Aldar Properties reported a net profit of AED1.11bn in the first six months of 2018 (H1), a decrease by 11.4% as compared to AED1.26bn in the same period last year.
The Abu Dhabi-based developer also posted a 28.2% drop in its second quarter (Q2) net profits to AED445mn as against AED620mn in the same period in 2017, disclosed a statement on Abu Dhabi Securities Exchange (ADX).
However, H1 2018 revenue went up 2% to AED3bn as against AED2.9bn in H1 2017, driven by revenue recognition on developments under construction and recent asset acquisition. In addition to that, the Q2 2018 revenue went up 12% to AED1.5bn as compared to AED1.4bn in Q2 2017 supported by recent asset acquisition.
Commenting on the results, Talal Al Dhiyebi, chief executive officer of Aldar Properties, said: Aldar delivered a solid underlying performance for the first half of 2018 alongside a number of landmark announcements. In the development business, we launched a new masterplanned 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.
We have cemented our position as Abu Dhabis leading real estate investment company by completing one of the countrys largest-ever real estate acquisitions. The transaction, completed in just 60 days after being announced, adds AED3.6bn of strategic operating and development assets to our existing portfolio, which continues to deliver a resilient and consistent performance, positioning us well for future growth.
Development sales for the first half of the year were AED1.1bn, driven by sales of developments under construction, and two newly launched developments that build on Aldars destination strategy.
Aldars asset management portfolio of residential, retail, office and hospitality properties delivered another resilient performance, with a 6% increase in net operating income to AED377mn during Q2 2018, compared with AED357mn in Q2 2017.
Occupancy remains healthy across the portfolio. Residential occupancy as at 30 June 2018, stood at 91%, while occupancy in the commercial portfolio was 91% and Yas Mall was steady at 89%. The hospitality portfolio recorded occupancy of 74% during the first six months of 2018.