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Handovers at Abu Dhabi’s Gate Towers drive Aldar Q2 profit jump

Aldar Properties, Abu Dhabi’s largest real estate developer, reported a jump in its second-quarter net profit this morning, after excluding one-time merger gains in the corresponding period last year.

The builder made a quarterly profit of Dh506 million, up 168 per cent from Dh189m a year earlier and up 12 per cent from Q1, it said.

The year-earlier figure excluded Dh1.06 billion gained from Aldar’s state-backed merger with rival Sorouh Real Estate last year.

Aldar said in a statement that “the net profit for the second quarter was primarily driven by the continued handovers of units at the Gate Towers and strong growth in residential leasing revenues on the back of a successful leasing campaign principally at the Al Rayyana development”.

The number for the second quarter of this year was roughly in line with the forecasts of analysts surveyed by Reuters, who had on average predicted a profit of Dh511m for the period.

Mohammed Khalifa Al Mubarak, chief executive of Aldar Properties, said: “We have seen another robust set of quarterly numbers reflecting focussed execution as we continue handing over high-quality units at the Gate and further reduced our cost of borrowing.

“The operational achievements during the quarter have been particularly impressive with sales and leasing activity at an all-time high, as our residential properties continue to benefit from a flight to quality.

“Looking ahead, we have made a strong start with the new development pipeline with project launches that have opened up the Abu Dhabi off-plan sales market. These launches will help to drive future earnings growth as we start to monetise our extensive land bank for the benefit of our shareholders.”

* with Reuters

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