Wednesday, Aldar Properties reported its financial results for the first half of 2021, with second-quarter development sales at 2.35 billion dirhams, the highest ever for a three-month period.
For the Abu Dhabi company, this brought total sales in the first half to Dh3.4 billion and revenue backlog to Dh4.25 billion.
The company’s revenue, gross profit, and net profit for the second quarter were up nine percent, 15 percent, and eight percent, respectively, at Dh2.19 billion, Dh824 million, and Dh521 million. In the first half, those segments grew by 12 percent, 13 percent, and 35 percent to Dh4.23 billion, Dh1.60 billion, and Dh1.06 billion, respectively.
“Aldar’s diversified businesses have achieved significant uplift in activity over the last 12 months. Development launches have ramped up, third-party management fees have climbed as projects gathered pace, and our education and property management businesses have built considerable scale,” CEO Talal Al Dhiyebi said in a statement.
Gross profit for Aldar’s Development unit increased 10% to Dh444 million. Meanwhile, its Investment arm reported a 23 percent increase in recurring net operating income to Dh375 million.
The group maintained its strong liquidity position with Dh4.45 billion of unrestricted cash and dh4.5 billion of undrawn committed facilities will fuel sustainable and long-term growth opportunities.
42 percent of Aldar’s total buyers are ex-pats or foreign investors. Cash collections rose 36 percent annually to Dh1.06 billion, mainly due to handover collections in Mamsha, Yas Acres, West Yas, Water’s Edge, and Nareel.
Net operating income for the company’s investment properties portfolio grew by five percent to Dh308.6 million. Overall occupancy across diversified properties was 88 percent. The company’s residential portfolio reported a marginal 0.4 percent rise in net operating income, with occupancy increasing to 89 percent.
The retail segment of Aldar’s operating income was up 17.7%, mainly due to increased foot traffic and sales, which reflect improving consumer sentiment and purchase power. With the Yas Mall redevelopment plan progression, occupancy is expected to remain steady at 86 percent.
The operating income of the commercial portfolio declined by 0.5 percent, but underlying office occupancy held steady at 90 percent. Hospitality and leisure are recovering, with a 79 percent growth in operating income.
According to Aldar Education, the company’s operating income increased by 208 percent to Dh49.4 million, driven primarily by a 16 percent increase in student numbers to 21,983.
In the second quarter, revenue for Project Management Services increased 58 percent to Dh366.7 million, while gross profit soared 192 percent to Dh107.9 million.
Aldar also leads a consortium of investors that made a non-binding offer to acquire a majority stake in one of Egypt’s leading real estate development companies, Sixth of October Development and Investment Company.