Aldar delivers 20% increase in gross profit for Q2 2018

ABU DHABI, 7th August, 2018 (WAM) -- Aldar announced its financial results for the first half of 2018, delivering a resilient underlying performance across the business. According to a press statement, gross profit in the second quarter of 2018 increased by 20 percent to AED649 million compared to AED542 million in 2017. Commenting on the results, Talal Al Dhiyebi, Chief Executive Officer of Aldar Properties, said, "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 masterplanned 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." Aldar completed the AED3.6 billion Tourism Development & Investment Company, TDIC, asset acquisition in June 2018. Aldar’s acquisition of assets from TDIC included a portfolio of operating assets, predominantly comprising residential, hospitality and leisure and district cooling. The transaction was completed in the second quarter within 60 days of being announced. These assets are now firmly integrated into Aldar’s portfolio and will provide a more meaningful contribution during the second half of the year and beyond. Development sales for the first half of the year were AED1.1 billion (Q2 2018: AED372 million), driven by sales of developments under construction, and two newly launched developments that build on Aldar’s destination strategy. Alghadeer, a new AED10 billion, 14,408 unit masterplan that sits within Aldar’s Seih Al Sdeirah landbank on the border between Abu Dhabi and Dubai was launched at Cityscape Abu Dhabi in April 2018. Reflection, launched in March 2018, is a boutique residential development on Reem Island expanding Aldar’s portfolio of mid-income developments in a city location. Handover completed at Ansam and Hadeel, and commenced on West Yas (Aldar’s first villa community on Yas Island), Al Merief (a master planned community in Khalifa City) and Nareel Island (an exclusive master planned community near Al Bateen). All other developments under construction are progressing well, with Meera, located on Reem Island, on track for handover in the last quarter of 2018. Aldar’s asset management portfolio of residential, retail, office and hospitality properties delivered another resilient performance, with a six percent increase in net operating income to AED377 million during Q2 2018, compared with AED357 million in Q2 2017. Occupancy remains healthy across the portfolio. Residential occupancy as at 30 June 2018, stood at 91 percent, while occupancy in the commercial portfolio was 91 percent and Yas Mall was steady at 89 percent. The hospitality portfolio recorded occupancy of 74 percent during the first six months of 2018.