Aldar Properties Delivers Strong Underlying Performance In Q3 2017
First phase of Water’s Edge development sold out days after launch
Aldar Properties PJSC ("the Company"), Abu Dhabi's leading listed property development, investment and management company, today announced its financial results for the third quarter of 2017, which show a strong underlying performance across the business.
· Q3 2017 revenue of AED 1.38 billion, gross profit of AED 588 million. Excluding one-off transactions in Q3 2016, this represents underlying year-on-year revenue growth of 27% and 38% gross profit growth
· Net profit of AED 601 million for Q3 2017; AED 1.86 billion in year to 30 September 2017
· AED 604 million in development sales during the quarter – total development sales of AED 2.4 billion in the nine months to 30 September 2017
· Underlying property development revenue up 192% to AED 493 million driven by revenue recognition of off-plan properties under development
· Steady performance of asset management portfolio with AED 360 million net operating income for Q3 2017 and AED 1.12 billion year to date
Commenting on the results, H.E. Mohamed Khalifa Al Mubarak, Chairman, of Aldar Properties, said:
"Aldar has delivered another set of solid results. The exceptional response to our new development, Water's Edge, launched at Cityscape Global, cements our reputation for delivering desirable destinations in Abu Dhabi. Our asset management business delivered a resilient performance during the quarter and we are pleased to be acquiring International Tower, a high-quality office building, further strengthening the portfolio. Aldar continues to assess the market for other attractive acquisition opportunities in line with our commitment to drive growth of long-term recurring revenues."
During the quarter, Aldar launched its AED 2.4 billion, 2,255 home master-planned development, Water's Edge, on the waterfront of Yas Island. The first phase was launched at Cityscape Global in September and fully sold in a matter of days. Sales of homes at Water's Edge, West Yas, as well a land plot sale, took the total value of development sales during the quarter to AED 604 million. This brings the value of total development sales for the first nine months of 2017 to AED 2.4 billion.
Aside from off-plan launches, construction is ongoing at Aldar's eight remaining developments, which are at different stages of completion. Ansam and Al Hadeel are on schedule to be handed over to customers at the end of the year while Nareel, West Yas and Al Merief are entering final stages of construction and are on track to be handed over in early 2018.
Following the construction contract award for The Bridges, Aldar has awarded AED 3 billion of construction contracts in the year to date.
The unprecedented reception by the market of The Bridges and Water's Edge confirms there exists untapped demand for mid-market residential developments in Abu Dhabi. Supported by its extensive land bank, Aldar continues to assess opportunities to create communities which will further develop Abu Dhabi's skyline.
The diverse portfolio of residential, retail, office and hospitality properties in Aldar's asset management portfolio delivered yet another resilient performance. It recorded AED 360 million net operating income in line with Q3 2016. Residential portfolio occupancy increased to 91%, while occupancy was stable in the office portfolio at 92% and at Yas Mall, which remained steady at 93%. The hospitality portfolio recorded occupancy in the first nine months of 2017 of 76%, outperforming the wider Abu Dhabi market of 68% for the comparable period.
During the quarter, Aldar handed over Repton School, marking the third investment plan asset to be completed in this plan.
As part of its commitment to continuously assess opportunities for high-quality assets to grow recurring revenues, Aldar has signed a sales and purchase agreement to acquire International Tower. The transaction is expected to close in the fourth quarter.