By Bernd Debusmann Jr
The company saw a 53% increase in development sales, as well as a 30% increase in hospitality profit
Abu Dhabi-based Aldar Properties reported a seven percent increase in net profit to AED1.984 billion ($540.1m) for 2019 amid government measures that have led to improvements in some segments of the real estate market, the company said in a statement on Wednesday.
In the statement, Aldar said that net operating income from recurring income assets totalled AED1.7bn ($462.8m), a six percent increase year-on-year, driven by the additions of Etihad Plaza, Etihad Airways Centre and Al Jimi Mall extension.
Aldar also saw record development sales in 2019, which rose 53 percent to AED4bn ($1.089bn). The backlog of development revenue to be recognised in future grew to AED4.4bn ($1.19bn) at the end of the year.
The statement added that average occupancy stood at 89 percent across its investment properties portfolio, which Aldar said reflects the quality of that asset class.
“Abu Dhabi’s real estate market is benefitting from an economy that is transitioning to a global cultural, business and trade hub thanks to government investments and newly introduced pro-business policies,” said Aldar chairman Mohamed Khalifa Al Mubarak.
Al Mubarak added that Aldar “has been able to swiftly convert those emerging opportunities to generate additional value for our shareholders”.
“Looking ahead, our unique portfolio of investment properties and valuable land bank will enable us to continue to deliver attractive returns to our shareholders,” he said.
Additionally, Aldar’s hospitality gross profit rose 30 percent, while revenue per average room went up eight percent, driven by Abu Dhabi’s events calendar and the heavy promotion of its tourism and leisure sector.
The company also saw growth in various adjacent businesses. Aldar Academies, for example, tripled student numbers to 22,000 over the last two academic years.
“As the Abu Dhabi government’s fiscal growth programme takes effect, we are seeing clear signs of growth in key segments of the real estate market,” said Talal Al Dhiyebi, the CEO of Aldar.
“The improving operating environment is feeding into Aldar’s performance, through a 53 percent increase in development sales, a 30 percent increase in hospitality profit, and an 80 percent rise in profit from Aldar Education,” he added. “We remain confident in our platform’s ability to grow and deliver sustainable returns to our shareholders.”For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.