Abu Dhabi’s Aldar Properties’ Q1-2021 net profit soars 80% to Dh544m

Stock - Aldar Noya Viva Masterplan
Aldar scored a second successive hit with its ‘Noya’ communities on Yas Island. All of the releases were snapped up within hours, many of whom were firs-time buyers. Image Credit: Aldar

Dubai: Abu Dhabi master-developer Aldar recorded a strong 80 per cent year-on-year gain in net profit to Dh544 million for the first three months of 2020. This was derived from revenues of Dh2 billion.

Aldar was the first to come up with an offplan launch after the COVID-19 outbreak last year, and it had another one recently. Both scored big-time with investors. “We will continue to capitalise on the strong demand momentum with exciting new launches,” said Talal Al Dhiyebi, CEO. “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.”

Aldar recorded a one-off gain related to completion of a previously announced transaction with Abu Dhabi holding company ADQ, but fair value adjustments on investment properties decreased from a year earlier. (Even adjusting for the one-off gain, the Group’s core net profit was up 47 per cent year-on-year.)

Cash in bank

The balance-sheet “remains robust, with debt levels well within the company’s policy ranges,” Aldar said in a statement. “Strong liquidity position with Dh3.3 billion of unrestricted cash driven by strong cash collections and Dh4.2 billion of undrawn committed bank facilities.”

The revenue backlog as of March 31 was Dh3.35 billion, more or less unchanged from end December. The backlog will be supported by “new project launches, including the sell-out launch in April of ‘Noya Viva’, which generated Dh1 billion in sales.”

Egypt update

Aldar is leading a consortium of investors that submitted a non-binding offer to acquire a

majority stake in one of Egypt’s listed leading real estate development companies, Sixth of October

Development and Investment Company.

The offer is subject to a due diligence process as well as

applicable regulatory approvals and other conditions.