November 12, 2019 / 7:52 AM / a month ago

Abu Dhabi's Aldar Q3 revenue jumps, sees growth in property market

DUBAI, Nov 12 (Reuters) - Abu Dhabi’s Aldar Properties said on Tuesday its revenue for the third quarter rose 7% to 1.6 billion dirhams ($435.6 million), as it recorded more sales of properties before they were built.

Off-plan development sales surged 272% to 1.1 billion dirhams, the company said, adding that it was optimistic about the country’s property market, supported by new visa rules for investors, the government’s fiscal stimulus package, and reforms to diversify the economy away from oil.

“It is very much a growth story for Aldar,” the company’s chief financial officer, Greg Fewer, told a post-earnings call. “The core business is growing quite nicely.”

The company reported a blip of 8% in its net profit for the third quarter to 387 million dirhams from a year ago, when it had recorded a higher non-recurring income from government infrastructure projects.

The company said the non-recurring income in the third quarter of 2018 was “primarily from government reimbursement payments for completed infrastructure delivered by Aldar.”

Arqaam Capital had a net profit forecast of 435 million dirhams, while EGF Hermes had projected 429 million dirhams.

Aldar’s upbeat views come amid softening residential prices and rents in the United Arab Emirates (UAE) this year.

To accelerate economic growth, the emirate launched a 50 billion dirham ($13.6 billion) stimulus fund, Ghadan 21, in September last year. Ghadan means tomorrow in Arabic.

Abu Dhabi has also said will commit up to 1 billion dirhams to support technology start-ups in a dedicated hub as part of efforts to diversify its economy. ($1 = 3.6728 UAE dirham) (Reporting by Saeed Azhar; editing by Uttaresh.V)

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