Aldar Delivers 34 Percent Increase in Underlying Gross Profit for 2017
Aldar Properties PJSC (“the Company”), delivered a robust performance across its two business pillars during 2017.
FY 2017 Financial Highlights:
- Underlying gross profit growth of 34% to AED 2.7 billion driven by activity on projects under construction.
- Development sales hit AED 3.5 billion, ahead of guidance.
- Solid fourth quarter development sales of AED 1.2 billion driven by Water’s Edge and West Yas.
- Underlying revenue was up 26% to AED 6.2 billion.
- Asset Management business achieved AED 1.6 billion net operating income guidance, supported by resilient performance and particularly strong fourth quarter.
- Net profit of AED 2.0 billion, impacted by a 3% value adjustment to our asset management portfolio.
- 12 fils per share dividend for 2017 proposed, up 9% from 11 fils per share in 2016.
Commenting on the results, H.E. Mohamed Khalifa Al Mubarak, Chairman of Aldar Properties, said:
“Abu Dhabi has a clear and compelling vision, and as the Emirate’s leading property developer, Aldar plays a key role in supporting its growth. Our unrelenting focus on creating attractive urban destinations for visitors and residents of Abu Dhabi drives our ambitious growth plans and sets a solid foundation for a successful year ahead.”
Commenting on the results, Talal Al Dhiyebi, Chief Executive Officer of Aldar Properties, said:
“Our accomplishments during 2017 validate the success of our destination development strategy. Off-plan development sales hit AED 3.5 billion, demonstrating the rich demand for Aldar’s properties while we expanded our portfolio of owned assets with the acquisition of International Tower, achieving our target of AED 1.6 billion in net operating income.
“We have bold plans for 2018 - exciting development launches and seeking opportunities to grow our portfolio in existing and new markets. With solid foundations, an extensive land bank, deep industry experience and an enviable portfolio of assets, Aldar is well positioned to achieve its strategy to deliver desirable destinations in Abu Dhabi in 2018 and beyond.”
Balancing our commitment to rewarding shareholders for their loyalty while maintaining a strong financial profile to facilitate growth, Aldar is proposing a 12 fils per share dividend to the Board for 2017. It is also providing further clarity on its progressive dividend policy, by extending the defined pay-out range policy to the Development Management business from 2017.
Operational Highlights - Development
Aldar launched two new residential developments – The Bridges and Water’s Edge – during 2017, targeting a broader spectrum of the market. The response to these developments was exceptional with almost all units selling out in a matter of weeks following their respective launches in April and September. Aldar recorded AED 3.5 billion in development sales across 1,900 units during the year, both ahead of guidance.
Aside from off-plan launches, construction is ongoing at Aldar’s other developments with AED 3 billion awarded in construction contracts for the year. The handover of Ansam to customers began in December 2017, marking the establishment of Yas Island’s permanent residential population, creating communities with close proximity to Aldar’s leisure assets on the island. Al Hadeel, located on Al Bandar, also started handover in December 2017. Nareel Island, West Yas and Al Merief are entering final stages of construction and are on track to be handed over during the first half of 2018.
Operational Highlights - Asset Management
Aldar’s asset management portfolio of residential, retail, office and hospitality properties delivered a resilient performance during 2017 recording AED 1.6 billion net operating income, in line with FY 2016 and guidance. This was supported by a strong fourth quarter with high occupancy and rates at Aldar’s portfolio at hotels, mainly driven by the busy calendar of events on Yas Island and the acquisition of International Tower.
Residential portfolio occupancy remained steady at 91% as at 31 December 2017. Occupancy at the expanded office portfolio and Yas Mall stood at 88% and 94% respectively. Full year hospitality portfolio recorded occupancy in the of 78%, outperforming the wider Abu Dhabi market of 72%.
Aldar Properties is undertaking multi-billion Dirham civic projects to help develop Abu Dhabi, the capital emirate of the United Arab Emirates, into an international business magnet and tourist destination. As the Emirate’s premier real estate development, management and investment company, Aldar’s vision is to establish Abu Dhabi as the UAE’s most dynamic forward-thinking real estate market by creating unique and prestigious developments that can be used as a benchmark of quality, whilst adhering to the cultural and natural heritage of the city.
Since launching in 2005, the company has announced assignments worth more than $75 billion USD, in a property development portfolio diverse in scope and style, attracting considerable worldwide interest and inward investment. The development company is owned by leading Abu Dhabi institutions, shareholders and investors, providing them with a sound long-term portfolio.
Aldar Properties has a key competitive advantage due to its sound financial backing, large resources, the high level of management expertise and the Government’s support in undertaking large-scale, market-driven projects which add value to the Emirate’s booming property industry.
Aldar’s financial credibility has been recognized by world renowned credit rating institutions. In 2008, Aldar was assigned a high rating of A3 by Moody’s Investors Service and a solid A- by Standard & Poor’s (S&P). More recently, Morgan Stanley Research Europe cited Aldar as the leading developer in Abu Dhabi’s real estate sector.
Aldar is committed to producing developments that balance the need for infrastructure with environmental sustainability. The company owns over 50 million square metres of land in strategic locations throughout the Emirate. The current property portfolio includes major developments and re-developments within the Emirate of Abu Dhabi. These include Yas Island, Al Raha Beach, Central Market, Nareel Island, and Noor Al Ain.
At the core of what Aldar stands for is the corporate focus on balancing the evolving needs of a modern city while maintaining and conserving the environment. Aldar’s projects seek to prioritise both the immediate and future physical, social and economic requirements of the United Arab Emirates and Abu Dhabi for the benefit of those who live and work in the region.
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