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Thu 21 May 2020 11:30 AM

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Abu Dhabi's Aldar profits drop 39% in Q1

'Aldar continues to prudently manage its business to mitigate the impact of the global crisis,' said CEO Talal Al Dhiyebi

Abu Dhabi's Aldar profits drop 39% in Q1

Talal Al Dhiyebi, Aldar’s CEO.

Abu Dhabi’s Aldar Properties saw first quarter revenues fall to AED 302 million ($82.2m), a 39 percent decrease from the previous year, which the company said was largely the result of a one-off adjustment, the company said in a statement on Thursday.

In the statement, Aldar said that revenue for the first three months of the year remained stable at AED 1.76 billion.

Additionally, Aldar noted that its asset management business in particular had been impacted by the Covid-19 pandemic.

“Aldar continues to prudently manage its business to mitigate the impact of the global crisis and enhance long-term value for our stakeholders,” said Talal Al Dhiyebi, Aldar’s CEO.

“We benefit from the financial firepower to weather the current global crisis, and to take advantage of attractive opportunities to expand our investment portfolio,” he added.

Aldar noted that residential occupancy levels stood at 88 percent, compared to 91 percent in commercial properties. Retail asset occupancy stood at 89 percent.

As a result of the virus, Aldar’s hospitality and leisure portfolio saw losses of AED 19.7 million. Hotel occupancy stood at 64 percent for the quarter.

The company’s development business saw a 13 percent increase in revenue, to AED 808 million. Sales, for their part, totalled AED 333 million.

In March, Aldar rolled out support programmes worth AED 190 million to help its tenants, homebuyers, students and business partners during the pandemic, including rental and school fee payment plans and support for SMEs.

“We acted decisively to safeguard the health and safety of our people and customers and engaged responsibly by launching a comprehensive support package for our business partners and communities,” Al Dhiyebi said.

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