Aldar Properties PJSC (Aldar) has reported a 20 percent year-on-year increase in revenue to AED1.76 billion in the first quarter of 2019.
According to the financial statement, revenue increased 20 percent to AED 1.76 billion as compared to AED 1.47 billion, in Q1 2018.
Asset management net operating income rose 9 percent to AED 431 million, driven by last year's asset acquisitions while development sales totalled AED 1.0 billion in the first quarter of 2019, up 49 percent from year earlier, driven by successful launch of Alreeman.
Gross profit of AED 723 million in Q1 2019, in line with Q1 2018 with net profit of AED 493 million, down 26 percent in comparison to Q1 2018, owing to legacy other income events.
Talal Al Dhiyebi, Chief Executive Officer, Aldar Properties, said, "2019 is off to a great start. Our strong sales reinforce Abu Dhabi's favourable supply and demand dynamics as seen with Alreeman and Lea. Our high-quality asset management portfolio is well balanced and showing the benefits of its strategic diversification. Our strategy is optimised to take advantage of the opportunities stemming from pro-growth government initiatives."
Recent Government reforms, including the introduction of freehold title for foreign buyers within investment zones in Abu Dhabi, are enhancing the long-term attractiveness of real estate sector. In addition, the Abu Dhabi Government's fiscal stimulus programme – Ghadan 21, and new measures to encourage business growth, are already starting to spur the economy and will increase the allure of the Emirate as a place in which to live, work and invest.
Q1 2019 asset management highlights included two transactions in the first quarter: In March acquired full ownership of Etihad Plaza and Etihad Airways Centre in an AED 1.2 billion non-cash transaction that unwound three existing joint venture agreements with Etihad, a deal which is expected to add approximately AED 100 million in NOI on an annualised basis.
In March sold Al Murjan Tower for AED 289 million for an implied 6.6 percent yield, in line with Aldar Investments' strategy to realise value and redeploy capital in new high-potential opportunities Development revenue backlog stands at AED 4.3 billion as at 31 March 2019.