Abu Dhabi-based Aldar Properties PJSC announced 20% increase in gross profit for the second quarter of 2018, touching AED649 million, while gross profit for first half of the year was up 5% to AED1.4 billion. The developer reported gross profit margin of 46% during H1 2018, compared to 44% in H1 2017, supported by high margin development and land plot sales revenue.
The Q2 2018 revenue is up 12% to AED1.5 billion supported by recent asset acquisition. The H1 2018 revenue is up 2% to AED3 billion driven by revenue recognition on developments under construction and recent asset acquisition. Aldar recorded net profit of AED1.1 billion during the first half of 2018, and AED 445 million during the second quarter.
Commenting on the results, Talal Al Dhiyebi, CEO, Aldar Properties, says, “Aldar delivered a solid underlying performance for the first half of 2018 alongside a number of landmark announcements. In the development business, we launched a new master-planned community Alghadeer and reinforced our reputation for delivery as we commenced handover of land plots and villas at Nareel Island, Al Merief and West Yas.”
“We have cemented our position as Abu Dhabi’s leading real estate investment company by completing one of the country’s largest ever real estate acquisitions. The transaction, completed in just 60 days after being announced, adds AED3.6 billion of strategic operating and development assets to our existing portfolio, which continues to deliver a resilient and consistent performance, positioning us well for future growth.”
In May 2018, Aldar announced the acquisition of a selection of assets from Tourism Development & Investment Company (TDIC). The assets purchased included residential projects on Saadiyat Island at reasonably advanced stages of construction. These high-quality projects expand Aldar’s pipeline of existing projects under development and contribute immediate revenue as construction progresses.
Aldar’s asset management portfolio of retail, residential, office and hospitality properties delivered another resilient performance, with a 6% increase in net operating income to AED377 million during Q2 2018, compared with AED357 million in Q2 2017.