Abu Dhabi developer Aldar's net profit in neutral

First quarter net profits at Abu Dhabi’s largest listed developer, Aldar Properties, remained flat compared with a year earlier as a drop in government income was offset by property and land sales.

In a statement to the Abu Dhabi bourse this morning Aldar said that profit attributable to shareholders stood at Dh636 million in this year’s first quarter, 2 per cent lower than the Dh649 million profit of a year earlier.

Aldar said this was because last year it had received a profits boost from Dh219 million in government grants for building infrastructure assets.

The company said that gross profit – which does not include government contributions – stood at Dh753 million, an increase of 39 per cent compared with the Dh542 million of 2016’s first quarter.

Aldar reported that revenue grew 28 per cent to Dh1.58 billion in the latest quarter, driven by revenue being booked on developments under construction and land plot sales.

The company said that it had sold more than Dh100 million of land plots to investors and developers in various locations across Abu Dhabi island. The developer declined to say exactly how much land it had sold during the quarter.

Aldar also said that it had agreed off-plan sales with customers which would eventually be worth Dh1 billion during the quarter, mostly at its West Yas and Yas Acres projects on Yas Island.

“We have a tremendously active portfolio of off plan development,” said Greg Fewer, chief financial officer at Aldar.

“When we grow our gross profits in the way that we have, it’s a reflection of our strong sales and it’s a reflection of the construction activity we are seeing across our portfolio on site. In addition it’s a reflection that we have a very large and very valuable land bank in Abu Dhabi which investors are showing increasing interest in,” he added.

Aldar shares closed up 1.8 per cent in Abu Dhabi today.

lbarnard@thenational.ae

Follow The National’s Business section on Twitter