Abu Dhabi: Aldar Properties, the Abu Dhabi-based real estate developer, on Tuesday reported Dh601 million in net profits for the second quarter of this year, marking an 18 per cent increase from the Dh509 million in the second quarter of 2014.
The developer attributed the rise to a growth in recurring revenues, higher development margins, and lower finance costs following significant refinancing efforts over the past two years.
Revenues fell, however, to Dh1.1 billion in the quarter compared to Dh2.1 billion during the same time last year after Aldar’s decision to adopt the IFRS 15 revenue recognition accounting policy.
The decision, which came in July 2015, impacts how the company recognises revenue for off-plan development projects, which will now be predominantly accounted for over time rather than at a single quarter.
“We remain on track to meet our target level of debt, and have paid off a further Dh1.1 billion during the quarter. Positive interest in our new developments — Nareel, Al Merief and Meera — demonstrates that we are bringing the right products to market at the right time,” said Mohammad Al Mubarak, Aldar’s chief executive officer.
He added, “Our strategy remains unchanged. We continue to grow our recurring revenues, strengthen our balance sheet, and monetise our land bank through implementing a clear and well defined development plan.”
