Aldar posts Dhs544m net profit

Aldar Properties reported Dhs544 million in net profit for Q1-2021, a growth of 80 per cent year-on-year (YoY). The company said in a statement that its revenue increased 16% YoY to Dhs2.0 billion, driven by a strong increase in property development sales and a ramp-up of the project management business.

Gross profit rose 11% YoY to Dhs776 million, with a significantly higher contribution from Aldar Development. Aldar recorded a one-off gain related to completion of the previously announced transaction with ADQ while fair value adjustments on investment properties decreased from a year earlier.

Net profit increased 80% YoY to Dhs544 million. Adjusting for the one-off gain related to the ADQ transaction the Group’s core net profit was up 47% YoY.

Commenting on the company’s financial performance, Talal Al Dhiyebi, Group Chief Executive Officer of Al Dar Properties, said: “We have achieved a strong start to the year across Aldar’s diversified businesses, as our new operating model delivers growth and efficiency. Aldar Development’s strong quarter in sales demonstrates a return of consumer confidence and our ability to meet 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. 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. Moreover, our proactive engagement with our stakeholders continues to enhance Aldar’s value proposition as a trusted brand.”

WAM