Aldar Properties reports an 8% increase in net profit to AED 2.8 billion for 2016
Abu Dhabi - UAE, February 14, 2017: Aldar Properties PJSC ("the Company"), Abu Dhabi's leading listed property development, investment and management company, today announced net profit of AED 2.8 billion for the financial year ended 31 December 2016, up 8% from AED2.6 billion in 2015.
Underlining Aldar's commitment to returning capital to shareholders, the company has proposed an 11 fils per share dividend for 2016, up from 10 fils per share in 2015.
Development business highlights:
Total development sales value of AED 3.5 billion across Aldar developments, led by Yas Acres, Mayan and West YasYas Island destination story continues to build momentumThree phases of Yas Acres launched, first two phases already sold outThree further buildings launched at Mayan, 80% sold across first five buildingsAED 3 billion of construction contracts awarded during the year
Asset Management business highlights:
2016 recurring revenue net operating income of AED 1.6 billionYas Mall maintained strong trading occupancy with 94% units trading as at 31 December 2016Residential portfolio occupancy: 92% as at 31 December 2016, a strong performance in the face of a challenging macroeconomic environmentOffice portfolio occupancy: 95% as at 31 December 2016. Stable despite a softer Abu Dhabi office environmentHotel portfolio occupancy for 2016: 77%, ahead the of wider Abu Dhabi market occupancy figure of 73%
Commenting on the results, H.E. Mohamed Khalifa Al Mubarak, CEO of Aldar Properties, said:
"We have enjoyed a solid year in terms of our underlying financial performance and our delivery against our strategic goals. Our business continues to mature and our diverse and robust assets have delivered consistent returns through natural market cycles. We continue to see demand for our destination development strategy to create high quality, well-situated properties in vibrant communities in Abu Dhabi. As a result, our development sales value increased 17% to AED 3.5 billion in 2016. Regarding our asset management portfolio, despite a softer operating environment, we achieved our target of AED 1.6 billion recurring revenue net operating income.
"In 2017, we intend to focus on the opportunities presented by the growing demand for mid-market products in our development business. As for the asset management side, we remain fixed on our long term growth targets, which will be achieved through our AED 3 billion investment programme and we look forward to announcing more details on this programme shortly. We also believe there are further investment opportunities, which our strong financial position gives us the scope and visibility to explore.
"As a result, I am pleased to announce that our Board has proposed an 11 fils per share dividend for 2016, up from 10 fils per share in 2015."