Aldar Properties said government initiatives have spurred economic growth and are having a positive multiplier effect on the wider Abu Dhabi economy
Aldar Properties, Abu Dhabi’s leading property development, management and investment company, announced a 7 percent increase in net profit for Q2 compared to the same period last year, on the back of strong project launches and an upswing in sentiment towards the emirate’s real estate market.
In a statement of results, the company said that net profit reached $129m (AED476m) in the second quarter, compared to Q2 2018.
Aldar’s Q2 2019 revenue was up 10 percent to $452m (AED1.66 billion), the company said.
Off-plan development sales for Q2 soared 129% to $232m (AED853m), while its asset management portfolio delivered a 5 percent increase in net operating income to $107m (AED396m), with strong performance from hospitality and fully owned adjacent businesses Aldar Academies (schools), Provis (property management) and Khidmah (facilities management).
Talal Al Dhiyebi, chief executive officer, Aldar Properties, said: “There is an upswing in sentiment towards Abu Dhabi‘s real estate market with the recent announcement of our $2.4bn (AED9bn) worth of development projects since the start of 2019.
“Those, coupled with government initiatives to spur economic growth, are having a positive multiplier effect on the wider Abu Dhabi economy and stirring confidence. This is reflected in our strong performance for the period, underpinned by near $544m (AED2bn) in off plan sales.”
The company noted that occupancy across its investment property portfolio, which includes retail, residential and commercial, remained healthy at 90 percent as of June 30, while occupancy in the hospitality portfolio reached 77 percent for the first six months of the year.