Overall revenue of Abu Dhabi’s Aldar Q1 inflates by 36%

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Abu Dhabi’s Aldar Properties is set on a highly prosperous path, reporting a 36 percent rise in the first quarter net profit, as its business costs fell and the earnings went high. There are many different facets that contribute to this net profit rise. To begin, Aldar has expanded its income, shifting from property sales to regular revenue businesses, such as residential, office, retail, as well as hotels and hospitality. This expansion has helped minimize the instability of the real estate industry. Aldar’s first quarter revenue included AED 579 million from property and development sales, AED 453 million from residential, office and retail rentals and AED 157 million from its hotel business. Even though its first quarter revenue fell 19.5% to AED 1.38 billion, year on year, Aldar’s quarterly gross profit margin rose to 47% from 20% due to a significant improvement in the quality of its earnings, according to CFO Greg Fewer, and it is expected to continue to grow.

Following this further, quarterly gross profit margins from Aldar’s regular income, has shown a growth of 61% to AED 368 million. In terms of business costs, the company’s direct ones dropped to AED 737.5 million, from AED 1.37 billion, while its borrowing costs dropped to an average of 2.75%, from 5% a year earlier, after it took care of some debts and the rating assistances made some improvements in the company. These improvements let financial charges fall to 59% quarter-on-quarter, according to Fewer. Besides this, Aldar reduced its gross debt to AED 8.2 billion, from AED 9.2 billion at the end of 2014, which helped to cut its net debt-to-equity ratio to 16% from 25% at the end of last year. As of now, State-owned business fund Mubadala Development Co owns 30% of Aldar, and Analyst SICO Bahrain predicts that Aldar would make a quarterly profit of AED 509.2 million.

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