Abu Dhabi real estate developer Aldar Properties has reported a 2 percent drop in net profit for the first quarter of 2017, to AED641 million ($174 million).
Net profit for the first quarter of 2016 was AED654 million ($178 million).
However, gross profit for the developer rose by 39 percent in the first quarter to AED753 million ($204 million), driven by AED1 billion ($272 million) of development sales over the period, including at West Yas, Al Nareel and land plot sales.
Revenue grew 28 percent to AED 1.58 billion ($430 million), driven by revenuve recognition on developments under construction and, again, land plot sales, Aldar said, and net operating income was AED402 million ($109 million).
Aldar has an AED3 billion ($816 million) investment programme to further grow recurring revenues, and all developments remain on track, with Ansam, Al Hadeel and Al Nareel set for handover this year, the developer reported.
Meanwhile, a total AED2.3 billion ($625 million) of construction contracts have been awarded over the year to date at Yas Acres and Mayan.
Last month, Aldar launched The Bridges, a six-tower mid-market development comprising 1,272 units. Three towers will form part of the recurring revenue investment plan while the remaining three have been launched for sale and subsequently sold out.
Aldar Properties CEO Mohamed Khalifa Al Mubarak said: “Demand for our high quality products in key destinations has resulted in a robust performance this quarter.
“Looking forward, our fully committed AED3 billion investment programme paves the way for future growth in recurring revenues.
“Our latest development, The Bridges, sold out in three weeks demonstrating real demand for the right product at the right price. There is strength in the Abu Dhabi market.”
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