Aldar Properties has announced a net profit of AED 2.8 billion for 2016, up eight per cent from AED 2.6 billion in 2015.
Aldar Properties (profile), whose portfolio includes iconic landmarks including the Formula 1 facilities on Yas Island, Yas Mall and Reem Island’s Shams Abu Dhabi community, has proposed an 11 fils per share dividend for 2016, up from 10 fils per share in 2015.
Commenting on the results, Aldar Properties CEO H.E. Mohamed Khalifa Al Mubarak said: “We have enjoyed a solid year in terms of our underlying financial performance and our delivery against our strategic goals. Our business continues to mature and our diverse and robust assets have delivered consistent returns through natural market cycles. We continue to see demand for our destination development strategy to create high quality, well-situated properties in vibrant communities in Abu Dhabi.
“As a result, our development sales value increased 17 per cent to AED 3.5 billion in 2016. Regarding our asset management portfolio, despite a softer operating environment we achieved our target of AED 1.6 billion recurring revenue net operating income.”
“In 2017, we intend to focus on the opportunities presented by the growing demand for mid-market products in our development business,” he added. “As for the asset management side, we remain fixed on our long term growth targets, which will be achieved through our AED 3 billion investment program — we look forward to announcing more details on this shortly. We also believe there are further investment opportunities, which our strong financial position gives us the scope and visibility to explore.”
Development business highlights
· Total development sales value of AED 3.5 billion across Aldar developments, led by Yas Acres, Mayan and West Yas
· Yas Island destination story continues to build momentum
. Three phases of Yas Acres launched, first two phases already sold out
. Three further buildings launched at Mayan, 80 per cent sold across first five buildings
· AED 3 billion of construction contracts awarded during the year
Asset Management business highlights
· 2016 recurring revenue net operating income of AED 1.6 billion
· Yas Mall maintained strong trading occupancy with 94 per cent units trading at year-end
· Residential portfolio occupancy: 92 per cent at year end
· Office portfolio occupancy: 95 per cent as of 31 December 2016
· Hotel portfolio occupancy for 2016: 77 per cent, compared to the Abu Dhabi market occupancy figure of 73 per cent