Aldar Properties took a hit to its bottom line in the second quarter despite the company posting stronger revenue thanks to recent additions to its portfolio.
Abu Dhabi’s largest property developer booked a 28% year-on-year drop in earnings for the period after being stung by the revaluation of certain properties.
Net profit attributable to shareholders for the three-month period ending June 30 slumped to AED 445mn ($121mn) from AED 620mn a year earlier.
Half year net profit fell by 11.7% to AED 1.1bn compared to the first half of 2017, the company reported.
However gross profit in Q2 2018 jumped 20% to AED 649mn while half-year gross earnings rose by 5% to AED 1.4bn.
And Aldar saw first quarter revenue rise 12% to AED 1.5bn supported by the acquisition of AED 3.6bn worth of assets from TDIC. The deal completed in June less than 60 days after being announced, Aldar said.
Half-year revenue edged up by 2% to AED 3bn driven by acquisitions and revenue recognition on developments under construction.
Talal Al Dhiyebi, Chief Executive Officer of Aldar Properties, said: “Aldar delivered a solid underlying performance for the first half of 2018 alongside a number of landmark announcements.
“In the development business, we launched a new masterplanned community Alghadeer and reinforced our reputation for delivery as we commenced handover of land plots and villas at Nareel Island, Al Merief and West Yas.
“We have cemented our position as Abu Dhabi’s leading real estate investment company by completing one of the country’s largest ever real estate acquisitions.
“The transaction, completed in just 60 days after being announced, adds AED 3.6 billion of strategic operating and development assets to our existing portfolio, which continues to deliver a resilient and consistent performance, positioning us well for future growth.”