Aldar's Q3 profit rises 21% even as development sales fall 34%
By Staff Writer
Abu Dhabi developer Aldar Properties reported a 21% rise in third-quarter consolidated net profit after tax to AED 2.3 billion ($626 million), supported by higher rental income and revenue from existing projects, even as development sales fell 34%.
Net profit attributable to shareholders rose 25% to AED 1.9 billion.
Revenue rose 16% to AED 9.3 billion, while EBITDA (earnings before interest, taxes, depreciation and amortisation) increased 22% to AED 3 billion, the company said Tuesday.
Aldar's investment division reported a 27% increase in adjusted EBITDA to AED 997 million, supported by higher rents, acquisitions and strong occupancy across commercial, residential and retail properties.
Group development sales fell 34% to AED 6.8 billion in the third quarter, while UAE sales dropped 45% to AED 5 billion from AED 9.1 billion a year earlier.
Aldar launched seven projects during the quarter after a slower first half, including developments on Saadiyat Island and Yas Island.
Aldar's development revenue rose 20% to AED 7 billion in Q3, supported by its AED 71.6 billion project backlog.
The developer is also expanding its pipeline, unveiling Marsa Al Saadiyat, a project with an estimated development value of AED 60 billion. In October, it agreed to acquire more than 1,100 homes in Sharjah for AED 1.1 billion, marking its first property investment in the emirate.
Commercial property occupancy stood at 99%, while retail and residential occupancy reached 97%.
Hospitality adjusted EBITDA fell 3% to AED 39 million as regional travel disruptions weighed on demand.
For the first nine months, net profit rose 19% to AED 7.1 billion, while revenue increased 11% to AED 26.2 billion.
(Writing by Mily Chakrabarty; editing by Daniel Luiz)