Aldar Third-Quarter Profit Beats Estimates After Costs DecreaseBy
Direct costs fall to 628.5m dirhams compared to 1b dirhams
Gross profit from recurring revenue rose 47% to 349m dirhams
Aldar Properties PJSC, Abu Dhabi’s largest developer and the builder of a Ferrari theme park, said third-quarter profit climbed, beating analysts’ estimates, as costs dropped and recurring income increased.
Net income surged to 634.3 million dirhams ($173 million) from 579.6 million dirhams a year earlier, the company said in a statement Tuesday. The mean estimate of five analysts was for profit of 422 million dirhams, according to data compiled by Bloomberg.
The developer, which received billions of dirhams in government bailouts after Abu Dhabi’s property market collapsed in 2008, has been reducing its debt and increasing rental income from retail, hotels and leasing. Aldar will start selling a new residential development, Mayan, on Abu Dhabi’s Yas Island later this month.
“We continue to see strong demand in residential sales with Shams Meera and West Yas both performing well in the quarter, demand we will continue to respond to with quality residential products,” Chief Operating Officer Mohammed Al Mubarak said.
Gross profit from recurring revenue climbed 47 percent to 349 million dirhams, driven by the opening of Yas Mall and full occupancy in 4,800 leased residential units, the company said.
Direct costs dropped to 628.5 million dirhams from 1.01 billion dirhams a year earlier. Quarterly revenue fell 14 percent to 1.18 billion dirhams, the company said.
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