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Aldar profit rises 9% in Q3

Growth in recurring revenue portfolio drives performance.

Abu Dhabi: Aldar Properties on Tuesday said its third-quarter net profit rose nine per cent to Dh638 million due to the continued growth in recurring revenues and higher profit contribution on development projects despite lower revenues.
The UAE's second-biggest real estate developer said its year-on-year gross profit from recurring revenue assets grew 47 per cent during September-October 2015 quarter to Dh349 million, driven by Yas Mall and the contribution of the fully-leased and occupied residential portfolio.
The expanded recurring revenue asset base, which predominantly includes retail, residential, office and hotel assets, grew significantly quarter on quarter.
This was primarily driven by the impact of Yas Mall, which opened in November 2014, and the stabilisation of the expanded residential portfolio, the property developer said in a regulatory filing to the Abu Dhabi Securities Exchange.
The group has seen an overall improvement in operational performance following successful leasing activities of office assets and improved hotel financial performance.
"The third quarter recurring revenue asset gross profit margins were 52 per cent versus 45 per cent in the same period last year," the developer said.
The unrestricted cash position increased to Dh5.9 billion as at September 30, 2015, following strong cash flow generation during the quarter, including the receipt of a Dh545 million government receivable in relation to infrastructure recoverable costs.
In August, Aldar launched West Yas, a residential development on Yas Island exclusively for UAE nationals, consisting of 1,017 four- and five-bedroom luxury villas located along the island's natural mangroves.
Three hundred units were sold in phases one and two, which were launched on October 12 and are currently under way.
Gross debt remained stable at Dh7.1 billion as at September 30, with undrawn committed facilities of Dh1.8 billion.
Mohammed Al Mubarak, CEO of Aldar Properties, said the company has delivered "a solid performance by executing on our strategy to fully stabilise our recurring income portfolio and by bringing new quality developments to market".
"We continue to see strong demand in residential sales with Shams Meera and West Yas both performing well in the quarter, demand we will continue to respond to with quality residential products."
Strong cash flow generation, supported by government of Abu Dhabi receivables, resulted in a closing unrestricted cash position of Dh5.9 billion as at the end of the period.
According to Aldar Properties, 355 units are now trading at the fully-leased Yas Mall; key anchors Apple Store and Tryano opened in October and November, respectively.
The company reported 99 per cent occupancy across a 4,800-unit strong residential portfolio; 92 per cent were leased across its office portfolio following further leasing agreements signed.
The first nine months saw occupancy across the hotel portfolio at 79 per cent in line with the same period in 2014, ahead of Abu Dhabi market levels.
On the development side, Aldar's new project Meera reached 80 per cent of total units sold to date, while Mayan, a new prime residential development on Yas Island, will be launched on November 15.
haseeb@khaleejtimes.com