Aldar Properties reported a 30 per cent increase in third quarter revenue on the back of higher residential property sales and a growth in income from its third-party development management business.
Revenue for the three months to September 30 grew to Dh2.1 billion ($571.8 million). Net profit rose 8 per cent to Dh416m.
"The strength of Aldar’s business continues to be demonstrated in this challenging year, with our highly diversified business model delivering strong earnings," Aldar's chief executive Talal Al Dhiyebi said in a statement to the Abu Dhabi Stock Exchange, where its shares trade.
Aldar is the UAE's biggest property developer by market capitalisation, with a value of Dh20.92bn at close on Wednesday.
Revenue from the company's development management business doubled to Dh1.29bn on the same quarter last year, and is set to expand even further following the agreement announced in late October that it will manage Dh30bn worth of Abu Dhabi government capital projects, overseeing the work of Abu Dhabi General Services Company, known as Musanada.
Aldar already manages about Dh5bn worth of government projects under a separate agreement announced last year.
Some of the new assets being taken on include the Riyadh City and Baniyas North projects, as well as schemes in the Al Ain and Al Dhafra regions that will eventually be developed into more than 25,000 land plots and villas, with associated infrastructure, for Emiratis.
The company said the higher sales in the quarter were driven by "robust demand for high-end development projects" such as its Water's Edge, Nareel Island and Mamsha schemes.
"Strong sales at our prime developments reflects sustained investor confidence in Abu Dhabi’s real estate fundamentals, which are supported by the Government’s commitment to implement its economic growth and diversification strategy. Aldar is proud to be partnering with the Abu Dhabi Government as it invests further in strategic capital projects,” Mr Al Dhiyebi said.
Net profit for the nine month period was 11 per cent lower than in the same period last year at Dh1.2bn, but revenue was 17 per cent higher at Dh5.86bn. As of the end of September, the company had Dh2.5 billion worth of free cash and a further Dh4bn of undrawn credit facilities.
"Given the company’s balance sheet strength and robust cash position, Aldar continues to actively pursue opportunities to invest in both our development pipeline and in expanding our investment portfolio," Mr Al Dhiyebi said.
Abu Dhabi's residential market is continuing to soften, but the rate of price decline is slowing and transaction levels have picked up from a lull earlier in the year when social distancing measures put a brake on activity, according to a Q3 market report by Chestertons.
Average apartment and villa prices were 4.8 per cent and 4.7 per cent lower than the same period last year, but the decline on the previous quarter slowed to just 0.6 per cent and 0.2 per cent, respectively.
“Abu Dhabi enjoyed a more active third quarter, with both sales prices and rental rates showing greater stability," Chris Hobden, head of strategic consultancy at Chestertons Mena, said.
“Covid-19’s economic impact will undoubtedly continue to weigh on rental rates short-term, with improvements in residential market performance over 2021 largely contingent on a broader economic recovery.”
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Results
2pm: Handicap (PA) Dh80,000 1,600m; Winner: AF Al Baher, Bernardo Pinheiro (jockey), Ernst Oertel (trainer).
2.30pm: Handicap (TB) Dh100,000 1,600m; Winner: Talento Puma, Xavier Ziani, Salem bin Ghadayer.
3pm: Handicap (TB) Dh90,000 1,950m; Winner: Tailor’s Row, Royston Ffrench, Salem bin Ghadayer.
3.30pm: Jebel Ali Stakes Listed (TB) Dh500,000 1,950m; Winner: Mark Of Approval, Patrick Cosgrave, Mahmood Hussain.
4pm: Conditions (TB) Dh125,000 1,400m; Winner: Dead-heat Raakez, Jim Crowley, Nicholas Bachalard/Attribution, Xavier Ziani, Salem bin Ghadayer.
4.30pm: Jebel Ali Sprint (TB) Dh500,000 1,000m; Winner: AlKaraama, Antonio Fresu, Musabah Al Muhairi.
5pm: Handicap (TB) Dh100,000 1,200m; Winner: Wafy, Richard Mullen, Satish Seemar.
5.30pm: Handicap (TB) Dh90,000 1,400m; Winner: Cachao, Tadhg O’Shea, Satish Seemar.
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
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Best Foreign Language Film nominees
Capernaum (Lebanon)
Cold War (Poland)
Never Look Away (Germany)
Roma (Mexico)
Shoplifters (Japan)
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
RACE CARD
6.30pm Maiden (TB) Dh82.500 (Dirt) 1,400m
7.05pm Handicap (TB) Dh87,500 (D) 1,400m
7.40pm Handicap (TB) Dh92,500 (Turf) 2,410m
8.15pm Handicap (TB) Dh105,000 (D) 1,900m
8.50pm UAE 2000 Guineas Trial (TB) Conditions Dh183,650 (D) 1,600m
9.25pm Dubai Trophy (TB) Conditions Dh183,650 (T) 1,200m
10pm Handicap (TB) Dh102,500 (T) 1,400m
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Killing of Qassem Suleimani
Results
4.30pm Jebel Jais – Maiden (PA) Dh60,000 (Turf) 1,000m; Winner: MM Al Balqaa, Bernardo Pinheiro (jockey), Qaiss Aboud (trainer)
5pm: Jabel Faya – Maiden (PA) Dh60,000 (T) 1,000m; Winner: AF Rasam, Tadhg O’Shea, Ernst Oertel
5.30pm: Al Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 2,200m; Winner: AF Mukhrej, Tadhg O’Shea, Ernst Oertel
6pm: The President’s Cup Prep – Conditions (PA) Dh100,000 (T) 2,200m; Winner: Mujeeb, Richard Mullen, Salem Al Ketbi
6.30pm: Abu Dhabi Equestrian Club – Prestige (PA) Dh125,000 (T) 1,600m; Winner: Jawal Al Reef, Antonio Fresu, Abubakar Daud
7pm: Al Ruwais – Group 3 (PA) Dh300,000 (T) 1,200m; Winner: Ashton Tourettes, Pat Dobbs, Ibrahim Aseel
7.30pm: Jebel Hafeet – Maiden (TB) Dh80,000 (T) 1,400m; Winner: Nibraas, Richard Mullen, Nicholas Bachalard
Overview
What: The Arab Women’s Sports Tournament is a biennial multisport event exclusively for Arab women athletes.
When: From Sunday, February 2, to Wednesday, February 12.
Where: At 13 different centres across Sharjah.
Disciplines: Athletics, archery, basketball, fencing, Karate, table tennis, shooting (rifle and pistol), show jumping and volleyball.
Participating countries: Algeria, Bahrain, Comoros, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Saudi Arabia, Sudan, Syria, Tunisia, Qatar and UAE.
