Aldar Q1 profit up 15% on recurring revenue

Aldar Properties' net profit for the first quarter ended March 31, 2016, increased 15 per cent to Dh654 million from Dh571 million in Q1 2015.
Recurring revenue helped drive net profits. In the first quarter, gross profit from recurring revenue increased by 10 per cent to Dh403 million versus Dh368 million in the same period of 2015, reflecting the impact of Yas Mall, which is now fully trading.
Revenue across the group rose four per cent during Q1 to Dh1.23 billion compared to Dh1.18 billion in Q1 2015. This was supported by growth in recurring revenue, which represented 61 per cent of total revenue in the first three months of 2016.
During the first quarter, Aldar sold 320 units worth Dh940 million in off-plan sales.
Mohamed Khalifa Al Mubarak, CEO of Aldar Properties, said: "Aldar has had a solid first quarter of the year. We have seen strong demand for high-quality real estate products, and our recurring revenue asset portfolio continues to stabilise. Our development and asset management businesses are well matched to underlying demand and our balance sheet remains extremely strong."
Aldar's residential and office portfolios maintained strong occupancy levels in Q1 2016, supported by continued demand for high quality residential and office space in Abu Dhabi. Hotel occupancy was 81 per cent during Q1 2016, down from 86 per cent in Q1 2015, but still ahead of the wider Abu Dhabi market.
During Q1, Aldar achieved sales of Dh940 million across Aldar-owned developments and West Yas. Aldar sales included 188 units worth Dh324 million predominantly relating to the Mayan, Meera and Al Nareel development projects. West Yas sales included 132 units worth Dh616 million.In April, Aldar announced the launch of Yas Acres, a Dh6 billion golf and waterfront development, including 1,315 villas and townhouses.
The project is one of the most significant new residential developments to be launched on Yas Island. In addition and following substantial interest in Mayan, a further 144 units were launched in April, taking the total units launched to 512.
"We continue to see high levels of interest in quality real estate product among buyers, driving demand for our developments, which offer lifestyle amenities in desired locations such as Yas Island, Shams Abu Dhabi and Al Raha Beach," Al Mubarak added.
- business@khaleejtimes.com