.66 billion from AED 1.51 billion in Q2-18, Aldar Properties revealed.
The company’s gross profit hit AED 669 million in Q2-19, up 3% from AED 649 million in the year-ago period.
Development management registered a growth of 17% in revenue to AED 692 million in Q2-19 on the back of activity on key developments under construction and higher third-party development management fees.
Moreover, off-plan development sales jumped by 129% year-on-year to AED 853 million during the April-June period of 2019, supported by the launch of Lea Yas Island and Alreeman II.
In the first half of 2019, the company recorded a robust net profit of AED 969 million, down 13% year-on-year, backed by healthy performance of core business operations.
Revenue for H1-19 grew by 15% to AED 3.42 billion from AED 2.98 billion in the corresponding period of 2018.
Gross profit reached AED 1.39 billion during the six-month period ended 30 June 2019, up 2% from AED 1.36 billion in H1-18
Aldar’s balance sheet remains strong with cash plus available and undrawn liquidity lines of AED 7.3 billion as at 30 June 2019.
As for asset management, net operating income (NOI) increased by 7% year-on-year to AED 827 million in H1-19.
Talal Al Dhiyebi, CEO of Aldar Properties, commented: “There is an upswing in sentiment towards Abu Dhabi‘s real estate market with the recent announcement of our AED 9 billion worth of development projects since the start of 2019. Those, coupled with government initiatives to spur economic growth, are having a positive multiplier effect on the wider Abu Dhabi economy and stirring confidence.”
“This is reflected in our strong performance for the period, underpinned by near AED 2 billion in off-plan sales. Also, we are investing wisely, extracting more value from our investment portfolio, which is contributing to our growth. The wheels of change are in motion and Aldar is well-positioned and well-funded to capitalise on emerging opportunities,” he added.
In Q1-19, Aldar Properties, listed on the Abu Dhabi Securities Exchange (ADX), reported a 26% year-on-year decrease in its net profit, recording AED 493 million.
The company’s revenue rose by 20% in Q1-19 to AED 1.76 billion from AED 1.47 billion in Q1-18.