Aldar Properties, Abu Dhabi's largest listed developer, reported a 5 per cent rise in first quarter net profit thanks to higher offplan sales and a one-off gain from the disposal of an asset.
Net profit attributable to equity owners in the three months ending March reached Dh669.5 million from the year-earlier period, the company said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded. The earnings came above the average Dh579m estimate of analysts polled by Bloomberg.
Revenue for the quarter stood at Dh1.5 billion, in line with Dh1.58bn in the first quarter of 2017, while development sales for the quarter plunged 32 per cent to Dh681m from about Dh1bn.
Key drivers for the profit rise included “an increase in underlying gross profit” and strong off-plan sales, Aldar’s chief financial officer Greg Fewer told reporters by telephone on Tuesday.
There was also Dh133m of ‘other’ income handed over by the government for infrastructure projects, and a one-off gain from the disposal of Aldar’s 50 per cent stake, via a joint venture with Tabreed, in cooling assets on Reem Island, he said.
Aldar expects to report increased earnings over the coming quarters once the planned acquisition of Dh3.7bn worth of real estate assets from Abu Dhabi’s Tourism Development & Investment Company completes in the summer. The company also has tied up with Emaar Properties, Dubai's biggest listed real estate company, to develop a potential of Dh30bn worth of projects in the UAE.
The operating assets being acquired from TDIC – including the Eastern Mangroves complex and Cranleigh School Abu Dhabi – will deliver Dh120m of annualised net income, while projects under development – including Saadiyat Grove, with Emaar – are expected to generate gross revenues of Dh2.5bn.
“We are very happy with our acquisition and we expect it to be immediately accretive,” Mr Fewer told reporters.
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Aldar’s asset management portfolio of residential, retail, office and hospitality properties delivered steady net operating income of Dh396m, “demonstrating portfolio resilience”, the company said.
Aldar's net profit beat Bahrain-based investment bank Sico's Dh593m forecast due to higher non-recurring income, said Ayub Ansari, a senior analyst. However, he highlighted the drop in value of projects sold to Dh681m, reflecting a more challenging real estate market, Mr Ansari said. Mr Fewer, though, told reporters he was seeing a “very healthy market”.
Meanwhile, occupancy levels at Yas Mall declined to 89 per cent in the quarter, from 95 per cent. “Aldar attributes this to a temporary re-allocation of tenants - including possible letting go of low-yielding tenants - and expects occupancy levels to go up in the coming quarters,” Mr Ansari said after an analysts' call with Aldar on Tuesday afternoon.
During the first quarter, Aldar completed handovers for its Ansam and Al Hadeel projects, started handover of Nareel Island and Al Merief, and launched Reflection, a new residential development on Abu Dhabi’s Reem Island. It also awarded a Dh1.3bn construction contract for the Water’s Edge scheme.
In April, Aldar unveiled the Dh10bn masterplan for Alghadeer community on the border of Dubai and Abu Dhabi. Sales from the first phase are expected to boost the balance sheet later this year.
“Aldar started 2018 strongly with the announcement of an historic partnership with [Dubai-based] Emaar Properties to develop the next era of iconic real estate destinations,” said Talal Al Dhiyebi, chief executive of Aldar Properties.
“The initial Dh30bn pipeline of projects, including Saadiyat Grove in Abu Dhabi and Emaar Beachfront in Dubai, is just the start of this partnership, which will enhance our country’s reputation as a destination of choice for residents and tourists alike.”
Specs%20
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How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
Dubai works towards better air quality by 2021
Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.
The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.
These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.
“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.
“We’re in a good position except for the cases that are out of our hands, such as sandstorms.
“Sandstorms are our main concern because the UAE is just a receiver.
“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”
Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.
There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.
“There are 25 stations in total,” Mr Al Daraji said.
“We added new technology and equipment used for the first time for the detection of heavy metals.
“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”
Company%20Profile
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COMPANY%20PROFILE
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The Africa Institute 101
Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction.
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Batti Gul Meter Chalu
Producers: KRTI Productions, T-Series
Director: Sree Narayan Singh
Cast: Shahid Kapoor, Shraddha Kapoor, Divyenndu Sharma, Yami Gautam
Rating: 2/5
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The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
UAE currency: the story behind the money in your pockets