Abu Dhabi-based real estate developer, Aldar Properties, reported a 3.8% drop in its net profits for the first six months of 2017, to AED1.26bn from AED1.31bn in the same period last year.
The company reported H1 2017 revenue of AED2.93bn supported by revenue recognition on developments under construction. In addition, Aldar posted Q2 2017 net profit as AED620mn as against AED654mn in the same period last year.
Commenting on the results, HE Mohamed Khalifa Al Mubarak, CEO of Aldar Properties, said: Aldar has delivered a solid set of results for the first half of the year. Robust occupancy across our portfolio of investments demonstrates our resilience as an asset manager and the success of our most recent residential development, The Bridges, clearly shows there is strength in the Abu Dhabi property market. The unprecedented response to The Bridges, which sold out in a matter of weeks, showcases the opportunities presented by the mid-market and supports our strategy to continue to focus on this segment.
The Abu Dhabi governments unveiling of an AED12bn development plan for Yas Island will accelerate its transformation into a global urban, entertainment and business hub. Aldar is pleased to have been chosen to develop the AED 1 billion media and entertainment zone in the project, set to become home to thousands of working professionals who will further enrich the Yas Island destination.
In April, Aldar launched its 1,272 unit, AED1.3bn mid-market residential development, The Bridges, on Reem Island. The launch met with a very positive response, with all three towers released to the market sold out in weeks. This contributed to Aldars AED1.8bn of development sales value during the first six months of 2017.
During the second quarter, twofour54 appointed Aldar as the strategic real estate partner of the Abu Dhabi Media Zone Authority, to develop a new, permanent home as part of an AED12bn development on Yas Island. In addition, it is set to attract 5,000 working professionals from the media sector, further building the Yas Island community.
Three key developments, Ansam, Al Hadeel and Nareel Island, are set for handover from Q4 2017, with construction entering final stages. Al Merief, Meera, Mayan, Yas Acres and West Yas are all progressing well and on track for their respective completion dates.
Aldar achieved stable occupancy above 90% across its residential and office portfolio as well as Yas Mall. The hospitality portfolio recorded occupancy of 78%, against the Abu Dhabi market of 70%. During the quarter, Aldars flagship retail asset, Yas Mall, launched a 24-hour mega sale over Eid Al Fitr, which was the first of its kind in the emirate.
Four new investments were committed during the first six months of 2017, completing Aldars AED3bn investment programme.