- Aldar Investment’s Q3 revenue grew 4% YoY to AED 792 million and net operating income (NOI) increased 1% YoY to AED 392 million, mainly driven by strong performance by the retail portfolio and ongoing recovery in the hospitality and leisure business. Nine-month NOI was up 5% at AED 1.17 billion.
- The Investment Properties portfolio’s Q3 NOI held firm at AED 337 million. Occupancy across the portfolio of diversified properties increased to 91% in Q3 from 88% a year earlier. NOI for the first nine months of the year was 1% higher YoY at AED 983 million.
o Residential NOI for the nine-month period decreased 1% YoY to AED 352 million, mainly due to expiry of the Khalidiya Village leasehold. The overall portfolio showed continued strength, reaching average occupancy of 92% in Q3, up from 88% a year earlier, supported by rising occupancy in our Reem Island apartment buildings and Sas Al Nakhl villa community. Aldar continued the sale of strata residential units as part of its monetisation strategy, with AED 149 million in YTD sales at an average of 11% above book value.
o Retail NOI increased 9% YoY to AED 332 million in the nine-month period, mainly attributed to higher footfall and sales. Within the portfolio, the food and beverage (F&B) segment witnessed a strong performance, driven by improving consumer confidence and a ramp-up of dining destinations, especially in Mamsha. Occupancy rates rose to 88% in Q3, from 85% a year earlier, and is expected to increase further as handovers at Yas Mall progress, in line with the asset’s redevelopment plan.
o Commercial NOI declined 4% YoY to AED 299 million in the nine-month period due to a reduction in revenue in Operative Villages. The core office portfolio saw an increase in leasing activity with more than 22,000 sq.m. of new leases and renewals in the nine-month period. Occupancy rates across Aldar’s Grade A office properties remained resilient at 89%, supported by long-term, committed lease contracts from government-related entities and corporate clients. The Hospitality and Leisure business continues to recover with 128% YoY growth in NOI for the nine-month period, driven by prudent cost management. While performance remains impacted by travel restrictions, several important announcements, including the easing of Abu Dhabi border restrictions and exemptions from quarantine travel requirements, are expected to boost activity.
- Aldar Education reported a 27% increase in nine-month NOI to AED 124 million, driven by a 3% increase in student numbers to 26,370, compared to 25,630 in the same period last year.
- Within the Principal Investments business, Aldar’s property management company Provis produced a 99% increase in nine-month NOI driven by new contracts. Currently, Provis includes a portfolio of 52,000 residential units, 490,000 Gross Leasable Area (GLA) of retail assets, and 318,000 sqm of commercial assets under management. Khidmah, Aldar’s wholly owned facilities management business, witnessed 13% growth in nine-month NOI.