Aldar Properties profit rises 8% as development business outperforms

DUBAI, Nov 12 (Reuters) – Aldar Properties ALDAR.AD, Abu Dhabi’s biggest property firm, posted an 8% rise in third-quarter net profit, helped by strong sales of completed residential units and income from its third-party development management business.

Aldar recorded a net profit of 416 million dirhams ($113.27 million) in the quarter ended Sept. 30, up from 387 million dirhams a year earlier, it said in an announcement late on Wednesday.

Sales of high-end development projects and strong cash collection for projects being handed over helped double Aldar’s revenue from its development business, which is set to take over more than 30 billion dirhams worth of Abu Dhabi government capital projects. [nD5N2FS00U]

“Aldar’s diversified business is performing well this year and we are in a robust financial position, driven by strong cash generation,” Chief Financial Officer Greg Fewer said on an earnings call on Thursday, adding that Aldar would assess acquisition opportunities, particularly in its home market, but declined to provide further details.

Fewer said most of the Abu Dhabi government projects are related to national housing and infrastructure, with Aldar’s development business expected to accrue revenue from the first quarter of 2021.

Aldar’s shares have gained more than 23% year-to-date, outperforming Abu Dhabi’s benchmark stock index .ADI and other property firms such as Dubai’s Emaar Properties EMAR.DU, which has declined nearly 29% this yeardue to a downturn in Dubai’s property market.

Abu Dhabi’s real estate market has held firm this year despite the challenging global macroeconomic environment, Aldar said, supported by incentives for home buyers and a measured supply of new units. ($1 = 3.6728 UAE dirham)

(Reporting by Saeed Azhar; Editing by Devika Syamnath)

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