Aldar Properties today reported a 15% year-on-year increase in revenue to AED 3.42 billion in the first half of 2019.
According to a financial statement released by the company, revenue for H1 2019 increased 15% to AED 3.42 billion vs. AED 2.98 billion in H1 2018, driven by activity on key developments under construction, while gross profit for H1 2019 increased 2% to AED 1.39 billion vs. AED 1.36 billion in H1 2018, and solid net profit in H1 2019 of AED 969 million driven by strong performance of core business operations, down 13% from H1 2018, primarily owing to legacy one off income events in H1 2018.
As of 30 June 2019, the balance sheet remains robust with cash plus available and undrawn liquidity lines of AED 7.3 billion, the statement also revealed.
Meanwhile, revenue for Q2 2019 increased 10% to AED 1.66 billion vs. AED 1.51 billion in Q2 2018, development management recorded a 17% growth in revenue to AED 692 million, driven by activity on key developments under construction and higher third-party development management fees. Off-plan development sales increased 129% to AED 853 million in Q2 2019, driven by successful launch of Lea Yas Island and Alreeman II, and resilient performance from Asset Management business, with net operating income (NOI) increasing by 5% to AED 396 million in Q2 2019, with strong performance from hospitality and fully owned adjacent businesses Aldar Academies (schools), Provis (property management) and Khidmah (facilities management).
Furthermore, the gross profit for Q2 2019 increased 3% to AED 669 million vs. AED 649 million in Q2 2018, and net profit for Q2 2019 increased 7% to AED 476 million vs. AED 445 million in Q2 2018.
Talal Al Dhiyebi, Chief Executive Officer, Aldar Properties said, "There is an upswing in sentiment towards Abu Dhabi‘s real estate market with the recent announcement of our AED 9 billion worth of development projects since the start of 2019. Those, coupled with government initiatives to spur economic growth, are having a positive multiplier effect on the wider Abu Dhabi economy and stirring confidence. This is reflected in our strong performance for the period, underpinned by near AED 2 billion in off plan sales. Also, we are investing wisely, extracting more value from our investment portfolio, which is contributing to our growth. The wheels of change are in motion and Aldar is well positioned and well-funded to capitalise on emerging opportunities."