Aldar Properties Q3 profit up 9.4% as Yas Mall fully leased

Abu Dhabi’s Aldar Properties extended an earnings boom as higher margins enabled the developer to report a 9.4 per cent rise in third-quarter net profit on Tuesday.

The state-linked builder of Abu Dhabi’s Formula One circuit made a profit of Dh634.3 million in the three months to September 30, it said in a bourse statement.

This compares with a profit of Dh579.6m in the corresponding period of 2014. SICO Bahrain had forecast Aldar would make a quarterly profit of Dh490.7m.

The developer has now reported higher profits in nine of the past 10 quarters and the latest rise was despite a 14 per cent drop in quarterly revenue to Dh1.18 billion.

Aldar’s third-quarter direct costs fell to Dh628.5m versus Dh1.01bn a year earlier. This gave the firm a quarterly gross profit margin of 47 per cent, up from 26 per cent in the prior-year period.

Recurring revenues – from leasing commercial, retail, residential and hotel units – delivered a third-quarter gross profit of Dh349m. That compares with Dh238m a year ago and follows the opening of its 2.5 million square foot Yas Mall in November last year.

All units at the mall are leased, while as of September 30 its residential portfolio of 4,800 homes was 99 per cent occupied, its office units were 92 per cent leased and hotel occupancy for the first nine months of 2015 was 79 per cent, the company said.

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