Aldar revenue in Q1 increases 28% on development sales

Aldar said it is seeing significant growth opportunities in the middle-income market.

Aldar Properties, Abu Dhabi's leading property developer, reported on Tuesday a net profit attributable to shareholders of Dh637 million in the three months to March 31 compared with Dh649.05 million in the prior-year period.

The first quarter performance, showing a small drop, beat analysts' forecast. Sico Bahrain and EFG Hermes had forecast Aldar would make a quarterly a profit of Dh509.07 million and Dh600 million respectively.

The listed property developer said it is seeing growth opportunities in the middle-income market.

The company's first-quarter revenue grew 28 per cent to Dh1.58 billion with Dh1 billion of that coming from development sales and Dh402 million from recurring revenue, the developer said in a statement.

Despite higher revenue in the quarter, profit fell as deliveries of completed government projects was minimal in the first three months of 2017 compared with the same period last year, chief financial officer Greg Fewer said.

Aldar's shares were up 1.8 per cent in early trading at Dh2.23.

"We have a significant land bank for more mid-market launches and we are fully committed to our Dh3 billion investment programme by 2020," Fewer said.

Aldar has awarded Dh2.3 billion of construction contracts so far this year. In April, it launched a six-tower mid-market project including 1,272 units, three of which have sold out. On Sunday, Aldar awarded Trojan General Contracting a Dh1.7 billion main construction contract for the first three precincts of its Yas Acres development on Yas Island in Abu Dhabi.

Aldar said in a note to the Abu Dhabi bourse that Trojan would mobilise on site immediately to start work on 652 villas and townhouses, a golf course, a clubhouse and infrastructure at the project, which will eventually comprise 1,315 homes spread across 811,108 square metres.

The contract award follows the completion of a Dh155 million early works package by Bauer Geotechnical Specialised Foundation, which has left the project 10 per cent complete.

Aldar said the construction work would take 32 months and it would hand over the first home at Yas Acres at the end of 2019.

"With the mobilisation of the contractors, we expect to see highly visible progress as these precincts of villas and townhouses start construction," said Talal Al Dhiyebi, the chief development officer at Aldar Properties.

- issacjohn@khaleejtimes.com