Abu Dhabi developer Aldar reports 28.5% fall in 2017 net profit

DUBAI: Abu Dhabi developer Aldar on Wednesday reported a 28.5 percent fall in its annual net profit for 2017, impacted by a 3 percent value adjustment to its asset management portfolio as well as weaker property prices.
Net profit attributable to stockholders was down to Dh2 billion last year from Dh2.8 billion in 2016, the developer said in its disclosure to the Abu Dhabi stock market. It proposed a 12 fils per share dividend for 2017, up 9 percent from 11 fils per share offered in 2016.
Aldar also reported that annual revenue rose 26 percent to Dh6.2 billion.
The company likewise said that underlying profit was up 34 percent to Dh2.7 billion for 2017, boosted by robust business from projects under construction.
Full-year development sales were recorded at Dh3.5 billion, way ahead of expectations, of which Dh1.2 billion were generated during the fourth quarter, thanks to the Water’s Edge and West Yas property projects.
Sales for the Dh2.4-billion, 2,255-home Water’s Edge development on Yas Island was launched at Cityscape Global in Dubai last year, which quickly sold out its second phase after similarly selling out its first phase in a short period.
The West Yas development, meanwhile, has 1,017 four- and five-bedroom villas located along Yas Island’s mangroves and is available exclusively for Emiratis at prices starting Dh4 million.
“Our accomplishments during 2017 validate the success of our destination development strategy. Off-plan development sales hit Dh3.5 billion, demonstrating the rich demand for Aldar’s properties while we expanded our portfolio of owned assets with the acquisition of International Tower, achieving our target of Dh1.6 billion in net operating income,” Talal Al-Dhiyebi, Chief Executive Officer of Aldar Properties, said in the statement.
“We have bold plans for 2018 - exciting development launches and seeking opportunities to grow our portfolio in existing and new markets.”