Aldar Properties based out of Abu Dhabi has announced a 28 percent year-on-year decline in profit of second quarter, which it mentioned was partly because of a revaluation of properties in the company’s retail portfolio.
Chief financial officer Greg Fewer stated to the media on a call on Tuesday, “We are seeing some headwinds; in the retail portfolio, we renewed leases and updated book values.”
In a regulatory filing to the Abu Dhabi Securities Exchange, the company announced a net profit attributable to shareholders of AED 445 million for the period ending on June 30.
In a phone call with journalists on Tuesday, Fewer stated that, “Aldar handed over an exceptionally high amount of infrastructure assets to the government [in Q2], which also contributed this year, but just not at the same level as last year.”
In its statement of results published on Tuesday, the company mentioned that overall profit reached AED 1.1 billion ($299.46 million) in the first half of 2018 and AED 445 million ($121.14 million) in Q2, the company told on Tuesday.
The company said that Aldar’s H1 2018 revenue was increased 2 percent to AED 3 billion ($816.73 million).
CEO of Aldar Properties, Talal Al Dhiyebi stated, “Aldar delivered a solid underlying performance for the first half of 2018 alongside a number of landmark announcements.”
He even said, “In the development business, we launched a new master-planned community Alghadeer and reinforced our reputation for delivery as we commenced handover of land plots and villas at Nareel Island, Al Merief and West Yas.”
Al Dhiyebi mentioned that the company confirmed its position with the acquisition of prime real estate assets from Abu Dhabi’s Tourism Development and Investment Company (TDIC).
He said, “The transactions, completed in just 60 days after being announced, adds AED 3.6 billion ($1 billion) of strategic and development assets to our existing portfolio.”
As per Aldar, development sales for H1 2018 totalled AED 1.1 billion ($299.46 million), with AED 372 million ($101.28 million) in Q2, while its asset management portfolio delivered a 6 percent rise in overall operating income to AED 377 million ($102.64 million) in Q2, when compared to AED 357 million ($97.19 million) in Q2 2017.
The company reported that occupancy remained healthy throughout its portfolio, with residential occupancy standing at 91 percent as of June 30, while occupancy in the commercial portfolio was 91 percent and Yas Mall at 89 percent. The hospitality portfolio recorded occupancy levels of 74 percent in H1 2018.
As a future perspective, Fewer stated that the company was sure that conditions would get better in the third quarter, following a $13.6 billion economic stimulus package reported by Abu Dhabi in June.
Reuters quoted him as saying, “We are excited about the stimulus from the government, there are programmes coming in the third quarter…so a very solid market backdrop to drive sentiment.”
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