Aldar Properties Q1 2016 net profit increases 15% to AED 654 million
Abu Dhabi - UAE, May 10, 2016: Aldar Properties PJSC ("the Company"), Abu Dhabi's leading listed property development, investment and management company, today announced net profit of AED 654 million for the first quarter ended 31 March 2016, up 15% from AED 571 million in Q1 2015*.
In the first quarter, gross profit from recurring revenue increased by 10% to AED 403 million versus AED 368 million in the same period of 2015 predominantly reflecting the impact of Yas Mall, which is now fully trading. Revenue across the group rose 4% during the first quarter to AED 1.23 billion compared to AED 1.18 billion* in Q1 2015. This was supported by growth in recurring revenue, which represented 61% of total revenue in first three months of 2016.
During the first quarter, Aldar sold 320 units worth AED 940 million in off-plan development sales, continuing to demonstrate demand for Aldar's real estate developments in Abu Dhabi.
Q1 2016 Key Financial Highlights:
(AED million)Q1 2016Q1 2015*% changeNet profit65457115%Revenue1,2321,1794%Gross profit from recurring revenue40336810%
* Q1 2015 figures reflect the adoption of IFRS 15 revenue recognition accounting policy which was retrospectively implemented from 1 January 2015.
H.E. Mohamed Khalifa Al Mubarak, CEO of Aldar Properties, said:
"Aldar has had a solid first quarter of the year. We have seen strong demand for high-quality real estate products, and our recurring revenue asset portfolio continues to stabilise. Our development and asset management businesses are well matched to underlying demand and our balance sheet remains extremely strong.
We continue to see high levels of interest in quality real estate product among buyers, driving demand for our developments, which offer lifestyle amenities in desired locations such as Yas Island, Shams Abu Dhabi and Al Raha Beach."
Q1 2016 Operational Highlights
Gross profit from recurring revenue assets grew 10% in Q1 2016 versus the same period last year reflecting the impact of Yas Mall which is now fully trading. The residential and office portfolios maintained strong occupancy levels as at the end of the first quarter 2016 supported by continued demand for high quality residential and office space in Abu Dhabi. Hotel occupancy was 81% during Q1 2016, down from 86% in Q1 2015, but still ahead of the wider Abu Dhabi market.
During the quarter, Aldar achieved sales of AED 940 million across Aldar owned developments and West Yas demonstrating continued demand for Aldar's real estate product. Aldar sales included 188 units worth AED 324 million predominantly relating to the Mayan, Meera and Al Nareel development projects. West Yas sales included 132 units worth AED 616 million.
In April, Aldar announced the launch of Yas Acres, an AED 6 billion golf and waterfront development including 1,315 villas and townhouses. The project is one of the most significant new residential developments to be launched on Yas Island, a key focus of Aldar's destination approach, and has received strong initial interest. In addition and following substantial interest in Mayan, a further 144 units were launched in April taking the total units launched to 512.