Abu Dhabi’s largest property developer Aldar on Tuesday said its net profit for the first quarter (Q1) of the financial year (FY) 2021 jumped 80 per cent to Dh544 million(m), as against Dh302m for the corresponding period last year on higher sales as well as a one-off gain related to the completion of the previously announced transaction with ADQ.
But if adjusted for the one-off gain related to the Abu Dhabi-based holding group ADQ's transaction, Aldar’s net profit was up 47 per cent year-on-year.
In October 2020, ADQ and Aldar signed a deal under which the latter would take over the development and management of government capital projects with a total value of approximately Dh30 billion (b).
Aldar Properties said its revenue increased 16 per cent year on year to Dh2b and gross profit rose 11 per cent to Dh776m during the January-March period, which is Q1 of FY 2021.
Aldar property sales more than tripled to above Dh1b for the third consecutive quarter, as investors' confidence returned with a significant boost to the Covid-19 vaccination drive.
The sales were driven by existing inventory at mid-to-high-end destinations including Water’s Edge, West Yas, Mamsha, and Saadiyat Reserve with demand coming from a range of end-users and investors as expatriate residents and foreign investors account for an increasing proportion of purchases. Cash collections for handovers and stage payments in Q1 2021 were Dh929m.
“Aldar Development’s strong quarter in sales demonstrates a return of consumer confidence and our ability to meet a growing demand among a range of buyers, with expatriate residents and other foreign investors accounting for an increasing proportion of residential purchases. We will continue to capitalise on the strong demand momentum with exciting new launches,” said Talal Al Dhiyebi, Group Chief Executive Officer (CEO) of Aldar Properties.
“Aldar Investment produced a resilient performance despite the impact of the global pandemic on tourism-focused assets and is testament to the value of active asset management, cost efficiency initiatives, and the strength of our diversified portfolio,” he said.
“Thanks to the UAE’s vaccination programme, we can now begin to look beyond Covid-19 and to a return of the UAE economy to its long-term growth trajectory, with improving real estate supply-demand dynamics,” Al Dhiyebi added.