Financial results for the second quarter of 2016 have been released for Abu Dhabi's top property development, investment and management company, Aldar Properties PJSC.
Overall financial highlights from the second quarter include a net profit of AED 654 million, which is a nine percent increase from Q2 2015. The gross profit from recurring revenue assets increases 12 percent to AED 382 million versus Q2 2015. In addition, revenues for the quarter total AED 1.7 billion.
Noteworthy elements from the development portion of the operational highlights include off-plan development sales that exceed AED 1 billion. Aldar developments record AED 940 million, which were produced by Yas Acres and Mayan. West Yas noted AED 90 million. Phase one and two of Yas Acres is 80 percent sold, while the first five buildings of Mayan have 75 percent sold.
“Aldar’s second quarter performance highlights the significant progress we have made in building a mature and sustainable business,” Mohamed Al Mubarak, CEO of Aldar Properties, said. “The contribution from our recurring revenue portfolio continued to grow with strong occupancy rates across our assets. The successful launch of Yas Acres in April underlines our commitment to developing attractive destinations, while the Ansam, West Yas and Mayan developments are all helping shape the Yas Island Living experience.”
Important notes from the asset management portion of the operational highlights document a stable performance across key asset classes. Yas Mall trading occupancy is 98 percent, with the residential portfolio occupancy at 96 percent. In addition the office portfolio occupancy is 95 percent and the hotel portfolio sits at 76 percent for a six month period ending June 30, placing ahead of the Abu Dhabi market.
“With over AED 1 billion in off-plan sales during the quarter, AED 1.9 billion in the first six months of 2016, we continue to see strong demand for our high-quality real estate products,” Al Mubarak said. “We remain a strong, resilient business with a clear strategy that is focused on creating long-term value for our shareholders.”