Business

Aldar posts Dh302 million Q1 profit

Aldar posts Dh302 million Q1 profit

Aldar Properties reported on Thursday a 39 per cent fall in first-quarter profit to Dh302 million on a revenue of Dh1.76 billion.

The revenue remained unchanged from the same period a year ago, "demonstrating the fundamental strength of its diversified businesses," the company said.

The developer recorded a gross profit of Dh699 million, driven by diversified, multi-asset class portfolio, while reporting a strong balance sheet and liquidity, with Dh 6.8 billion of free cash and undrawn credit facilities.

Warning that it could delay new project launches due to the Covid-19 pandemic, the sate-owned builder said the decline in net profit was mainly due to a one-off write down in the value of recurring income assets while a 68 per cent fall in pre-construction sales to Dh333 million was because no new projects were launched in the first quarter.

Mohamed Khalifa Al Mubarak, Chairman of Aldar, said: "Abu Dhabi's leadership has been proactive and resolute in safeguarding the health of its residents and the economy. The comprehensive response by the Government and Central Bank is supporting confidence and positioning the Abu Dhabi market for an effective recovery. As an industry leader, Aldar will continue to play a transparent and responsible role towards a more sustainable future. We are proud of the collaborative community spirit which reinforces Abu Dhabi's sense of home for citizens and residents alike."

Talal Al Dhiyebi, CEO of Aldar said as a leading Abu Dhabi company, Aldar acted decisively to safeguard the health and safety of the people and customers and engaged responsibly by launching a comprehensive support package for business partners and communities. "We were able to tackle rapidly evolving conditions, while remaining steadfast in paying a 2019 dividend of Dh 1.14 billion and delivering a strong first-quarter performance."

"We are in a very strong position to navigate this uncertainty because of our diversified business model, low debt level, strong cash position and the underlying strength of the Abu Dhabi economy," chief financial officer Greg Fewer said.

However, because of the market situation the developer was reassessing the timing and phasing of its planned launches, Fewer said.

During the first quarter, Aldar's Development Management business made significant progress across its projects and reported development revenue of Dh 808 million, a 13 per cent year-on-year increase, driven by progress on recently awarded development management government projects valued at Dh 5 billion, including the new twofour54 campus on Yas Island.

Development sales totalled Dh333 million, led by inventory sales. "This meant that, 83 per cent had been sold across its development pipeline. Aldar has leveraged its digital transformation programme to facilitate sales amid government-mandated or recommended guidelines including social-distancing and curfew and has introduced virtual tours for all available units. Moreover, the company has deployed its market leadership position to partner with Abu Dhabi banks to provide attractive financing packages for homebuyers, complementing government and UAE Central Bank incentives to support the real estate sector," the company said in a statement. - [email protected]