Aldar fourth-quarter profit dips 1 per cent amid 'softer operating market'

Fourth-quarter profit at Aldar Properties fell marginally compared with a year ago as the capital’s largest listed developer complained of facing “headwinds” in the Abu Dhabi market.

Aldar reported that net profit for the final three months of 2016 fell 1 per cent to Dh728 million from Dh735m during the same period a year ago as the company reported a “softer operating market.”

At the same time, Aldar reported that revenue for the quarter increased 27 per cent to Dh1.4 billion from Dh1.1bn a year earlier.

“We are seeing some headwinds in the market right now,” said Greg Fewer, Aldar’s chief financial officer.

The company said that it had made provisions and impairments of Dh100m during the fourth quarter of 2016 because of falls in the market value of the company’s recurring revenue portfolio.

Aldar said it expected to record about Dh3bn worth of property sales this year, down from Dh3.5bn in 2016, as the company focused on building cheaper units.

Aldar said that it expects to launch about 1,500 units a year into the market, but it also said that this year it would focus on building mid-market housing at its Reem Island and Yas Island communities.

For the full year, Aldar said that net profit grew 8.6 per cent to Dh2.78bn from Dh2.56bn a year earlier.

The company said that revenues for the year grew 36 per cent to Dh6.23bn from Dh4.58bn a year earlier.

Aldar announced a shareholder dividend of 11 fils per share for 2016, up from 10 fils per share in 2015.

lbarnard@thenational.ae

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